June 20, 2024 at Booz Allen Hamilton headquarters in McLean, Virginia.
Kevin Dietch | Getty Images News | Getty Images
Treasury Secretary Scott Bessent said Monday that all contracts between the Treasury Department and the consulting firm have been terminated. booze allen hamiltonAn employee leaked the tax records of President Donald Trump and billionaires Jeff Bezos and Elon Musk to the media.
Booz Allen Hamilton’s stock price fell 8% following the Treasury Department’s announcement.
The department announced that it currently has 31 separate contracts with Booz Allen Hamilton with total annual expenditures of $4.8 million and total obligations of $21 million.
“President Trump has committed his Cabinet to root out waste, fraud, and abuse, and canceling these contracts is an essential step in strengthening the American people’s trust in our government,” Bessent said in a statement.
“Booze Allen failed to take adequate safeguards to protect sensitive data, including sensitive taxpayer information, to which it had access through its contract with the Internal Revenue Service,” he said.
The department said that from 2018 to 2020, Booz Allen employee Charles Edward Littlejohn “stole and compromised confidential tax returns and filing information for hundreds of thousands of taxpayers.”
According to the IRS, the data breach affected approximately 406,000 taxpayers.
Littlejohn, 40, pleaded guilty in October 2023 to one count of disclosing tax return information.
He admitted leaking Trump’s tax records to the New York Times. He also admitted to leaking records about wealthy individuals to the news outlet ProPublica.
He was sentenced in January 2024 to a maximum of five years in prison.
CNBC has reached out to Booz Allen for comment.
