Fraudulent Security Background Check Company Gets Financially Rewarded

USIS_FraudulentAccording to a recent article from The Washington Post, the company that performs almost half of the government’s security background checks – USIS – received around $16 million in incentive awards despite taking shortcuts in its reviews. The Washington Post acquired this information from a congressional report.

In addition to completing the background checks for Edward Snowden and Aaron Alexis (the contractor who killed 12 in the navy yard shooting), USIS allegedly did not complete full background checks in 40 percent of their cases during a 4.5 year span. During this time, they completed 665,000 fraudulent background checks. In December, the Justice Department filed a complaint against the company, according to The Washington Post.

Evidence also shows that in April 2011, the company allegedly completed 13,000 reports in one week. Only four investigators completed this, meaning each one did an average of 3,278 cases a week, an impossible task, to say the least.

Despite these missteps and fraudulent investigations, the congressional report states that USIS received $16 million in incentive awards. There was also an increase in bonuses when the fraudulent activity began and the former president and CEO, Bill Mixon, supposedly received bonuses and stock totaling more than $1 million while the corrupt activity was occurring.

According to The Washington Post, 24 executives (including the CEO and CFO) have been fired, resigned or retired since the illicit activity began occurring.

How did the company get away with completing so many fraudulent background checks? Furthermore, why did they receive such high bonuses and awards for their work?

Posted by Jamie Friedlander on Feb 12, 2014

  • Fresh Security Perspective from AMAG’s New Sales Director A Fresh Perspective on Security

    Fred Nelson may be new to the security industry but his sales and leadership methods are time tested, and true. Fred joined AMAG only a few months ago, but brings with him a wealth of experience in sales and life balance solutions. This year is off to a good start for AMAG with new solutions on the horizon.

Digital Edition

  • Security Today Magazine - April 2022

    April 2022


    • Similarities at Data Centers and Airports
    • Transitioning to the Cloud
    • Going High Tech
    • The Benefits of On-site Security
    • Optimizing Store Layouts

    View This Issue

  • Environmental Protection
  • Occupational Health & Safety
  • Infrastructure Solutions Group
  • Spaces4Learning
  • Campus Security & Life Safety