Sparks-based Sierra Nevada Co. has agreed to pay $7.75 million to settle federal allegations that it hired a Defense Department official as a paid consultant while he participated in government contracts involving the company, according to the Justice Department.
The settlement, announced Tuesday by the U.S. Attorney's Office for the Eastern District of Virginia, resolves False Claims Act allegations. Prosecutors alleged Sierra Nevada Co. failed to disclose the conflict and made false statements, certifications and omissions that induced the award of three government contracts.
According to the Justice Department, Michael Henry worked as a consultant for Sierra Nevada Co. from July 2019 through June 2020 while continuing to serve with the Joint Staff J-6. Prosecutors alleged he participated in government contracts involving Sierra Nevada Co. as a government official while also recommending the company's products as its paid consultant.
The allegations involved three contracts: an Army subcontract awarded in 2019, a General Services Administration contract awarded in 2020 and task orders under a Special Operations Command contract.
Henry, the former technical director for the Joint Staff J-6 Joint Tactical Integration Element, pleaded guilty in 2025 to a federal conflict-of-interest charge stemming from the same conduct.
The Reno Gazette Journal first reported the allegations in 2024 after Henry was indicted on a federal conflict-of-interest charge.
Sparks-based Sierra Nevada Co. has agreed to pay $7.75 million to settle federal allegations that it hired a Defense Department official as a paid consultant while he participated in government con...