National Review's Melchior: Scandals Stalk Obamacare Contractor

Scandal continues to rock Serco, the British-based company whose American division received one of the largest contracts to work on the Affordable Care Act insurance exchanges, according to Jillian Melchior, an investigative reporter at National Review.

"This company has red flags pretty much everywhere you look. So in Great Britain, they're being investigated right now for potentially over-billing the British government," Melchior told "The Steve Malzberg Show" on Newsmax TV.

"There's also an investigation going on into whether or not they falsified performance records to make it look like they were doing a better job than they were," she added.

"They run a detention center for immigrants in Britain and in the last month, several women have come out saying they were sexually assaulted, sexually coerced, at this center run by Serco. That's a lot of red flags."

The company's CEO recently resigned amid allegations that the company defrauded the British government of millions of pounds. At the same time, it has aggressively pursued American business.

"In the last couple of years, they spent more than $1 million on lobbying and political activities. They gave to the Obama campaign and the other thing that I found really interesting is specifically for lobbying for the Affordable Care Act," she said.

"They ended up hiring his guy and – get this – he had been working on Capitol Hill, had participated in working on the health law, left for the private sector, started lobbying, lobbied for Serco, and within a very short order managed to get himself investigated for insider trading. That's the guy they have pushing for them for this contract."