In October last year, two months before the Securicor buyout, it was fined more than $1.5m (£1m) for allowing untrained employees, some with criminal records, to operate security checkpoints at Philadelphia international airport. Fourteen had criminal backgrounds that included drug dealing, kidnapping, firearms offences, aggravated assault and theft. Three executives pleaded guilty to conspiracy and fraud-related charges.The company agreed to pay $1.2m in fines and costs for falsifying training and background checks, and was ordered to pay $350,000 to 38 airlines. It was placed on probation for three years.
Ten months ago, Securicor made an initial payment of $185m for Argenbright to its Atlanta parent, AHL Holdings, with the final price to be based on this year's performance.
Frank Argenbright, 53, who founded AHL in 1979, received $2m for delivering the deal and was appointed chief executive officer of Securicor's US security operations. He retains 53% of AHL, worth an estimated $62m, and stands to gain a bonus of up to $3m this year.
Note the date of the article.
U.S. accuses Securicor firm
12/10/01 14:09
WASHINGTON (Reuters) - A Securicor-owned airport security operation has been accused by federal prosecutors in Philadelphia of hiring screeners with criminal records and of violating federal rules at 13 major airports.
In court papers made public on Thursday, the U.S. Attorney's Office in Philadelphia accused Securicor subsidiary Argenbright Holdings of potentially jeopardizing public safety and asked that the firm be found in violation of its probation for previous violations.
"Even though it was sentenced less than a year ago for an astonishing pattern of crimes that potentially jeopardized public safety, and despite this court's order requiring it to fully implement all of the terms of its probation, defendant Argenbright has failed to do so and in fact has committed additional violations of the type which resulted in its prosecution last year," the court petition said.
Argenbright, America's largest airport security firm, was fined $1.2 million in October 2000 for numerous violations at Philadelphia International Airport, including falsifying records, performing inadequate background checks, and hiring airport workers with criminal records.
According to court papers, the company, among other things, has continued to hire pre-departure screeners at the Philadelphia airport who have "disqualifying" criminal convictions.
The government also alleged that Argenbright had violated FAA regulations at 13 airports, including Dulles International outside Washington, Logan in Boston, New York's LaGuardia, and Dallas-Fort Worth.
Argenbright president Bill Barbour said on Thursday he was puzzled by the new allegations and said the company planned to contest what he said were inaccuracies contained in the court papers.
"In light of the recent positive audit of our company by the FAA (Federal Aviation Administration), we are puzzled by both the timing and substance of today's actions by the U.S. attorney," Barbour said in a statement.
Barbour said nearly all of the alleged violations occurred before the company changed its practices to meet FAA concerns.
The latest charges leveled against the Atlanta-based company were made public on the same day that the U.S. Senate unanimously approved an air security bill that would put airport baggage screening in the hands of federal workers.
The move comes in the wake of the Sept. 11 hijack attack on the World Trade Center in New York and the Pentagon near Washington. More than 5,000 people were killed.
So, this foreign company was in charge on the day and for months before!
Do you have a qucik easy way to find out the stockholders names?
The company does business in a lot of Arabic countries.
Perhaps its stockholders are Arabic?