Wednesday, June 24, 2015

OPM Contractor’s Parent Firm Has a Troubled History

Officials at the Office of Personnel Management claim that their system was breached using credentials that were stolen from KeyPoint Government Solutions, a government contractor that provides background checks.

The hack, which exposed personal information for potentionally tens of millions of Americans, has drawn scrutiny to KeyPoint’s security practices, with one senior lawmaker even calling for OPM to cease use of outside contractors.

But for KeyPoint’s parent company, Veritas Capital, a private equity firm based in New York City, the hack is only the latest incident in a long history of controversial government contracting.

Founded in 1992 by the late investment banker Robert McKeon, Veritas Capital grew quickly by buying up government contractors and forming close ties with former senior government officials. Of the many defense-related investments made by the company, the most famous has been the 2005 purchase of DynCorp International, a scandal-plagued company that played a pivotal role in the wars in Iraq and Afghanistan.

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