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A contractor responsible for managing a tank farm holding millions of gallons of radioactive waste at the Hanford nuclear site has agreed to pay $6.5 million to settle allegations it overbilled the U.S. Department of Energy (DOE) for labor hours in violation of the False Claims Act, federal prosecutors announced Tuesday.

Washington River Protection Solutions LLC (WRPS), the contractor at the heart of the scandal, allegedly inflated labor charges from October 2017 through December 2024, billing the government for unproductive time — including hours spent watching TV, gaming, and socializing.

A Costly Pattern of Deception

While the cost-plus-award-fee contract allowed WRPS to be reimbursed for certain legitimate expenses, the federal government contends the company systematically abused this flexibility by padding labor hours. This conduct echoed previous allegations: WRPS paid $5.275 million in 2017 for similar fraudulent activity.

"As a result of its past record and recent conduct, WRPS has had to admit wrongdoing and now pays over twice what it took from DOE and the taxpayers," said Acting U.S. Attorney Richard R. Barker of the Eastern District of Washington. "This is appropriate, especially when the inflated labor charges stemmed from WRPS' failure to assign sufficient work."

Of the $6.5 million, prosecutors confirmed $3 million will go toward restitution. The whistleblower — a WRPS employee who filed a qui tam complaint in 2022 — will receive nearly $1.5 million as part of the settlement for bringing the misconduct to light.

Whistleblower Alleges Fraud Fueled by Idle Time

The lawsuit, supported by attorneys at Smith & Lowney PLLC and Teller Law, alleged that WRPS billed the DOE for hours employees spent idle, engaging in entertainment and personal activities during paid shifts. Even overtime, according to the complaint, was "almost as unproductive as regular work time."

"Workers at Hanford and other nuclear sites need to know they have rights and legal protection," said Meredith Crafton of Smith & Lowney. "These employees are doing dangerous, essential work. They should feel empowered to speak up and ensure accountability."

Crafton emphasized the importance of protecting whistleblowers not just from retaliation, but also ensuring they are fully compensated for the personal and professional toll of reporting fraud.

Legal Teams and Lingering Fallout

The U.S. Attorney's Office for the Eastern District of Washington, led by Tyler H. L. Tornabene, prosecuted the case on behalf of the government.

The whistleblower was represented by Knoll Lowney, Meredith A. Crafton, and Katelyn J. Kinn of Smith & Lowney PLLC, alongside Stephen A. Teller of Teller Law.

WRPS, for its part, was represented by Luke Meier and Shawn Wright of Blank Rome LLP, though the company declined to comment on the settlement as of Wednesday.

This latest enforcement action underscores the federal government’s scrutiny of contractors handling hazardous work at sensitive sites, especially when public trust and taxpayer funds are on the line.