Hanford Mission Integration Solutions (HMIS), a federal contractor, has agreed to pay $3.45 million to resolve allegations that it overcharged the U.S. Department of Energy (DOE) for labor hours at the Hanford Site in Washington. The payment follows claims that HMIS management knowingly allowed and failed to prevent inflated labor charges under its multi-billion dollar contract with DOE.
According to court filings, HMIS was reimbursed by DOE for claimed allowable costs, including labor. It is alleged that from August 17, 2020, to September 30, 2025, HMIS submitted false claims by instructing employees to record full shifts even when they were not given enough work for the entire period. As part of the settlement agreement with the U.S. Attorney’s Office, HMIS admitted that it received reimbursement for excessive idle time and sometimes did not assign sufficient work to its personnel. Of the total settlement amount, $1,725,000 will serve as restitution.
First Assistant U.S. Attorney S. Peter Serrano commented on the resolution: “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.”
The investigation began after an HMIS employee filed a qui tam complaint under seal in December 2021 in federal court under provisions of the False Claims Act (FCA). A second sealed complaint was filed by this whistleblower—known as a relator—making further allegations against HMIS in May 2024. Under FCA procedures, such complaints prompt government review and possible intervention; whistleblowers can receive a portion of recovered funds.
The settlement resolves both lawsuits brought by this relator, who will receive $793,500 plus attorney fees paid by HMIS.
Serrano expressed appreciation for whistleblower actions: “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. I hope the public sees this and understands that when viable information is reported to law enforcement, whether that’s through the filing of an under seal qui tam complaint or stepping forward as a witness, they allow the Department of Justice to do its job and hold fraudsters accountable” continued Serrano.
Assistant Inspector General for Investigations Lewe Sessions added: “The Office of Inspector General remains committed to ensuring the integrity of the Department’s contractors by detecting and holding accountable those who engage in schemes to defraud the Government. The American taxpayers should never be responsible for the costs associated with work that was not performed. This settlement is the result of a collaborative effort with our Office of Investigation’s team and the U.S. Attorney’s Office who have repeatedly demonstrated their dedication to ensure public funds are used for the mission-related purposes for which they are intended,” stated Assistant Inspector General for Investigations Lewe Sessions. “I would like to extend my deep gratitude to our partners at the U.S. Attorney’s Office for pursuing this matter as we remain devoted to partner with them to aggressively investigate those who seek to defraud Department programs and American taxpayers.”
The case was jointly investigated by prosecutors from Assistant United States Attorneys Frieda K. Zimmerman, Jacob E. Brooks, Molly M.S Smith, Tyler H.L Tornabene along with staff from DOE’s Office of Inspector General.
