SEC to investigate KBR’s fraud-cover-up practices

An investigation will be performed to determine how extensively the largest U.S. government contractor aimed to cover up allegations of fraud.

In February, a former employee sued Halliburton Co. and its former subsidiary, Kellogg Brown & Root (KBR) for violating the federal False Claims Act and other regulations that shield whistleblowers. The resulting case has now been taken up by the Securities and Exchange Commission which has opened an investigation into the groups.

The lawsuit centers around claims that KBR requires employees seeking to report fraud sign confidentiality agreements which prevented them from discussing their claims with prosecutors and investigators, according to The Washington Post. Those involved on the plaintiff side say that collecting confidentially statements from employees has been a routine operation of KBR’s for some time. The investigation will evaluate how extensively KBR has used  those statements to cover up fraud allegations.

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Juliana Kenny

Juliana Kenny is a contributor to, covering a range of topics including patent litigation, conflict mineral laws, executive compensation, and antitrust regulation. Juliana earned B.A.s...

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