Booz Allen Under DOJ Investigation for Government Overhead Charges

Booz Allen Hamilton Inc. (NYSE: BAH), the McLean-based government services company, is the subject of a civil and criminal probe by the Department of Justice, the company announced Thursday evening.

Booz Allen was informed of the development on June 7, the company said, with the investigation tied to “certain elements” of its cost accounting and indirect cost charging practices. In other words, the government is looking at whether the company erred when it billed the government for overhead costs in support of the services it provides.

“To date, our internal and external audit processes have not identified any significant deficiencies or material weaknesses, or identified any significant erroneous cost charging,” the company’s statement said.

Booz said it “is cooperating with the government in these matters and expects to bring them to an appropriate resolution.” Company officials declined to comment beyond the press release.

Shares of Booz Allen stock were pummeled in after-hours…Read the full story from the Washington Business Journal.

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