Contractor responsible for Snowden background check under investigation

The contractor that conducted a background check of National Security Agency
leaker Edward Snowden is under criminal investigation, Sen. Claire McCaskill (D-Mo.) said
Thursday.

McCaskill said at a Senate hearing Thursday that Falls
Church, Va.-based USIS was being investigated by the Office of
Personnel Management inspector general for a systematic failure to
properly conduct its investigations.

McCaskill said that the USIS was under investigation for a
period of time that included Snowden’s background check in 2011.

“This is a reminder that background investigations have real
consequences for national security,” McCaskill said at the a joint Senate
Homeland Security subcommittee hearing examining the security clearance
process.

{mosads}At the hearing, Michelle Schmitz, the assistant inspector general for
investigations, confirmed an investigation was underway. She said Snowden’s
background check was conducted before the investigation into the contractor
began in late 2011.

McCaskill said that the USIS conducts two-thirds of background
checks run by contractors for the Office of Personnel Management, which
conducts 90 percent of government background checks used to approve security
clearances.

The contractor received $200 million from OPM for background
checks last year, McCaskill said.

Patrick McFarland, the OPM inspector general, said that 18 individual background investigators have been criminally convicted of fabricating
background checks since 2006.

There are also 36 pending cases against investigators, nine
active cases and two where a defended pleaded or is expected soon to plead
guilty.

McFarland said in his testimony his office does not have the
financial resources to investigate all fabrication cases in a timely manner.

McFarland declined to comment on the status of the investigation
into USIS because it is ongoing.

The company said in a statement it has “never been informed
that it is under criminal investigation.”

“In January 2012, USIS received a subpoena for records” from
the IG, the contractor said, and it complied with the subpoena.

— This story was updated at 6:21 p.m.