A subcontractor that prosecutors accused of invoicing for millions of dollars in material that did not exist while it worked on a Dept. of Energy project has agreed to pay more than $300,000 to resolve the allegations against it.
Dayton, Ohio-based Wise Services Inc. knowingly submitted the phony invoices to prime contractor MOX Services LLC, formerly known as CB&I AREVA MOX Services LLC, while working on the Dept. of Energy’s since-canceled Mixed Oxide Fuel Fabrication Facility in Aiken, S.C. between 2008 and 2015, according to Dept. of Justice officials. Subsequently, MOX Services submitted $6.4 million in fraudulent claims to the DOE’s National Nuclear Security Administration, officials alleged in a 2019 civil lawsuit.
Wise Services employees also paid kickbacks to MOX employees to approve the invoices, the suit alleged. The kickbacks totaled $52,000, with items varying from sunglasses to firearms and sports event tickets, ENR previously reported.
The settlement amount of $302,500 “was negotiated based on Wise’s lack of ability to pay,” DOJ officials said in a press release. Additionally, Wise agreed to pay the government 4% of any annual revenues beyond $6 million and 10% of proceeds from the sale of any assets over the next five years.
The settlement agreement notes that Wise denies the claims made in the government’s lawsuit. In a statement provided by Mary Lentz, one of Wise’s attorneys, the company said it was unaware of, did not authorize and did not...
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