A vice president for a Hanford contractor has been accused of taking more than $40,000 in illegal kickbacks.
Richard A. Olsen, vice president of finance for Mission Support Alliance, has agreed to pay about triple that amount, $124,440, to the federal government to settle civil allegations of accepting kickbacks from Lockheed Martin Corp., the Department of Justice said Monday.
Mission Support Alliance provides site-wide services at the Hanford nuclear reservation, including information technology services. It previously subcontracted IT services to a subsidiary of Lockheed Martin, which also was then a primary owner of Mission Support Alliance.
As part of the settlement, Olsen has agreed to cooperate with the ongoing investigation of the alleged fraud.
“Mr. Olsen did not admit any wrongdoing in connection with this investigation,” said his attorney, Mark Bartlett of Seattle. “He entered into a settlement to put an end to a long-term Department of Justice investigation.”
The Department of Justice alleged that Olsen received at least $41,480 in kickbacks from Lockheed Martin to improperly obtain or reward favorable treatment for the Lockheed Martin subsidiary.
Olsen helped draft and submit false statement to the Department of Energy regarding labor rates charged by Lockheed Martin and Lockheed Martin’s anticipated profit for providing IT services at Hanford, federal prosecutors in the Eastern Washington District office said.
DOE paid the full cost of the IT services provided by Lockheed Martin at Hanford.
Prosecutors alleged that Olsen was involved with submitting false and inflated claims to DOE between March 2010 and Feb. 21, 2012, and received kickbacks during that time.
At the time Olsen was a Lockheed Martin employee on loan to Mission Support Alliance as its chief financial officer. Lockheed Martin was the primary owner of Mission Support Alliance until January 2016, when Leidos purchased a major division of Lockheed, which included the Hanford contractor.
Mission Support Alliance no longer subcontracts most of its IT services.
The settlement agreement, signed by Olsen on Thursday and the Department of Justice on Monday, requires him to pay the settlement amount within five days.
“This settlement requires Mr. Olsen to pay back three times the amount he received from the alleged fraud and holds Mr. Olsen accountable for his actions,” said Joseph Harrington, U.S. attorney for the Eastern Washington District. “It also sends a strong message to those individuals who may engage in similar conduct.”
The DOE Office of Inspector General investigated the alleged fraud, he said.