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Unplugged: Kabul Embassy Scandal Shakes Up State Dept.

In an ongoing investigation into the serious breaches by security guards during wild parties at the U.S. Embassy in Kabul, CBS News learned that complaints against ArmorGroup, the private company that provides the Embassy security, reached the office of Former State Department Inspector General Howard Krongard in 2007.

Yet nothing was done, as the complaint was apparently "lost."

Krongard faced a serious conflict of interest: His brother Buzzy was on ArmorGroup's board of directors at the time. CBS News Investigative Correspondent Sharyl Attkisson asked him if he was aware of his brother's position on "Washington Unplugged" Wednesday.

"No. 1 I'm not sure why I should've known, but No. 2 he never told me," he responded.

Watch: Excerpt of Attkisson's Interview with Krongard

Krongard maintains there was no conflict because he and his brother "lead separate lives."

When asked if he would have liked to have known in retrospect, Krongard replied, "If you're asking me do I think that either ArmorGroup or he should have told me, yes. It wouldn't have made any difference, as I say; I never had anything to do with ArmorGroup."

Attkisson also spoke with John Gorman, a former ArmorGroup manager-turned-whistleblower. He managed the camp where the 400 Embassy guards were housed.

Gorman claims the company operated under a "profit-over-safety mentality" and that he was ignored by ArmorGuard superiors, the State Department, and members of Congress.

Watch: Full Interview of Attkisson's Interview with Gorman

"When I got back from Kabul, after we were fired, I sent letters to Senator Dodd, Senator Lieberman, Congressman Shays and Congressman Courtney. So yes, not only did State know, but Congress knew," Gorman notes.

According to Sen. Lieberman's office, staffers did notify Krongard's office about allegations of security and fraud.

Asked about that claim, Krongard responded, "No. I have no knowledge of that whatsoever."

Watch Wednesday's Unplugged, also featuring an interview with controversial filmmaker Michael Moore and a look at "The Way We Get By," a new documentary honoring those who greet our returning troops.

"Washington Unplugged" appears live on each weekday at 12:30 p.m. ET. Click here to check out previous episodes.

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