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Tuesday, November 13, 2012

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Security Contractor to Pay $1 Million
To Resolve Allegations of Overbilling at the Library of Congress
-Claims Involved Work at Facilities on Capitol Hill-

     WASHINGTON – Securiguard, Inc. will pay the United States government $1 million to resolve allegations that the company submitted false claims for payment pursuant to contracts the firm held with the Library of Congress, U.S. Attorney Ronald C. Machen Jr. and Library of Congress Inspector General Karl W. Schornagel announced today.

     Under contracts executed in 2003 and 2008, Securiguard provided security personnel to fill stationary and “roving” guard posts at the Library of Congress facilities on Capitol Hill and at Fort Meade, Md.  Securiguard’s contracts with the Library of Congress specified that the company was responsible for providing relief coverage for its personnel assigned to guard posts, so that the Library of Congress would not be billed directly for relief coverage. 

     An investigation by the Library of Congress Office of the Inspector General led to allegations that the company, based in McLean, Va., routinely scheduled guards assigned to roving posts to provide relief services during their regular shifts. This practice occurred over a number of years, according to the government, resulting in overbilling to the Library of Congress. The agreement covers claims submitted for the years 2008 through early 2011.

     “Companies that do business with the government have a special responsibility to treat their customers – the American taxpayers – with honesty and care,” said U.S. Attorney Machen. “When government contractors fail to adhere to their obligations, we will hold them accountable.  This settlement reaffirms our commitment to recovering the losses the government sustains from being overcharged.”

     “The Library of Congress Office of the Inspector General continues to work with its partners at the Department of Justice and other federal investigative agencies to combat fraud, waste, and abuse,” said Inspector General Schornagel.

     The claims settled by this agreement are allegations only, and there has been no determination of liability. The agreement is neither an admission of liability by Securiguard nor a concession by the United States that the claims are not well-founded. The parties agreed to resolve the matters without litigation.

     In announcing the agreement, U.S. Attorney Machen and Inspector General Schornagel commended the work of those who investigated the case for the Inspector General’s Office, including Kenneth R. Keeler, former Assistant Inspector General for Investigations; Special Agents Hugh D. Coughlin and Pamela DeGeorge-Hawe, and Analyst Jennifer R. Bosch. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Jennifer A. Short.





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