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Conflict-of-Interest = False Claims Act Violation?

Date Published
Aug 08, 2008

In what appears to be a somewhat novel case, the government sued Science Applications International Corporation (SAIC) under the False Claims Act for failing to disclose conflicts of interest.  SAIC was awarded a contract by the Nuclear Regulatory Commission (NRC) to help the NRC draft a rule relating to the recycling of radioactive materials.  But SAIC, at the same time, had business relationships with other companies that would have been directly impacted by the proposed rule.  The theory of the False Claims Act case appears to have been that by failing to disclose that conflict, SAIC tricked the NRC into awarding the contract to SAIC or making payments to SAIC under that contract.

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