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Lockheed Martin employee enters settlement of False Claims Act violations

Staff Writer | August 8, 2018
The Justice Department announced that Richard A. Olsen agreed to pay $124,440 to resolve claims that he violated the False Claims Act by submitting inflated prices in connection with a subcontract between Mission Support Alliance, LLC (MSA), a prime contractor at the Department of Energy (DOE) Hanford Nuclear Reservation, and Lockheed Martin Services, Inc. (LMSI), a subsidiary of Lockheed Martin Corporation (LMC).
Industry   LMSI provided services to MSA
LMSI provided services to MSA as well as other prime contractors assisting with environmental cleanup services at the Hanford site near Richland, Washington. Mr. Olsen was an employee of LMC working for MSA. LMC, through a subsidiary, was one of the owners of MSA.

In August 2009, MSA began performance under a multi-billion dollar services contract with the DOE for the environmental cleanup of the Hanford Site.

The United States alleged that under the terms of MSA’s contract with DOE, LMSI, as an affiliate of MSA, was not entitled to receive profit on the work it performed for MSA.

The United States further alleged that Mr. Olsen, while he was an employee of LMC working for MSA, falsely represented to DOE that the LMSI subcontract did not include any profit. Mr. Olsen allegedly received a payment of at least $41,480 from LMC for obtaining DOE’s consent to the inflated LMSI subcontract.

The investigation of Mr. Olsen was handled by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Eastern District of Washington, and the DOE Office of the Inspector General.

The claims settled by this agreement are allegations only, and there has been no determination of liability.