US alleges million-dollar fraud by background check company

The Justice Department on Wednesday accused a prime federal contractor responsible for security background checks of ripping the government off on a massive scale.

It accused US Investigations Services LLC, which performs 45 percent of the background checks used by the government, of submitting 660,000 phony reports, The Wall Street Journal reported.

USIS has been awarded a total of $4 billion in contracts, and one of the faulty checks was of National Security Administration leaker Edward Snowden.

Security background checks were privatized in the 1990s under President Clinton.