Booz Allen: SEC also conducting investigation

By Marjorie Censer / November 6, 2017 at 12:45 PM

Booz Allen Hamilton said today it has been notified the Securities and Exchange Commission is conducting an investigation expected to cover similar ground as a Justice Department investigation already underway.

In June, the company disclosed the Justice Department is conducting a civil and criminal investigation in connection with Booz Allen's cost accounting and indirect cost charging practices with the U.S. government. In August, the company's chief executive said the investigation was more likely to last years than months.

In an SEC filing today, Booz Allen says it "has also been in contact with other regulatory agencies and bodies, including the Securities and Exchange Commission, which recently notified the Company that it is conducting an investigation that the Company believes relates to matters that are also the subject of the DOJ's investigation.

"The Company may receive additional regulatory or governmental inquiries related to the matters that are the subject of the DOJ's investigation," the filing adds. "In accordance with the Company's practice, the company is cooperating with all relevant government parties."

Booz Allen also notes in the filing it has hired an experienced law firm to represent it.

"The total cost associated with these matters will depend on many factors, including the duration of these matters and any related findings," the filing reads. "At this stage, the Company is not able to reasonably estimate the expected amount or range of cost or any loss associated with these matters."

In a call with analysts this morning, Lloyd Howell, Booz Allen's chief financial officer, said the contractor won't comment on the costs of the investigation.

Meanwhile, Booz Allen also today reported sales in its most recent quarter reached $1.5 billion, up close to 11 percent from the same three-month period a year earlier. The company's quarterly profit hit $70.9 million, up from $62.8 million the prior year.

Booz Allen's headcount during the quarter totaled 24,225, up from 22,758 a year earlier.