by Ben Vernia | April 5th, 2011
The Department of Justice announced on April 5 that a German security company had agreed to pay the euro equivalent of $5.7 million to settle allegations that it defrauded the Arm on security contracts. According to DOJ’s press release:
Securitas GmbH Werkschutz has paid the United States 6,529,042 Euros (approximately $9.1 million) to settle allegations that the German company billed the Army, under contracts to provide security at U.S. Army installations in Germany, for guard hours not actually worked, the Justice Department announced today. The United States alleged that the overcharging violated the False Claims Act and brought counterclaims based on fraud in several actions that Securitas had filed against the Army in the Court of Federal Claims in Washington, D.C., seeking additional compensation under one of the contracts at issue, Securitas GmbH Werkschutz v. United States, Nos. 07-255/6/7C (Fed. Cl.)
Under the terms of the settlement agreement, Securitas paid the United States the 6,529,042 Euros to resolve its potential liability under the False Claims Act, other anti-fraud provisions and the common law. Securitas also agreed to dismiss its own claims in the Court of Federal Claims against the Army, totaling 4,449,658 Euros (approximately $5.7 million).
