United States Investigations Services Inc (USIS), the private firm who vetted Edward Snowden before he joined the National Security Agency (NSA) as a contractor in 2009, has reached a settlement with the US justice department worth at least $30m (€27m).
The justice department had claimed that the firm failed to perform quality control reviews of its background investigations regarding potential employees.
The settlement resolves claims that were made in a whistleblower lawsuit which was filed in 2011 - this was separate from the USIS reviews of Edward Snowden and Aaron Aexis, a technology contractor who carried out a mass shooting at Washington's Navy yard, killing 12 people.
USIS's parent company, Altegrity Inc filed for Chapter 11 bankruptcy in February of this year - this settlement was struck as part of that process.
“Shortcuts taken by any company that we have entrusted to conduct background investigations of future and current federal employees are unacceptable,” said a spokesperson from the department of justice.
It is alleged that the company cut corners to save money when vetting potential employees, and then presented documents the government departments as completed reviews.
A former USIS executive, Blake Percival flagged these practises under the US's False Claims Act which rewards people for whistleblowing when fraud is being committed against the government. He will now receive a undisclosed share of the settlement.
