ALEXANDRIA, Va. – Sierra Nevada Company, LLC (SNC), headquartered in Sparks, Nevada, agreed to pay $7.75 million to settle False Claims Act allegations arising from its employment of a government official who, while employed by both SNC and the government, participated personally and substantially in three government contracts awarded to SNC.
From July 2019 to June 2020, SNC retained Michael Henry, a Department of War employee with the Joint Staff/J6, as a consultant. As a Joint Staff/J6 employee, Henry was involved in the award of three different government contracts to SNC: (1) a subcontract awarded by the Army in 2019, (2) an indefinite quantity/indefinite delivery contract awarded by the General Services Administration in 2020, and (3) task orders under an indefinite quantity/indefinite delivery contract awarded by the Special Operations Command in 2018.
After beginning his employment with SNC, Henry continued to serve as a Joint Staff/J6 employee. In that capacity, Henry continued participating personally and substantially in the contracts by evaluating and obtaining approvals for SNC’s products. While serving as an SNC consultant, Henry also participated personally and substantially in the contracts on SNC’s behalf by recommending SNC’s products for purchase.
The settlement announced today resolves allegations that SNC submitted or caused the submission of false claims, false statements, and false certifications in connection with the contracts. The United States alleged that SNC’s employment of Henry and Henry’s participation in the contracts on SNC’s behalf constituted an organizational conflict of interest under the Federal Acquisition Regulation. The United States further alleged SNC knowingly made, or knowingly caused to be made, material false statements, material false certifications, and material omissions concerning the nonexistence of an organizational conflict of interest that induced the award of the contracts.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Department of Defense Office of Inspector General Defense Criminal Investigative Service, the Department of the Army Criminal Investigation Division’s Fraud Field Office, and the General Services Administration’s Office of Inspector General.
This matter was investigated by Assistant U.S. Attorney Tanya Kapoor.
In 2025, Henry pled guilty to a one-count criminal indictment charging him with acts affecting a personal financial interest.
The civil claims settled are allegations only; there has been no determination of civil liability.
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