Richland, Washington – First Assistant United States Attorney S. Peter Serrano announced that on February 2, 2026, federal contractor Hanford Mission Integration Solutions (HMIS) paid $3,450,000 to the U.S. Department of Justice (DOJ) as part of a settlement agreement resolving allegations that HMIS fraudulently overcharged the U.S. Department of Energy (DOE) for millions of dollars in labor hours.This settlement with HMIS resolves allegations under the False Claims Act that HMIS’ management was aware of and failed to prevent inflated labor hours being charged to DOE. These hours were paid to HMIS by DOE from federal funds and included payment for labor hours for which HMIS employees were not scheduled or assigned sufficient work to perform.Since 2020, HMIS has had a multi-billion dollar performance-based prime contract with DOE for infrastructure and site services which are integral and necessary to accomplish the environmental cleanup mission. Under its prime contract with DOE, HMIS receives reimbursement for its claimed allowable costs, including labor. According to the allegations filed in court, HMIS fraudulently inflated reimbursable costs by failing to provide its employees with work assignments sufficient to fill an entire shift and then directed those same employees to record their time as if they had worked the entire shift. This false recording of time resulted in HMIS knowingly submitting false claims for the payment of those labor hours.Under the settlement agreement entered into with the U.S. Attorney’s Office, HMIS admitted that between August 17, 2020, and September 30, 2025, it sought and received reimbursement from DOE for labor hours made up of unallowable excessive idle time. HMIS has further admitted in the settlement agreement that, at times, it did not schedule or assign sufficient work to be performed by its personnel. HMIS has paid a total settlement amount of $3,450,000, of which $1,725,000 is restitution.“Corporate fraud perpetrated upon the taxpayer at Hanford distracts from DOE’s vital clean up mission,” stated First Assistant U.S. Attorney Serrano. “This resolution shows our continuing commitment to fighting fraud at Hanford and to ensuring that those tasked with the responsibility of essential environmental cleanup do not abuse our trust in them. I am grateful that HMIS ultimately did the right thing by admitting its conduct and paying back twice what it took from the taxpayers. I hope every individual and business that contracts with the federal government sees this settlement and knows there’s a real risk of prosecution when the United States is defrauded.”In December 2021, a HMIS employee came forward with allegations of labor mischarging by filing a qui tam complaint under seal in the U.S. District Court (EDWA) under the False Claims Act. In May 2024, the same individual, a whistleblower known as a “Relator” under the False Claims Act, came forward with a second qui tam complaint, also filed under seal, making additional allegations of HMIS’ fraud. When a relator files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. This settlement resolves both qui tams filed by the relator. As part of the settlement agreement, the relator will receive $793,500 of the settlement amount and is entitled to have HMIS pay the relator’s attorney fees.“I thank and commend the relator-whistleblower for bringing serious and credible allegations of fraud to our attention” said First Assistant U.S. Attorney Serrano. “Through the relator’s information and the years’ long investigation, we are able to uncover fraud and hold HMIS accountable…
Source: U.S. Department of Justice