The prime contractor for the construction of the Mixed Oxide Fuel Fabrication Facility at the Savannah River Site has agreed to pay $10 million to resolve fraud allegations.
According to a March 7 news release from the Department of Justice, Mox Services, formerly known as CB&I Areva Mox Services, of South Carolina submitted fraudulent invoices for non-existent materials and received kickbacks.
MOX was supposed to confirm receipt and acceptance from subcontractors for any materials before MOX approved and submitted the claims to the Department of Energy for payment. One of those subcontractors, Wise Services Inc., sent MOX hundreds of invoices for millions of dollars for material that never existed. The government contends that in exchange for submitted the fraudulent invoices, MOX employees received kickbacks from Wise employees involved in the scheme.
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“It is vital that contractors on federally funded projects provide sufficient oversight of the companies they hire to ensure that the government is billed only for legitimate goods and services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will pursue those who knowingly fail to prevent the submission of false claims.”
“Federal contractors cannot charge for non-existent materials and accept kickbacks in connection with federal contracts,” said U.S. Attorney Corey F. Ellis for the District of South Carolina. “To do so is to defraud the American taxpayer. The District of South Carolina will use all available remedies to hold those contractors accountable.”
“Contractors to the Department of Energy cannot turn a blind eye to the fraudulent behavior of their subcontractors,” said Inspector General Teri L. Donaldson of the Department of Energy. “These behaviors undermine the Department of Energy’s programs and operations. The Inspector General’s office will continue to work with our partners at the Justice Department and the U.S. Attorney’s Offices to hold those who defraud the government accountable.”
The $10 million resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina, with assistance from the DOE Office of Inspector General and the National Nuclear Security Administration.
