Wise Services / Savannah River MOX false invoicing case
Risk Mechanism
Alleged false invoices for undelivered construction materials, combined with kickback payments and weak certification controls, enabled overbilling during project execution.
Case Summary
In 2013, Wise Services, Inc. agreed to settle U.S. Department of Justice False Claims Act allegations related to work at the Savannah River MOX fuel fabrication facility in South Carolina. The Department alleged that the company submitted, or caused others to submit, false invoices for millions of dollars in non-existent construction materials and paid improper kickbacks.
Risk Lesson
This case demonstrates how false invoicing for construction materials, combined with kickback arrangements and weak certification controls, can inflate project costs during execution. It highlights warning signs such as claims for materials that cannot be independently verified, inflated or unsupported quantities, poor reconciliation between invoices and site records, and payment approvals made without reliable confirmation of delivery.
Reference
U.S. Department of Justice. (2013). Ohio Company Settles False Claims Act Allegations of Billing for Non-Existent Construction Materials. Available from: https://www.justice.gov/archives/opa/pr/ohio-company-settles-false-claims-act-allegations-billing-non-existent-construction-materials