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Ten managers indicted in Hanford timecard scheme

Thu., March 28, 2013

RICHLAND – A federal grand jury has indicted 10 current or former managers and supervisors for a contractor at the nation’s most contaminated nuclear site, accusing them of enabling timecard fraud there.

Federal authorities have been investigating accusations of fraud at south-central Washington’s Hanford Nuclear Reservation for several years.

The federal government built the site in the 1940s as part of the top-secret Manhattan Project to build the atomic bomb. Today, it is the nation’s most contaminated nuclear site, with cleanup expected to last decades and cost billions of dollars.

CH2M Hill Hanford Group Inc. held a contract from 1999-2008 to clean out radioactive waste from underground tanks at the site, which produced plutonium for the nation’s nuclear weapons arsenal beginning in World War II and through the Cold War.

Earlier this month, the company agreed to pay $18.5 million to settle civil and criminal allegations of defrauding taxpayers in a timecard scheme in which workers routinely overstated the hours they worked. Nine people have already pleaded guilty in the scheme, and federal officials have said some managers condoned the practice.

The indictment filed in U.S. District Court against 10 managers and supervisors claims the company failed to follow a recommendation in a 2004 independent audit to install new timecard equipment to verify that employees worked the hours they claimed, the Tri-City Herald reported Wednesday.

A spokesman for CH2M Hill’s parent company, Denver-based CH2M Hill Companies Ltd., did not immediately respond to a request for comment Wednesday.

The counts include conspiracy, submission of false claims, wire fraud, violation of the anti-kickback act and document alteration.

Two of those indicted no longer work at Hanford, the newspaper reported.

The eight others still work at the Hanford site for current contractor Washington River Protection Solutions, company spokesman Jerry Holloway confirmed. He declined to comment further.

CH2M Hill no longer holds the contract for tank waste cleanup, but it is under contract to clean up another section of the 586-square-mile Hanford site.

As part of its settlement, the company agreed to pay for an independent monitor and monitoring system to ensure it takes appropriate corrective actions with its new contract.

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