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About POGO's Federal Contractor Misconduct Database (FCMD)

The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Ranking: 62

International Oil Trading Company

International Oil Trading Company, LLC (IOTC) is a privately-owned company headquartered in Boca Raton, Fla. Since 2004, IOTC has been awarded approximately $1.4 billion in contracts to transport fuel from Jordan to American forces in Iraq.

Federal Contract $: $ 0.0m

Total Number of Instances: 2

Total Misconduct dollar amount: $ 33.8m

Contracting Information

Instances of Misconduct

1. Supreme Fuels Trading v. Sargeant (Bribery)

A federal lawsuit alleged International Oil Trading Company engaged in a conspiracy to pay bribes to Jordanian government officials to secure the exclusive right to transport fuel across Jordan to American military forces in Iraq. The lawsuit, filed by competitor Supreme Fuels Trading FZE, alleged IOTC and its owners – Harry Sargeant, III, and Mustafa Abu-Naba’a – paid bribes to key Jordanian officials to obtain a letter of authorization, which is required in order to bid on the fuel transport contracts, effectively eliminating competition and causing the U.S. government to pay more for fuel. In October 2008, the House Committee on Oversight and Government Reform, which looked into IOTC’s contracts, reported to Secretary of Defense Robert Gates that IOTC “appears to have engaged in a reprehensible form of war profiteering” and may have overcharged the U.S. government as much as $180 million. Committee Chairman Henry Waxman has asked for a Defense Department investigation. In May 2011, the court ruled in favor of Supreme Fuels and awarded it $5 million. See related International Oil Trading Company instance, “Al-Saleh v. Sargeant (Fraud).”... more»

2. Al-Saleh v. Sargeant (Fraud)

Mohammad Al-Saleh sued International Oil Trading Company and its owners, Harry Sargeant, III, and Mustafa Abu-Naba’a. Al-Saleh, a former partner with Sargeant and Abu-Naba’a in a venture to obtain U.S. government contracts to transport fuel across Jordan to American forces in Iraq, claimed the two men conspired to swindle him out of one-third of the profits (over $13 million) after he had obtained the required authorizations from the Jordanian government. In July 2011, a Palm Beach County, Florida jury found in favor of Al-Saleh and ordered Sargeant to pay Al-Saleh $28.8 million in damages. See related International Oil Trading Company pending instance, “Supreme Fuels Trading v. Sargeant (Bribery).”... more»