The consulting giant at the center of the Trump tax-return leak has been dropped by the Treasury Department. Secretary Scott Bessent on Monday said the department has canceled all of its contracts with Booz Allen Hamilton after a former employee stole and leaked confidential tax data for President Trump and as many as 400,000 other taxpayers. The firm had 31 active Treasury contracts worth about $4.8 million a year and $21 million in total obligations, CNBC reports; shares fell more than 10% after the announcement.
The case centers on Charles Edward Littlejohn, a former Booz Allen employee who admitted turning Trump's tax records to the New York Times and files on other wealthy Americans to ProPublica. Littlejohn, 40, pleaded guilty in October 2023 to a single count of unauthorized disclosure of tax return information and received the maximum sentence of five years in prison in January. Bessent said the cancellations are part of an effort to crack down on "waste, fraud, and abuse" and to restore public trust in how the government handles sensitive information.
Treasury officials said Booz Allen "failed to implement adequate safeguards" to protect taxpayer data it accessed through work with the IRS. A spokesperson told the Hill that Booz Allen supported the government investigation and "has zero tolerance for violations of the law." The statement said the leak involved government systems that Booz Allen lacks the capability to monitor.
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