March 24, 2005
Global Consulting Firm Agrees to $6.5 Million Civil Settlement in False Claims Case
The United States Attorney, District of Massachusetts announced that Arthur D. Little, Inc. (ADL), now known in Chapter 11 bankruptcy proceedings as Dehon, Inc., entered into a $6.5 million settlement agreement with the U.S. Attorney’s Office in Boston to resolve civil claims. ADL fraudulently billed 35 federal agencies by inflating its indirect costs and overhead charges on government contracts by an estimated $14 million between 1995 and 2000. DOT’s (FAA and RSPA) contracts held with ADL were valued at about $11 million. A federal bankruptcy judge approved the $6.5 million settlement agreement on March 15, 2005. This investigation was conducted jointly with DCIS, EPA-OIG, the U.S. Army CID, and the FBI, with assistance from DCAA.