False Claims Act Case for Inflated Information Technology Subcontract Costs

It was announced, on February 8, 2019, that the United States has filed a False Claims Act suit against Mission Support Alliance LLC (MSA), Lockheed Martin Corporation (LMC), Lockheed Martin Services Inc. (LMSI), and Jorge Francisco Armijo for alleged false claims and kickbacks in connection with a multi-billion dollar contract with the Department of Energy (DOE) to support the environmental cleanup at the Hanford Site near Richland, Washington, the Justice Department announced today.

The United States’ complaint alleges that the defendants knowingly made or caused false statements to the DOE regarding the amount of profit included in the billing rates for LMSI under the subcontract it was awarded by its affiliate, MSA.

The False Claims Act allows whistleblowers with knowledge of fraud, waste and abuse to file a qui tam case on behalf of the government. The False Claims Act also allows the government to file a case, without a whistleblower, which is what happened here. The case is captioned: United States v. Mission Support Alliance, LLC, et al.(E.D. Wash.).

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