Prime Contractor Agrees to Pay $10 Million to Resolve Allegations of False Claim Act Violations
The Department of Justice (DOJ) announced that MOX Services LLC, located in South Carolina, has agreed to pay $10 million to resolve allegations that it violated the False Claims Act by knowingly submitting false and fraudulent invoices for non-existent materials to the Department of Energy (DOE) and receiving improper kickbacks.
MOX Services, LLC was the prime contractor for the construction of the Mixed Oxide Fuel Fabrication Facility at the DOE Savannah River Site in Aiken, South Carolina. DOJ alleged that MOX was obligated to confirm receipt and acceptance from subcontractors of any materials before MOX approved and submitted claims to DOE for those materials. One of those subcontractors—Wise Services Inc. (Wise)—submitted to MOX hundreds of invoices charging millions of dollars for materials that did not exist. MOX presented those false invoices to DOE. DOJ alleged that by knowingly failing to follow its own policies and procedures, MOX violated its obligation to uncover that the Wise invoices were for non-existent materials. DOJ also alleged that MOX employees received kickbacks from Wise employees involved in the scheme.
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