Amentum National Security Program, Inc.'s effort to insulate itself from the small business contracting fraud and human trafficking allegations associated with Contracts W911W4-08-D-0002 and W911W4-11-D-0004 (contracts for translation services for the U.S. Army Intelligence and Security Command ["INSCOM"]) have failed.  Rejecting NSP's motion to dismiss Relators' Second Amended Complaint, the United States District Court for the District of Maryland has ruled that NSP must answer to Relators small business contracting fraud and human trafficking allegations. 

The United States District Court for the District of Maryland (Hon. Paula Xinis) rejected Amentum National Security Programs, Inc.'s ("NSP," formerly AECOM National Security Programs, Inc. and, previous to that, McNeil Technology, Inc.) Motion to Dismiss the Relator/Plaintiffs' Second Amended Complaint ("SAC"). With respect to the SAC's allegation that the corporate veil should be pierced to hold NSP liable for GLS's small business contracting fraud, Judge Xinis ruled "the Second Amended Complaint makes plausible that AECOM and DynCorp controlled the selection and removal of GLS’ Board of Managers and retained exclusive power to bind GLS in any such contract with the U.S. Military. . . Regarding day-to-day operations, AECOM evidently kept a tight rein on GLS. Id. ¶ 49 (AECOM demanding GLS pay certain salaries and fringe benefits); id. ¶ 51 (GLS required to submit weekly operation reports); id. ¶¶ 43–45 (AECOM and DynCorp approving GLS budget, training protocols, oversight of additional offices); id. ¶ 41 (AECOM approval on loans to GLS); id. ¶ 38 (AECOM with DynCorp having exclusive right to appoint and remove GLS officers at will)." With respect to Relators' assignment of liability to NSP for the human trafficking violations alleged, Judge Xinis first reminded the litigants that the Trafficking Victims Protection Reauthorization Act ("TVPRA") “holds not just primary offenders accountable but also anybody who knowingly benefits, financially or by receiving anything of value, from participation in a venture which has engaged in’ forced labor.” Then, the Court went on to conclude that Relators had sufficiently alleged that NSP's knowledge and gain from the trafficking activity to confer TVPRA liability upon it.  To view a copy of the Memorandum Opinion, click HERE.  For media coverage of the ruling click HERE and HERE.