Paragon Systems

Paragon Systems Inc. is a privately held American security and investigations firm headquartered in Herndon, Virginia, specializing in protective services, cybersecurity, risk management, and mission support for U.S. government clients across defense, intelligence, homeland security, law enforcement, and federal civil sectors.^[1][2] Founded in 1983, the company deploys over 10,500 trained professionals nationwide and in U.S. territories, with more than 85% holding federal security clearances and 35% being military veterans, enabling rapid scalability for safeguarding physical facilities, critical infrastructure, networks, and data assets.^[2][1] Paragon's operations emphasize customized solutions, including armed and unarmed security, fire protection, inspections, and energy sector support, positioning it as a qualified vendor under the federal General Services Administration schedule for contracts with over 10 federal agencies and major defense contractors.^[3] Its workforce's high clearance rate and veteran composition underpin capabilities in high-stakes environments, such as aerospace and public utilities, contributing to its role in securing American interests domestically and abroad.^[1] In November 2024, Paragon agreed to pay $52 million to settle U.S. Department of Justice allegations under the False Claims Act and Anti-Kickback Statute, stemming from claims that company executives used shell entities and front companies to fraudulently secure small-business set-aside government contracts, involving kickbacks and misrepresented ownership structures.^[4][5] This resolution highlighted internal compliance challenges amid the firm's growth in federal contracting.^[6]

History

Founding and Early Development

Paragon Systems Inc. was established in 1983 as a private security firm specializing in protective services for government facilities and assets.^[2] Headquartered in Herndon, Virginia, the company initially focused on delivering licensed, trained personnel for facility security, emphasizing armed guards and risk management tailored to federal agencies.^[7] From its outset, Paragon prioritized contracts with departments requiring high-level clearance and specialized operations, building a reputation for safeguarding critical infrastructure amid growing post-Cold War demands for domestic security.^[8] In its early years, Paragon expanded by securing prime government contracts for protective services at military bases, intelligence sites, and civil agencies, employing thousands in roles demanding background vetting and operational readiness.^[9] The firm's growth aligned with increased federal outsourcing of security functions, positioning it as a key subcontractor before pursuing larger prime awards. By the late 1990s and early 2000s, Paragon had developed capabilities in electronic security integration and investigations, laying groundwork for broader service diversification while maintaining a core emphasis on cleared personnel deployment.^[10] This period marked steady scaling, with employee numbers rising to support multi-site operations across the U.S., driven by consistent performance in high-stakes environments.^[2]

Acquisition and Rebranding

In June 2010, Pinkerton Government Services Inc., a subsidiary of the Securitas Group, acquired Paragon Systems Inc. to expand its presence in the U.S. primary government security services market.^[11][2] The acquisition integrated Paragon's operations, which specialized in protective services for federal facilities, into Securitas's portfolio, enhancing capabilities in high-security contracts.^[11] On October 27, 2020, Securitas Critical Infrastructure Services Inc. (SCIS), the entity overseeing Paragon as a subsidiary, announced a corporate rebranding to adopt the Paragon name fully.^[12][13] This move unified operations under the Paragon brand, reflecting the company's evolution and expansion into sectors including protective services, investigations, energy, risk management, cybersecurity, inspections, and technical services, without altering ownership, board, or management structure.^[12][14] The rebranding emphasized Paragon's established reputation in government security while aligning branding with its subsidiary's identity to streamline market positioning.^[13]

Corporate Structure and Ownership

Parent Company and Subsidiaries

Paragon Systems, Inc. functions as a key operating subsidiary of Securitas Critical Infrastructure Services, Inc. (SCIS), a U.S.-based division focused on high-security protective services for government and critical infrastructure clients.^[15][7] SCIS, established to handle specialized U.S. federal contracts, falls under the broader umbrella of Securitas AB, the Swedish multinational security conglomerate founded in 1934 and headquartered in Stockholm. Securitas AB, publicly traded on the Nasdaq Stockholm exchange, reported revenues of SEK 139 billion in 2023 and maintains operations across more than 45 countries with approximately 336,000 employees as of 2024.^[16] The acquisition of Paragon by entities within the Securitas Group traces back to the mid-2000s, when Pinkerton Government Services—a Securitas affiliate—purchased the company to expand its footprint in U.S. government security services.^[17] In October 2020, SCIS initiated a corporate rebranding, adopting the Paragon Systems name for its operations to streamline identity and leverage Paragon's reputation in federal contracting, while retaining the underlying ownership structure.^[13] This move consolidated branding without altering the subsidiary relationship, as Paragon continues to report through SCIS channels, evidenced by recent regulatory disclosures tying Paragon's liabilities directly to Securitas AB.^[6] Paragon Systems itself does not maintain distinct subsidiaries, operating instead through integrated divisions that handle services such as cleared protective operations and aviation security under the unified SCIS-Paragon framework.^[18] This flat structure supports direct execution of contracts with U.S. agencies like the Department of Homeland Security and Department of Defense, aligning with Securitas AB's decentralized yet coordinated global model.^[19]

Leadership and Governance

Anthony L. Sabatino serves as the chief executive officer of Paragon Systems, a role he has held since at least 2021. Sabatino brings decades of experience in the security sector, having previously worked as an executive vice president at Securitas Security Services USA, where he contributed to operations and business development in protective services. He holds a bachelor's degree in economics and business administration from Wagner College.^[20][21][22] The executive leadership team supports strategic operations across divisions, including key figures such as:

• Sean O’Brien, Executive Vice President, with over 15 years in physical security training, operations, and business development; a former U.S. Army Captain in the Military Police Corps; and a Master of Science in Security Management and Emergency Management from John Jay College of Criminal Justice, where he secured over $1 billion in contract revenue during his tenure at Securitas.^[23]
• Lisette Chreene, Corporate Vice President of Human Resources, holding a BA in Psychology from UCLA and over 10 years at Securitas USA in recruitment and training roles, including recognition as a Top Young Trainer by Training Magazine.^[23]
• Nick Re, President of the Commercial Division, with more than 20 years in commercial security, defense, and aerospace; a BA from the University of Minnesota; an MBA from the University of Phoenix; and certification as a Certified Protection Professional (CPP).^[23]
• Angela Greaver, Corporate Facility Security Officer (FSO), possessing a BS from Western Governors University and over 10 years in industrial security, including development of cleared personnel auditing procedures and FSO certification.^[23]

Governance at Paragon Systems is directed by a board of directors chaired by retired U.S. Army Major General James E. Freeze, who offers over 50 years of expertise in intelligence, security, and electronic warfare from a 33-year military career rising from private to general, followed by leadership in private corporations. Other board members include:

• David A. Shull, retired U.S. Army Colonel and Chairman of the Government Security Committee, with 44 years in federal government service, including 28 years as a Judge Advocate General’s Corps officer and 15 years at the White House Office of National Drug Control Policy, specializing in legal and security compliance.^[24]
• Singleton B. McAllister, Director, with over 20 years in government relations and public policy, formerly senior counsel to the U.S. House Committee on the Budget, and current board service at Alliant Energy (since 2001) and United Rentals (since 2004).^[24]
• Gary J. Motsek, Director, featuring 27 years in U.S. Army logistics and 15 years in Department of Defense roles focused on product support and supply chain management.^[24]
• Mark Roman, Director, with more than 20 years in cybersecurity, including roles as Executive Director at ManTech, adjunct professorship, and former Department of Navy Technical Expert.^[24]

The board provides strategic oversight, with specialized committees such as the Government Security Committee ensuring focus on federal compliance and risk management. Paragon Systems upholds governance standards through its Code of Ethics and Conduct, which emphasizes integrity, honesty, and adherence to laws in business practices, applicable to employees and operations in protective services.^[24][25]

Operations and Services

Core Security and Protective Services

Paragon Systems provides armed and unarmed security officers as the foundation of its protective services, deploying personnel to safeguard federal facilities, military bases, and critical infrastructure against physical threats.^[26] These officers undergo over 120 hours of training in classroom instruction, field exercises, weapons handling, and customer relations, achieving a certification exam pass rate exceeding 90 percent through the company's National Protective Services Institute.^[26] Services extend to law enforcement response, paramilitary operations, and national disaster response, enabling rapid deployment in high-risk environments.^[26] Through its Secure Communities and Infrastructure Services (SCIS) division, Paragon delivers cleared protective services tailored for sensitive aerospace, defense, and intelligence facilities, including guards with U.S. government security clearances up to top secret levels, construction surveillance, and global fly teams for overseas deployments.^[18] This includes integration of electronic security systems, access control, metal and explosive detection, and risk management protocols to protect controlled areas for major defense contractors and agencies like the Department of Homeland Security.^[18] SCIS supports administrative functions such as visitor management, classified materials handling, and compliance audits, with personnel including firefighters and emergency medical technicians for comprehensive site security.^[18] The company maintains contracts with federal entities, including the Federal Protective Service for armed protective security officer services at buildings like those in Los Angeles, California, under agreements such as 70RFPW22DW9000002.^[27] Its Multiple Award Schedule (MAS) contract with the General Services Administration facilitates procurement by any federal agency for these services, emphasizing quality, scheduling, and cost controls as evidenced by over 50 Contractor Performance Assessment Reports.^[28][29] Additional capabilities encompass facility security management, screening operations, security escorts, visitor badging, and dignitary protection, primarily for civilian, intelligence, and law enforcement sectors.^[26] With more than 25 years of experience, Paragon employs over 7,500 certified professionals across 500 locations worldwide, focusing on U.S. government clients in defense, homeland security, and justice.^[26]

Specialized Offerings and Clientele

Paragon Systems offers specialized protective services beyond standard guard duties, including dignitary protection, paramilitary security operations, and national disaster response, which are designed for high-threat environments such as Category V facilities and classified sites.^[26] These services incorporate advanced screening operations, electronic security systems, and law enforcement response capabilities, supported by in-house training through the National Protective Services Institute, where officers undergo over 120 hours of instruction in weapons handling, field tactics, and customer relations, achieving a certification pass rate exceeding 90% on first attempts.^[26] The company deploys more than 7,500 trained security personnel for these operations, emphasizing rapid deployment and adaptability to threats at federal facilities and military bases.^[26] In addition to protective services, Paragon provides investigative support focused on vetting the suitability of federal civilian, military, and contractor personnel for roles critical to national security, including background examinations and reporting on potential risks.^[30] Launched in 2020, its risk management division delivers tailored solutions such as risk advisory, industrial security, and protection planning, drawing on expertise in countering contemporary threats like cyber-physical vulnerabilities at critical infrastructure.^[31] These offerings extend to mission support, cybersecurity assessments, and fire inspections, enabling integrated security for sensitive operations.^[32] The company's primary clientele consists of U.S. federal government agencies, including the Departments of Defense, Homeland Security, State, Justice, Energy, Health and Human Services, as well as entities like the Federal Aviation Administration, NASA, Social Security Administration, and Transportation Security Administration.^[33] Paragon secures over 500 federal facilities and military installations globally, addressing needs from aviation and space research sites to energy and transportation hubs, often through vehicles like the GSA Multiple Award Schedule (MAS) contract under SIN 246-54 for guard services, which streamlines procurement for any federal agency without additional competition.^[33][28] Limited private-sector clients include firms like Honeywell, but government contracts dominate, with services adapted to high-security demands such as visitor badging, security escorts, and protection for classified environments.^[33]

Legal and Regulatory Issues

False Claims Act and Anti-Kickback Violations

In November 2024, Paragon Systems Inc., a Herndon, Virginia-based provider of security services to federal agencies, agreed to pay $52 million to the United States to resolve allegations that it violated the False Claims Act (FCA) by fraudulently obtaining small business set-aside contracts from the Department of Homeland Security (DHS).^[4] The settlement stemmed from a qui tam whistleblower lawsuit filed in 2021 by former employee Todd Pattison under United States ex rel. Pattison v. Paragon Systems Inc., et al., No. 21-3260 (D. Md.), in which the government intervened.^{[4] [5]} Paragon did not admit liability, and the Department of Justice (DOJ) described the resolution as addressing claims without a determination of wrongdoing.^[4] The FCA allegations centered on Paragon's alleged use of controlled "pass-through" entities posing as qualifying Woman-Owned Small Businesses (WOSBs) and Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) to secure DHS contracts for protective security services at federal facilities, which are reserved for such disadvantaged businesses under federal procurement rules.^{[4] [5]} According to the government's claims, Paragon executives placed figurehead owners—such as female relatives or friends—to nominally satisfy eligibility criteria, while retaining actual control over operations and decision-making, then subcontracting the bulk of the work back to Paragon itself.^[5] This scheme allegedly allowed Paragon, a large non-qualifying business, to bypass competitive bidding and obtain contracts intended to promote economic opportunities for small and disadvantaged firms.^[4] The settlement also resolved related Anti-Kickback Act violations, under which the purported small businesses allegedly funneled over $11 million in kickbacks to Paragon executives through disguised "consulting payments" routed via shell companies, compensating them for facilitating the pass-through arrangements.^{[4] [5]} One implicated entity, Athena Services International LLC (ASI)—a WOSB owned by Alisa Silverman—and its joint venture with Paragon, separately settled for over $1.6 million to address similar FCA and Anti-Kickback Act claims.^{[4] [5]} Pattison, the whistleblower, received over $9 million from the Paragon portion of the recovery and approximately $280,000 from the ASI settlement, reflecting the FCA's incentive structure for relators who expose fraud against the government.^{[4] [5]} The case highlights ongoing DOJ enforcement priorities targeting abuse of small business set-aside programs in government contracting.^[4]

Other Litigation and Compliance Matters

Paragon Systems has been involved in numerous employment-related lawsuits alleging violations of federal and state wage and hour laws, often centering on failure to pay overtime, provide meal and rest breaks, or reimburse expenses for security personnel. For instance, in Mireles v. Paragon Sys., Inc. (S.D. Cal. 2013), plaintiffs asserted claims including failure to provide meal period premium pay, accurate wage statements, and overtime compensation under California law, leading to a proposed class action settlement.^[34] Similarly, Lopez v. Paragon Sys., Inc. (E.D. Cal. 2013) involved a security officer seeking damages for alleged retaliation and wrongful termination after reporting safety concerns, with the court addressing Paragon's motion to dismiss.^[35] More recent cases include Steven Tapia v. Paragon Systems, Inc. (C.D. Cal. 2025), where the plaintiff claimed underpayment and late payment of minimum and hourly wages in violation of the California Labor Code, prompting a federal court order denying remand to state court.^[36] In Robertson v. Paragon Systems, Inc. (N.D. Cal. 2025), ongoing proceedings addressed similar labor disputes involving security guards.^[37] These suits reflect patterns in the security industry, where low-wage, shift-based work frequently leads to class certification efforts, though outcomes vary based on evidence of systemic practices. In labor relations, Paragon faced National Labor Relations Board (NLRB) scrutiny for alleged unfair practices. A 2022 NLRB decision (371 NLRB No. 104) required compliance certification following a settlement with the Committee for Fair Representation, involving backpay and notice postings for affected employees.^[38] Additionally, in March 2024, Paragon settled NLRB charges of bad-faith bargaining with the union representing U.S. Court Security Officers, agreeing to pay $286,000 in make-whole remedies for delayed negotiations on wages and conditions.^[39] An NLRB unfair labor practice charge (Case 05-CA-308336, filed December 2022) further alleged interference with employee rights at Paragon facilities.^[40] Compliance matters have also included disputes over contract performance and employee classifications, as seen in Johnson v. Paragon Systems, Inc. (D.D.C. 2015–2018), where the court deemed the plaintiff's claims meritless and sanctioned counsel for prolonging baseless litigation against the company.^[41] Such cases underscore Paragon's exposure to routine compliance challenges in government-contracted security operations, though no systemic regulatory sanctions beyond labor realms were identified in public records as of October 2025.

Impact and Reception

Contributions to National Security

Paragon Systems contributes to national security by delivering protective services to U.S. defense, intelligence, and homeland security agencies, including armed and unarmed security, law enforcement response, and paramilitary operations at over 500 federal facilities and military bases worldwide.^[26][1] The company's personnel, exceeding 7,500 in its protective services sector, safeguard nearly 1,000 federal sites across the United States, helping to deter threats to critical infrastructure and government operations.^[42] In the aerospace and defense domain, Paragon provides cleared protective services, electronic security systems, and risk management for highly sensitive controlled facilities, ensuring the physical protection of assets vital to military and intelligence functions.^[18] Additionally, the firm conducts background investigations to evaluate the suitability of federal civilian, military, and contractor personnel for national security-sensitive positions, thereby mitigating insider threats through vetting processes.^[30] Paragon's role expanded in January 2025 when it was awarded prime contractor status on the Department of Defense's SeaPort Next Generation multiple-award contract vehicle, positioning the company to deliver engineering, technical, and programmatic support services across various functional areas to naval and defense programs.^[43] As one of the federal government's largest providers of specialized security, fire protection, emergency response, and mission support services, Paragon supports the operational continuity of agencies like the Department of Homeland Security and Department of Defense, with contracts such as a $95.6 million indefinite-delivery/indefinite-quantity award from DHS in 2019 for protective security services.^[44][45]

Criticisms of Privatization and Performance

Critics of privatizing protective security services, including those provided by firms like Paragon Systems, argue that outsourcing to for-profit contractors incentivizes cost-cutting measures that compromise training, retention, and overall effectiveness, potentially endangering federal facilities and personnel. Empirical assessments, such as those from the Government Accountability Office (GAO), have highlighted systemic deficiencies in contract guard performance under the Federal Protective Service (FPS), where private firms handle screening duties; in nearly 500 covert tests conducted by FPS through 2024, contract guards failed to detect prohibited items in approximately half of cases, raising concerns about vulnerability to threats like weapons or explosives.^[46] These lapses are attributed to factors including high employee turnover—common in the private security sector due to low wages relative to responsibilities—and inconsistent oversight, which GAO reports indicate the Department of Homeland Security (DHS) has struggled to enforce across contractors.^[47][48] Performance evaluations of Paragon Systems specifically, as a primary FPS contractor for contract security officers (CSOs), have drawn scrutiny in government procurement contexts, where past performance ratings have been contested amid broader privatization debates. For instance, in DHS solicitations, competitors have challenged Paragon's incumbency advantages, implying uneven application of standards that may overlook operational shortcomings, though GAO has upheld some agency evaluations as reasonable. Employee accounts from federal contract sites further suggest internal issues, such as disorganized scheduling and inadequate management support, which could erode guard vigilance and response capabilities over time.^[49] Proponents of in-sourcing counter that privatization fosters dependency on unaccountable entities, with profit motives leading to underinvestment in personnel development; a 2021 GAO analysis found the Department of Defense similarly unable to fully track or monitor private security functions, exacerbating risks in high-stakes environments.^[47] Broader causal analyses point to privatization's role in amplifying these problems through competitive bidding pressures that prioritize low bids over quality, resulting in a workforce often lacking the institutional knowledge of federal employees. While some contracts show stable performance metrics for Paragon in earlier fiscal years, recent GAO oversight of FPS operations underscores persistent detection failures, fueling arguments that reliance on firms like Paragon undermines national security objectives by substituting rigorous public service with commoditized labor.^[50][46] Such critiques emphasize the need for enhanced metrics and accountability to mitigate the trade-offs of efficiency gains against potential lapses in protective efficacy.