Data Theft Reimbursement / Billing Irregularity (Nashville, TN)
On Christmas Eve 2007, two laptop computers containing voters’ personal data were stolen from the Davidson County Election Commission in Nashville, Tenn., where Wackenhut provides security services. Several days later, the city of Nashville demanded Wackenhut Corp. pay $109,000 in damages arising from the theft and to reimburse the city for the cost of sending out letters to each of the 337,000 voters whose data was stored on the computers. During the city’s investigation, auditors also allegedly discovered that, for at least three months at the end of 2007, Wackenhut had billed the city for guard services at the building during times when records show no guards were on duty. In May 2008, the city asked Wackenhut to refund a total of over $840,000, encompassing audit fees, mailing expenses, the cost of providing identity-theft protection to more than 56,000 voters, and $21,575 for security services the city claims Wackenhut never provided. The company has reportedly paid back $22,000 in overbillings, but the city still seeks restitution for the $773,000 cost of buying identity protection for every registered voter and sending out letters to voters, along with the $50,000 cost of auditing Wackenhut after the incident. The city filed suit against Wackenhut in October 2008. In July 2009, the city and Wackenhut settled for $400,000.
- Misconduct Type
- Poor Contract Performance
- Enforcement Agency
- Contracting Party
- Court Type
- Date of First Letter to Wackenhut