Belgian Firm Pleads Guilty for Pentagon Contract Allocation Fraud

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Photo taken on Feb. 19, 2020 shows the Pentagon seen from an airplane over Washington D.C., the United States. The U.S. Department of Defense announced Sunday the death of one of its contractors caused by the coronavirus, the first such fatality related to the U.S. military. The Crystal City, Virginia-based contractor who worked at the Defense Security Cooperation Agency (DSCA) died on Saturday, according to a release by the Pentagon. (Xinhua/Liu Jie)
Photo taken on Feb. 19, 2020 shows the Pentagon seen from an airplane over Washington D.C., the United States. The U.S. Department of Defense announced Sunday the death of one of its contractors caused by the coronavirus, the first such fatality related to the U.S. military. The Crystal City, Virginia-based contractor who worked at the Defense Security Cooperation Agency (DSCA) died on Saturday, according to a release by the Pentagon. (Xinhua/Liu Jie)

A Belgian security company, G4S Security Solutions NV, has pleaded guilty to a fraud scheme of security services contracts allocation, including a multimillion-dollar deal with the US Department of Defense related to Belgium-based military bases and installations, the Justice Department said on Friday.

“G4S Secure Solutions NV (G4S), a Belgian security firm, has agreed to plead guilty for its role in a conspiracy to rig bids, allocate customers and fix prices for defense-related security services, including a multimillion-dollar contract issued in 2020 to provide security services to the U.S. Department of Defense for military bases and installations in Belgium,” the Department said in a release. “This is the first international resolution obtained by the Procurement Collusion Strike Force (PCSF).”

It is alleged that between spring 2019 and summer 2020, the company and its co-conspirators committed fraud to allocate security services contracts for Belgian locations among themselves as well as to determine the prices as which contracts would be bid, including the one for Pentagon and the NATO Communications and Information Agency, the release said.

The company has agreed to pay a criminal fine of $15 million on top of agreeing to plead guilty and cooperate with the United States during the ongoing investigation, according to the release.

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