The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG) assisted the U.S. Attorney’s Office of the Northern District of Alabama in the civil investigation of Guardian Pest Services, Inc., doing business as Knox Pest Control and J.J.S.K. Solutions, Inc. Knox Pest Control has its principal place of business in Columbus, GA.
A HUD home is a one-to-four unit residential property acquired by HUD as a result of a foreclosure action on a Federal Housing Administration (FHA)-insured mortgage. HUD becomes the property owner and offers the property for sale to recover the loss on the foreclosure claim. HUD needs assistance to preserve the properties it obtains under FHA’s Single Family Property Disposition Program. Performance work statements describe the services required by contractors to assist HUD with the preservation of the properties. These services include inspections for and treatment of pest infestations. If an infestation was found during an inspection, the subcontractor was to hire an unaffiliated contractor to perform the termite treatment.
The civil investigation found that the termite inspections and termite treatments were being performed by Knox Pest Control and J.J.S.K. Solutions, Inc., which are the same entity. On June 2, 2016, Knox Pest Control entered into a settlement agreement with the Federal Government to avoid the delay, uncertainty, inconvenience, and expense of lengthy litigation. The settlement agreement is neither an admission of liability by Knox Pest Control nor a concession by the United States that its claims are not well founded.