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Company contracted with National Nuclear Security Administration charged with kickback violations

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Sunday, December 22, 2024

Company contracted with National Nuclear Security Administration charged with kickback violations

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WASHINGTON, D.C. — A company contracted by the National Nuclear Security Administration (NNSA) and its subcontractor are facing a lawsuit by the U.S. Department of Justice (DOJ) over allegations of violating the False Claims Act and Anti-Kickback Act.

The DOJ filed the suit against CB&I AREVA MOX Services LLC (MOX Services) a company hired to design, build and operate the MOX Fuel Fabrication Facility at the NNSA Savannah River site and subcontractor, Wise Services. According to the department, MOX entered into several subcontracts with Wise Services for labor, materials, equipment and supervision services for the project when Wise falsely claimed reimbursements for construction services that did not exist. MOX then submitted $6.4 million in claims to the NNSA despite knowing they were fraudulent, the DOJ said. 

“Government contractors who line their bank accounts by receiving kickbacks or submitting fraudulent claims undermine the public's trust in government programs and operations,” DOJ Civil Division assistant attorney general Jody Hunt said in a statement. “We will continue to vigorously pursue those who misuse taxpayer funds.” 


“We take allegations of false claims, overbilling and kickbacks very seriously and will aggressively investigate these matters to protect the department and the American taxpayers," added Department of Energy inspector General Teri Donaldson. 

The DOJ also alleges that Wise Services' executive Phillip Thompson paid kickbacks to MOX officials, charges to which Thompson pleaded guilty to last year, the department said. 

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