ArmorGroup settles Kabul guard case for $7.5M

AP News
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Posted: Jul 07, 2011 4:14 PM
ArmorGroup settles Kabul guard case for $7.5M

The Justice Department says that ArmorGroup North America Inc. and its affiliates have paid $7.5 million to settle allegations that they filed false claims on a contract to guard the U.S. Embassy in Kabul, Afghanistan.

The State Department says guards visited brothels in Kabul, that Armor Group North America's management knew about the guards' conduct and that the company misrepresented the work experience of 38 guards at the embassy. The government says the brothel visits violated the federal Trafficking Victims Protection Act.

The settlement also covers claims that Armor Group North America failed to live up to requirements that it insulate itself from control by a foreign owner on the embassy contract and on a contract for guard services at a U.S. Navy facility in Bahrain.