Treasury Secretary Scott Bessent said Monday that all contracts between the Treasury Department and the consulting firm have been terminated. booze allen hamiltonemployees 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 more than 10% 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.
Horacio Rozanski, CEO of Booz Allen Hamilton Holding Corporation, speaks to Bloomberg TV in Washington, DC, USA on Tuesday, March 18, 2025.
Stephanie Reynolds | Bloomberg | Getty Images
“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 between 2018 and 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.
“We have consistently condemned in the strongest possible terms the actions of Charles Littlejohn, who was active at the company several years ago,” Booz Allen said in a statement Monday.
“Booze Allen has zero tolerance for violations of the law and operates under the highest ethical and professional guidelines. When Littlejohn’s criminal conduct occurred more than five years ago, it took place on government systems, not Booz Allen’s systems,” the company said.
“Booze Allen does not store taxpayer data on its systems and does not have the ability to monitor activity on government networks,” the statement said. “Mr. Booz Allen fully supported the U.S. government’s investigation, and the government expressed its appreciation for our assistance that led to the prosecution of Mr. Littlejohn. We look forward to discussing this matter with the Treasury Department.”
