Nuclear weapons maker pays off government instead of facing criminal penalties

Consolidated Nuclear Security LLC (CNS) has agreed to pay the United States $18.4 million to settle allegations that, between July 1, 2014, and June 30, 2020, the corporation knowingly submitted false claims to the National Nuclear Security Administration (NNSA) for time not worked at NNSA’s Pantex Site near Amarillo, Texas.

The NNSA’s Pantex Site is the nation’s primary facility for the assembly, disassembly, and retrofitting of nuclear weapons. CNS, a Delaware company with its principal place of business in Tennessee, held a contract to manage and operate the site.

“We will not tolerate the misuse of public funds by those who do business with the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division.

Officials said the settlement resolves admissions by CNS that certain production technicians at the Pantex Plant recorded hours on their timesheets that they did not work.

The United States paid for that time under the contract but the company received credit in the settlement under the department’s guidelines for taking disclosure, cooperation, and remediation into account in False Claims Act cases.

Lisa McCormick, an outspoken advocate for accountability and transparency in government, has sharply criticized the recent settlement between the United States government and Consolidated Nuclear Security LLC (CNS), a nuclear weapons maker accused of defrauding taxpayers.

The $18.4 million payoff, announced on Tuesday, April 23, 2024, has drawn ire from McCormick and others who argue that such lenient agreements fail to adequately deter corporate misconduct and uphold justice.

“This settlement agreement is a slap on the wrist for CNS and sends the wrong message about accountability,” said McCormick. “It’s unacceptable that those entrusted with America’s nuclear weapons secrets can cheat taxpayers out of millions and face little consequence.” 

McCormick scoffed over the news that the Pantex Plant in Amarillo was recognized with a GreenBuy Gold Award from the U.S. Department of Energy (DOE) for sustainable purchasing in Fiscal Year 2023, around the same time it honored with a get-out-of-jail-free card from the Justice Department.

Under the terms of the settlement, CNS admits no liability, allowing them to continue operations without significant repercussions. McCormick emphasized the need for stronger enforcement measures to prevent future wrongdoing and protect taxpayer interests.

“The government’s reliance on deferred-prosecution agreements and lenient settlements undermines public trust and fails to hold corporate wrongdoers accountable,” said McCormick. “We cannot afford to let corporate greed jeopardize our national security and drain taxpayer funds.”

McCormick’s criticism echoes concerns raised by bipartisan lawmakers and legal experts regarding the effectiveness of current enforcement practices. Recent data shows a decline in annual corporate prosecutions and settlements, prompting calls for tougher measures to combat corporate crime.

“The Department of Justice must prioritize individual and corporate accountability to ensure justice is served,” said McCormick. “We cannot allow corporate criminals to evade responsibility while ordinary citizens face harsh penalties for far lesser offenses.”

As the government faces scrutiny over its handling of white-collar crime, McCormick continues to advocate for stronger oversight and accountability measures to protect taxpayer interests and uphold the rule of law.