SPARKS, Nev. (KOLO) - The Sierra Nevada Company will pay $7.75 million to resolve False Claims Act allegations.

The Department of Justice says the settlement resolves claims that the Sparks-based defense contractor employed a government official who, while employed by both SNC and the government, participated personally and substantially in three government contracts awarded to SNC.

The DOJ says that from July 2019 to June 2020, SNC retained Michael Henry, an employee with the Department of Defense who was employed as a consultant. They say that as a consultant, Henry was involved in the awarding of three different government contracts to SNC.

After beginning his employment with SNC, Henry continued to serve as a DOD employee, personally participating in the contracts by evaluating and obtaining approvals for SNC products.

The DOJ says that while working as an SNC consultant, he also participated in the contracts on SNC’s behalf by recommending SNC’s products and purchases.

The settlement was announced Tuesday and resolves claims that SNC submitted or caused the submission of false claims, false statements, and false certifications in connection with the contracts.

The DOJ further alleges that SNC’s employment of Henry and his participation in the contracts constituted a conflict of interest.

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