CH2M Hill To Pay $18.5M To Settle Federal Fraud Charges

Justice said that CH2M Hill is to pay $16.55 million to resolve civil liability under the False Claims Act. The company also entered a non-prosecution agreement to resolve criminal liabilty with the office of Michal C. Ormsby, the U.S. attorney for the eastern district of Washington.

In addition, the department said CH2M Hill will refund $1.95 million in “wrongfully obtained profits.” Ormsby said the company also will “take substantial remedial steps,” which includes the additional $500,000 to achieve increased accountability at Hanford.

Further, a company subsidiary working at Hanford, CH2M Hill Plateau Remediation Co., has agreed to have a corporate monitor for three years.

Ormsby said, “Under this global resolution, CH2M Hill will continue its commendable cooperation and help ensure that all individuals who participated in this conspiracy and profited from it will be brought to justice as well.”

Justice said eight people have pleaded guilty to the time-card fraud. It noted that the allegations resolved by the settlement were raised in a whistle-blower lawsuit filed by former CH2M Hill employee Carl Schroeder, who is one of those who entered guilty pleas.

Schroeder’s lawsuit is United States ex rel. Schroeder v. CH2M Hill, No. 09-cv-5038 (E.D. Wash.). The federal government intervened in the case last year.

Tom Ichniowski has been writing about the federal government as ENR’s Washington Bureau Chief since the George H.W. Bush administration, and he has covered at least five major highway bills. A recognized expert on government policy on infrastructure and regulation, Tom is also a Baltimore native and Orioles fan who grew up rooting for Brooks and Frank Robinson. He is a graduate of Columbia College and Columbia’s graduate school of journalism, where he once used “unrelentless” in a headline.

Post a comment to this article

Enhancing Collaboration and Surpassing Traditional Design-Build Methods with Progressive Design-Build

Earn: 1 PDH; 1 AIA LU/Elective; 0.1 IACET CEU

Progressive Design-Build is reshaping large infrastructure projects by addressing key issues with the traditional Design-Build approach. We'll explore how PDB fosters collaboration between owners, design-builders, and design teams to develop a well-defined scope and budget, plus minimizes cost overruns and reduces liability claims.