Law360 (March 7, 2022, 4:33 PM EST) — South Carolina nuclear fuel reprocessing contractor MOX Services LLC will pay $10 million to settle a federal lawsuit from 2019 alleging that it submitted fraudulent claims to the U.S. Department of Energy, the U.S. Department of Justice announced on Monday.
According to the DOJ, MOX — formerly CB&I AREVA MOX Services LLC — submitted hundreds of invoices from subcontractor and co-defendant Wise Services Inc. to the DOE for nonexistent materials. Mox allegedly received kickbacks from Wise for the fraudulent invoices in violation of the Fair Claims Act.
“It is vital that contractors on federally funded projects provide sufficient oversight of the companies they hire to ensure that the government is billed only for legitimate goods and services,” the DOJ’s Civil Division head Brian M. Boynton said in a statement accompanying Monday’s release.
The DOJ filed suit in February 2019, claiming that MOX tapped Wise for multiple subcontracts between 2008 and 2016 covering various “unplanned” construction activities such as general labor and plumbing, electrical and carpentry services.
MOX had been tasked with constructing the Mixed Oxide Fuel Fabrication Facility at the National Nuclear Security Administration’s Savannah River site in South Carolina, according to Monday’s release.
According to the DOJ, Wise made hundreds of false cost-reimbursement claims for nonexistent construction materials, and Mox knowingly passed along $6.4 million in claims to the NNSA.
Counsel for MOX and Wise did not immediately reply to requests for comment on Monday. In a joint filing submitted on Dec. 15, all parties said they had “negotiated a settlement in principle” following mediation earlier that month.
The U.S. is represented by U.S. Department of Justice’s Fraud section attorneys Don Williamson and Rory Skaggs, Civil Division Chief James Leventis Jr. and Assistant U.S. Attorneys Johanna Valenzuela and Sheria Clarke of the U.S. Attorney’s Office for the District of South Carolina.
MOX Services LLC is represented by Lindsay A. Joyner and John E. Cuttino of Gallivan White & Boyd PA and Thomas E. Wheeler and Anthony W. Overholt of Frost Brown Todd LLC.
Wise Services Inc. and David F. Abney II are represented by Bill Nettles and Fran Trapp of the Law Office of Bill Nettles and Mary Lentz of Gottschlich & Portune LLP.
The case is U.S. v. CB&I Areva MOX Services LLC et al., case number 1:19-cv-00444, in the U.S. District Court for the District of South Carolina.
–By Emma Whitford. Additional reporting by Daniel Wilson. Editing by Steven Edelstone.
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