March 17, 2014

DOJ TAKING OVER HANFORD TIME CARD FRAUD CIVIL LAWSUIT

By ExchangeMonitor

The Department of Justice is taking over a civil lawsuit filed against former Hanford contractor CH2M Hill Hanford Group and its parent corporation for alleged timecard fraud. The lawsuit was filed in Eastern Washington U.S. District Court by former CH2M Hill worker Carl Schroeder on behalf of the United States under the False Claims Act. The False Claims Act allows individuals to sue on behalf of the government and collect a portion of any damages awarded. However, Schroeder is one of eight former CH2M Hill workers who have pleaded guilty in the same federal court to conspiracy to commit timecard fraud. They admitted to repeatedly claiming a full eight hours of work when they were assigned to overtime shifts after their regular workdays or work weeks ended, even though they worked fewer than eight hours of overtime. The Department of Justice has notified the court that it plans to file a motion to dismiss Schroeder from the False Claims Act civil lawsuit he filed because of his criminal conduct in the case, the Department of Justice said. The False Claims Act bars any whistleblower filing claims from receiving any damages if they are convicted of criminal conduct in the case. Schroeder filed the claim in federal court in 2009, but the case has been sealed until recently when federal Judge Lonny Suko ordered three of 22 documents in the case unsealed. Schroeder pleaded guilty in November 2011 to falsifying his timecard as part of a conspiracy with other workers.

The decision by the Department of Justice to intervene in the False Claims Act civil case brought by a former employee who has pleaded guilty to defrauding the government is disappointing, said John Corsi, CH2M Hill vice president for public relations. CH2M Hill brought up concerns about timecard practices at the Hanford tank farms to the federal government as early as 2004 and asked for help in investigating the matter, Corsi said. Since then it has cooperated fully with the government’s investigation and will continue to do so, he said. “We are optimistic than an amicable and fair resolution can be reached in this matter once the true facts are known and understood,” he said. In the civil lawsuit, Schroeder has asked that CH2M Hill be required to pay triple the actual damages sustained by the United States plus civil penalties. He also is requesting attorneys’ fees and reinstatement to his job with double back pay.

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