German Security Company Pays U.S. 6,529,042 Euros to Settle False Claims Allegations

WASHINGTON – 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).

“We won't tolerate military contractors who overcharge the American taxpayers for services,” said Tony West, Assistant Attorney General of the Justice Department’s Civil Division. “This case illustrates that the United States will pursue the full range of potential remedies for false or fraudulent claims to ensure defense contractors are dealing fairly with the American people.”

The Army Criminal Investigations Command and Defense Criminal Investigative Service participated in the investigation of this matter, with the assistance of the Defense Contract Audit Agency and the German criminal police.