Booz Allen Hamilton dives after Treasury Department cancels contracts over leak
Large defense-centric government consulting firm Booz Allen Hamilton dove Monday after the US Treasury Department announced it was canceling all its contracts with the firm, citing a former employee who pleaded guilty to leaking tax information about President Donald Trump and thousands of the country’s richest people to media outlets like The New York Times and Propublica between 2018 and 2020.
The man, Charles Edward Littlejohn, was sentenced to five years in prison in January 2024.
The US government accounts for nearly all revenues generated by Booz Allen, with more than 70% coming from defense and intelligence clients as of its most recent earnings report. The remainder comes from civil clients, a division that includes the Treasury.
The Treasury Department said it canceled all 31 contracts it had with the company, which were worth a total of $21 million.
“Booz Allen failed to implement adequate safeguards to protect sensitive data, including the confidential taxpayer information it had access to through its contracts with the Internal Revenue Service,” Treasury Secretary Scott Bessent said in a statement.
Just last week, management had raised its annual profit outlook after reporting better-than-expected third-quarter earnings.
The man, Charles Edward Littlejohn, was sentenced to five years in prison in January 2024.
The US government accounts for nearly all revenues generated by Booz Allen, with more than 70% coming from defense and intelligence clients as of its most recent earnings report. The remainder comes from civil clients, a division that includes the Treasury.
The Treasury Department said it canceled all 31 contracts it had with the company, which were worth a total of $21 million.
“Booz Allen failed to implement adequate safeguards to protect sensitive data, including the confidential taxpayer information it had access to through its contracts with the Internal Revenue Service,” Treasury Secretary Scott Bessent said in a statement.
Just last week, management had raised its annual profit outlook after reporting better-than-expected third-quarter earnings.
