The federal government may try to assess damages against Altegrity Inc., the bankrupt parent of a government security investigations contracting business that is been accused of fraud in a whistleblower lawsuit, the Wall Street Journal reported today. The business — US Investigations Services (USIS) — is being liquidated, but Altegrity plans to emerge from bankruptcy with its other businesses intact. Federal lawyers moved on Friday to block Altegrity’s bid to shield itself and its leaders from liability in the lawsuit, which alleges USIS raked in tens of millions of taxpayer dollars for work that was never performed. Whistleblower Blake Percival, a former USIS employee who exposed the alleged “flushing” or “dumping” of unfinished security investigations, has already asked a bankruptcy judge to find that the wrongs alleged in the lawsuit he filed can’t be erased in chapter 11. Besides the whistleblower damages, the government said it may seek damages for possible violations of federal retirement pay protection laws if any turn up in a continuing investigation.
