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About POGO's Federal Contractor Misconduct Database (FCMD)
The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Ranking: 100
G4S PLC
G4S (formerly known as Group 4 Securicor) provides manned and electronic security and cash services. Headquartered in England, it operates in over 100 countries and employs approximately 470,000 people. G4S owns the Wackenhut Corporation, which provides security services in North America.
Federal Contract $: $ 85.5m
Total Number of Instances: 24
Total Misconduct dollar amount: $ 73.7m
- Annual Report
- Ethics Page
- Hoovers Profile
- Lobbying Information
- Political Activity (Wackenhut)
- Press Page
- Website
- Contracting Information
Instances of Misconduct
1. Gordon v. ArmorGroup North America
James Gordon, former director of operations at ArmorGroup North America (AGNA) (owned by Wackenhut Services, Inc.), filed a False Claims Act whistleblower retaliation lawsuit alleging that AGNA fired him for exposing deficiencies and illegalities relating to AGNA’s contracts with the U.S. State Department to provide security at the U.S. Embassy in Kabul, Afghanistan and at the U.S. Naval base in Bahrain. In July 2011, AGNA and its affiliates paid $7.5 million to resolve the lawsuit. The settlement resolved claims that in 2007 and 2008, AGNA guards violated the Trafficking Victims Protection Act (TVPA) by visiting brothels in Kabul, and that AGNA’s management knew about the guards’ activities. The settlement also resolved allegations that AGNA misrepresented the prior work experience of 38 third country national guards it had hired to guard the Embassy, and that AGNA failed to comply with certain Foreign Ownership, Control and Influence mitigation requirements on the embassy contract, and on a separate contract to provide guard services at the Naval base in Bahrain. See related G4S PLC instance, “Sauer et al. v. ArmorGroup North America.”... more»
2. Bussy v. The GEO Group (Strip Search Class Action)
Stephen Dimitri Bussy filed a nationwide civil rights class action lawsuit under 42 U.S.C. § 1983 challenging the practice of strip searches conducted in detention facilities operated by The GEO Group Inc. (f/k/a Wackenhut Corrections Corp.). In July 2007, Bussy was arrested and charged with DUI and transported to a jail in Pennsylvania operated by The GEO Group, where he was strip searched. The plaintiffs allege that The GEO Group’s policy of strip searching all pre-trial detainees regardless of the crime charged and in the absence of a reasonable suspicion that the detainee possesses weapons or contraband violates the Constitution. In May 2010, the parties settled the lawsuit for nearly $3 million. The agreement covers up to 10,000 inmates in six facilities who were subjected to strip searches upon admission between January 2005 and January 2008.... more»
3. Tapia v. The GEO Group (Death at Val Verde County Jail)
LeTisha Tapia died at the Val Verde County jail in Texas in July 2004, a facility operated by The GEO Group Inc. (f/k/a Wackenhut Corrections Corp.). Shortly before her death, Tapia reported that she had been raped and assaulted by male inmates who were housed in the same cell block. Tapia’s family sued The GEO Group and several of its guards. In March 2007, the company reportedly settled with the family for $200,000.... more»
4. Sauer et al. v. ArmorGroup North America
James Sauer and Peter Martino, former employees of ArmorGroup North America (AGNA) (owned by Wackenhut Services, Inc.), filed a False Claims Act whistleblower retaliation lawsuit alleging that AGNA fired them for exposing the company’s misrepresentations regarding its experience, staffing capabilities, equipment and facilities with regard to its contract with the U.S. State Department to provide security at the U.S. Embassy in Kabul, Afghanistan. The parties settled the case out of court pursuant to a confidential agreement. See related G4S pending instance, “Gordon v. ArmorGroup North America.”... more»
5. False Claims at Savannah River Site
Wackenhut Services, Inc. (WSI) agreed to pay the United States $650,000 to resolve False Claims Act allegations involving its contracts to provide security services at the Savannah River Site and other facilities. The government alleged that, from 2001 through 2005, WSI submitted to the Department of Energy hundreds of thousands of dollars in unallowable expenses for such things as a charter boat cruise, a Polynesian drum show, and alcohol for WSI employees.... more»
6. Hiring Discrimination in Aurora, CO
Wackenhut Corp. (doing business as G4S Wackenhut) entered into a consent decree with the U.S. Department of Labor’s Office of Federal Contract Compliance Programs to settle accusations of discrimination in the hiring of African-Americans from January 1, 2002 through December 31, 2003. As part of the settlement, Wackenhut agreed to pay $290,000 in back pay and interest on behalf of 446 rejected African-Americans who applied for positions as security officers at its Aurora, Colorado facility.... more»
7. Miami-Dade County Overbilling (Criminal Prosecutions)
Eight former Wackenhut employees were arrested and charged with violating the Racketeer Influenced and Corrupt Organizations (RICO) Act related to the overbilling of Miami-Dade County on a contract to provide security services for the county’s public transportation system (see G4S instance “Miami-Dade County Transit Security Officers Contract Audit”). The defendants were accused of participating in a scheme between 2002 and 2005 to submit falsified billing records to the county in order to fulfill Wackenhut’s contractual staffing requirements. Prosecutors dropped charges against Rene Pedrayes and Eduardo Esquivel, while Roberto Alvarado, Nathan Holmes, William Acosta, Roberto Pereira, and Elijah Pendleton pleaded guilty to grand theft. Erika Reyan's case was dismissed in 2012 because the statute of limitations had run out.... more»
8. State Department Inspector General Evaluation of Kabul Embassy Security Contract
A September 2010 report by the U.S. State Department Office of Inspector General (OIG) identified numerous problems with the agency’s contract with ArmorGroup North America (AGNA) (owned by Wackenhut Services, Inc.) to provide security at the U.S. Embassy in Kabul, Afghanistan. The deficiencies identified by the OIG include AGNA hiring guards without verifiable experience, training, or background checks, not being able to account for 101 government-furnished weapons that had been missing since 2007, and allowing individuals who were not properly screened to have unescorted access to government facilities containing sensitive materials.... more»
9. Back Pay Due Employees at Independence National Historical Park
Wackenhut Services Inc. informed its employees at the Independence National Historical Park in Philadelphia, Pa. that they will be receiving back pay owed to them after an employee, Officer Charles Wilson, filed a wage and hour complaint with the U.S. Department of Labor. Wilson accused Wackenhut of shortchanging them of at least 14 cents an hour in fringe benefits. Wackenhut acknowledged the employees had not been paid their proper rate since October 1, 2006.... more»
10. Mozambique Overtime Pay Violations
It was reported that Mozambique's Administrative Tribunal rejected Wackenhut’s appeal of an order by the Labor Ministry to pay over 11 years of overtime to hundreds of its security guards. Wackenhut admitted that between 1994 and 2005 it had not paid any overtime to the guards, who had been working 12 hour shifts, four hours more than the standard eight hour day. In May 2006, an arbitration panel ruled that Wackenhut had to pay overtime, but found the amount the workers claimed they were owed – 33.9 billion old meticais (approximately $1.3 million) – had not been proved. However, since Wackenhut did not provide a basis on which an alternate amount could be calculated, the Ministry demanded that Wackenhut pay the 33.9 billion meticais.... more»
11. Jail Mismanagement
In 1999, it was reported that the state of Texas terminated Wackenhut's $12 million a year contract to run a jail in Travis County due to mismanagement that eventually led to several guards being charged with sexually assaulting female inmates. Over a period of two years, the state levied $625,000 in penalties due to chronic staffing shortages at the facility. A state audit showed that the jail barely kept the minimum number of guards required in the contract.... more»
12. Trimble v. Wackenhut Corp. (Fraudulent Overbilling)
Michelle Trimble, a former Wackenhut employee at Miami-Dade County's Juvenile Assessment Center, filed a false claims lawsuit alleging Wackenhut submitted inflated bills for its guard services at the facility. Trimble alleged Wackenhut engaged in similar fraudulent billing practices in other county contracts, costing the county up to $3.5 million a year. In February 2010, Wackenhut agreed to settle the case with Miami-Date County and Trimble for $7.5 million. See related G4S instance, “Miami-Dade County Transit Security Officers Contract Audit.”... more»
13. Lowe v. The Wackenhut Corp. (Misconduct at a a Coke County, TX Juvenile Facility)
According to media accounts, the family of an inmate at a Wackenhut-managed juvenile justice center for delinquent girls in Coke County, Texas filed suit against Wackenhut, alleging widespread, systematic sexual assault at the facility. The suit was later joined by eleven other girls who alleged similar mistreatment. The parties settled the lawsuit, agreeing to keep the terms confidential.... more»
14. Abuse and Neglect at Louisiana Juvenile Facility
The Department of Justice settled a lawsuit with the state of Louisiana and Wackenhut over allegations of excessive force and neglect at the company’s Jena Juvenile Justice Center. The government alleged juveniles were being subjected to "dangerous and life-threatening conditions" at the center. The DOJ filed the emergency lawsuit under the Violent Crime Control and Law Enforcement Act of 1994. In the days that followed, Wackenhut turned over control of the facility to the state, which agreed to implement major reforms at the facility.... more»
15. Security Breaches at DHS Headquarters
In April 2006, Congressional Quarterly reported that Wackenhut lost its contract to provide security services at the Department of Homeland Security's Washington, D.C. headquarters following a mishandled anthrax threat and allegations of poor training and extensive security breaches. DHS sought new bidders for the contract, worth an estimated $9 million a year.... more»
16. Civil Rights Conspiracy and Obstruction at a NM Corrections Facility
Three former Wackenhut guards were found guilty of civil rights conspiracy and obstruction charges at the Lea County Corrections Facility in Hobbs, New Mexico. The jury found the defendants guilty of willfully assaulting an inmate by repeatedly kicking him in the head and causing bodily injury. The jury also found the defendants guilty of falsifying reports and lying to investigators to explain the incident.... more»
17. Toon v. The Wackenhut Corp. (Misconduct at a Coke County, TX Juvenile Facility)
Several young women sued Wackenhut after they were allegedly sexually, physically, and mentally abused by employees of Wackenhut-owned and operated Coke County Juvenile Justice Center in Texas. The case was settled for $1,500,000 in October 1999.... more»
18. Labor Practices in Southern Africa
A report published by a global fact-finding delegation criticized Group 4 Securicor's labor practices in southern Africa. The report detailed instances of racism, disparate treatment of black and white employees, low pay and poor working conditions in South Africa, Malawi and Momzambique.... more»
19. De La Rosa v. Wackenhut (Wrongful Death)
Gregorio De La Rosa, an inmate at a prison in Raymondville, Texas operated by Wackenhut Corrections Corp., was beaten to death in the prison yard by two other inmates in April 2001. His family sued Wackenhut and the prison warden for negligence, and a jury awarded them $47.5 million ($47 million of which was assessed against Wackenhut).... more»
20. Mozambique Labor Violation
According to media accounts, the Mozambican Labor Ministry, through the Labor General Inspectorate, fined a G4S subsidiary the equivalent of $46,000 for hiring nine illegal foreign workers. The illegal workers included Portuguese and South African nationals holding positions of shift and project managers.... more»
21. Gutierrez v. Wackenhut (Negligence)
In April 2007, a charter bus owned and operated by Wackenhut collided with a car driven by Jesse James Gutierrez at the United States Port of Entry near Del Rio, Texas. Gutierrez filed suit against Wackenhut and an employee for damages resulting from injuries he sustained in the collision. The jury found in Gutierrez’s favor and awarded him $1.2 million in damages.... more»
22. Data Theft Reimbursement / Billing Irregularity (Nashville, TN)
On Christmas Eve 2007, two laptop computers containing voters’ personal data were stolen from the Davidson County Election Commission in Nashville, Tenn., where Wackenhut provides security services. Several days later, the city of Nashville demanded Wackenhut Corp. pay $109,000 in damages arising from the theft and to reimburse the city for the cost of sending out letters to each of the 337,000 voters whose data was stored on the computers. During the city’s investigation, auditors also allegedly discovered that, for at least three months at the end of 2007, Wackenhut had billed the city for guard services at the building during times when records show no guards were on duty. In May 2008, the city asked Wackenhut to refund a total of over $840,000, encompassing audit fees, mailing expenses, the cost of providing identity-theft protection to more than 56,000 voters, and $21,575 for security services the city claims Wackenhut never provided. The company has reportedly paid back $22,000 in overbillings, but the city still seeks restitution for the $773,000 cost of buying identity protection for every registered voter and sending out letters to voters, along with the $50,000 cost of auditing Wackenhut after the incident. The city filed suit against Wackenhut in October 2008. In July 2009, the city and Wackenhut settled for $400,000.... more»
23. Miami-Dade County Transit Security Officers Contract Audit
According to an audit conducted by Miami-Dade County, Wackenhut Corp. billed Miami-Dade Transit over $6 million over three years for work its security guards did not perform. The audit also found Wackenhut owes the county an additional $233,500 in liquidated damages and other miscellaneous chargebacks. See related G4S PLC instance, “Trimble v. Wackenhut Corp. (Fraudulent Overbilling).”... more»
24. Holston Army Ammunition Plant Back Pay
About 280 current and former Wackenhut Services Inc. fire and security contract workers at the Holston Army Ammunition Plant (HAAP) in Kingsport, Tennessee were awarded approximately $2.5 million in back pay dating back to 1999. The workers filed a complaint with the Department of Labor alleging their pay and benefits were too low and in violation of the McNamara-O’Hara Service Contract Act of 1965 (SCA), which requires federal contractors and subcontractors to pay service employees no less than the prevailing wage and benefit rates found in the locality. At the time of the decision, the Army stated the back pay award would ultimately be Wackenhut’s responsibility, while Wackenhut claimed that federal procurement regulation allowed it to bill the Army for the back pay.... more»
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