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Pinkerton Government Services Pays $1 Million for False Claims

By Clea

Pinkerton Government Services (PGS), a company that specializes in security, fire and emergency services for government agencies and contractor companies, has agreed to pay just over $1 million in order to settle allegations that it overbilled the government on health insurance costs.

PGS, a subsidiary of the large security firm Securitas Security Services, was providing security services for a Department of Energy installation between 2001 and 2005. During that time, the company was reimbursed by the DOE for all costs, including the costs of providing health insurance to employees, according to a statement by the Department of Justice. PGS allegedly overcharged for those health care costs.

The case was brought to the attention of the DOJ by two whistleblowers who filed a qui tam suit against the company under the False Claims Act. The two whistleblowers will receive a total of $172,805 from the settlement, according to the DOJ.

Full post as published by Ethisphere Blog - Good. Smart. Business. Profit. on October 22, 2009 (boomark / email).