Department of Justice closes criminal investigation into Booz Allen Hamilton
The Department of Justice has shuttered its criminal investigation into Booz Allen Hamilton, the company revealed on Friday.
The federal contractor in its report for the financial year 2021 said the criminal probe had been abandoned but that civil DOJ and SEC investigations into the company are still pending.
“I am pleased to report that the Department of Justice has closed the investigation that we first disclosed in June 2017,” said Booz Allen President and CEO Horacio Rozanski, speaking on the company’s fourth-quarter conference call.
Booz Allen in 2017 disclosed that it was under criminal and civil investigation by the DOJ in relation to accounting and indirect cost charging practices relating to its government work.
“The company may receive additional regulatory or governmental inquiries related to the matters that are the subject of the DOJ’s investigation,” Booz Allen wrote in a regulatory filing last week. “In accordance with the company’s practice, the company is cooperating with all relevant government parties.”
The federal contractor said also that it has been in contact with other regulatory agencies and bodies including the SEC, and it is working with lawyers to respond to probes that remain ongoing.
It comes as Booz Allen on Friday reported a 14.7% year-on-year rise in operating profits for the fourth quarter of fiscal year 2021, as well as earnings per share of $1.43, up from $0.98 in the prior-year period. The company’s net income rose by 43.4% year on year to $199.2 million.
Despite COVID-19 headwinds, the company said it had been able to preserve its profitability in part through strong cost management efforts and reductions in travel expenses.
Speaking on its Q4 earnings call, CEO Rozanski noted that growth at Booz Allen’s civil business segment had slowed during the second half of 2020.
“This was largely related to a pause on a large cyber program due to funding availability, which occurred in the third quarter and continued into the fourth quarter.
“Given the importance and criticality of this program for the client, we believe work will ramp up again in the coming quarters,” the executive added.