Top bar
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 »
L-3 Communications
Headquartered in New York City, L-3 Communications is a leading provider of Intelligence, Surveillance and Reconnaissance (ISR) systems, secure communications systems, aircraft modernization, training and government services. The company is a leading merchant supplier of a broad array of high technology products, including guidance and navigation, sensors, scanners, fuzes, data links, propulsion systems, simulators, avionics, electro optics, satellite communications, electrical power equipment, encryption, signal intelligence, antennas and microwave components. L-3 also supports a variety of Homeland Security initiatives with products and services. Its customers include the Department of Defense, Department of Homeland Security, selected U.S. Government intelligence agencies and aerospace prime contractors.
Federal Contract $: $7357.7m
Total Number of Instances: 9
Total Misconduct dollar amount: $ 48.9m
- Annual Report
- Ethics Page
- Hoovers Profile
- Lobbying Information
- Political Activity
- Press Page
- SEC 10K
- Contracting Information
- Website
Instances of Misconduct
1. Misappropriation of Proprietary P-3 Aircraft Data
Lockheed Martin Corp. claimed L-3 Communications and its subsidiary, L-3 Communications Integrated Systems, Inc. (collectively referred to as “L-3 Comm” in the lawsuit), deliberately misappropriated its proprietary specifications and designs associated with its P-3 series of marine patrol, anti-submarine aircraft. Lockheed accused L-3 Comm of improperly using the data to secure a contract with the government of South Korea to refurbish eight of the Lockheed planes. In May 2009, a jury found in favor of Lockheed and awarded it over $37 million in damages. In March 2010, the court threw out the veridct and ordered a new trial, finding that Lockheed withheld certain pertinent documents during discovery. In October 2010, the parties settled the lawsuit, entering into a licensing agreement under which each party licensed to the other the right to use intellectual property related to P-3 aircraft.... more»
2. Fraudulent Overbilling on IT Support Services Contracts
L-3 Government Services, Inc., agreed to pay $1.9 million to settle False Claims Act and Program Fraud Civil Remedies Act allegations of fraudulent overbilling on information technology support services contracts. An investigation found that L-3 employees were routinely entering nine hours on their time sheets when in fact they only worked eight.... more»
3. Air Force Suspension
On June 3, 2010, L-3 Communications Corporation's Special Support Programs Division (L-3 SSPD) and its predecessor entity, L-3 Joint Operations Group (JOG), were temporarily suspended from receiving any new federal contracts or orders, including those under its Special Operations Forces Support Activity (SOFSA) contract. The notice of temporary suspension was issued by the Office of the Deputy General Counsel of the U.S. Air Force on June 4, 2010 and relates to an on-going governmental investigation of L-3 SSPD concerning the alleged inappropriate use of an e-mail system. According to media reports, the government is conducting a criminal probe into whether employees of L-3 SSPD unit used a military computer network to conduct e-mail surveillance of its employees and the employees of the federal government and other contractors. The Air Force terminated the suspension on July 27, 2010. Pursuant to an administrative agreement ending the suspension, L-3 agreed to pay the Air Force a $273,000 "contract credit" (representing the company's profit during the period of the inappropriate conduct) and $60,000 in administrative costs.... more»
4. False Claims (Iraq Reconstruction)
According to the April 30, 2007 Report to Congress of the Special Inspector General for Iraq Reconstruction (SIGIR), a criminal investigation found evidence of fraud involving Mohamed Abdel Latiff Zahed, a linguist employed by L-3 Communications subsidiary Titan Corporation. "CID approached Titan with evidence of fraud and received reimbursement of all funds fraudulently received by employee." Funds recovered from the contractor totaled $31,985. According to the Excluded Parties List System, the U.S. Army proposed debarment for Zahed on February 9, 2007.... more»
5. Bribery (Baghdad, Iraq)
Faheem Mousa Salam, an employee of L-3 Communications subsidiary Titan Corporation in the International Zone in Baghdad, Iraq, was charged with violating the Foreign Corrupt Practices Act. The criminal complaint, filed in federal court in the District of Columbia, alleged Salam offered payments to Iraqi police officials in exchange for contracts to supply the Civilian Police Assistance Training Team, Multi-National Security Transition Command – Iraq, with protective vests and other equipment. After pleading guilty to one count of violating the FCPA, in February 2007, Salam was sentenced to three years in prison, two years of supervised release, and 250 hours of community service. He was debarred in June 2007.... more»
6. U.S. v. Liu (Unauthorized Export of Military Articles)
Sixing Liu, a/k/a, “Steve Liu,” worked as a senior staff engineer at L-3 Communications’ Space & Navigation division from March 2009 until November 2010. In September 2011, Liu was indicted on charges of misappropriating and exporting sensitive military technology to China and making false statements to law enforcement agents. According to the indictment, Liu was part of a research and development team that worked on navigation and positioning devices used in artillery and missile systems. Liu was never issued a company laptop or approved to access or possess the company’s work product outside of its New Jersey facility; however, in November 2010, U.S. Immigration and Customs Enforcement (ICE) agents caught Liu at an airport with a non-work-issued computer containing L-3 documents relating to his research. A subsequent search of his residence turned up other L-3 proprietary documents. The government alleges that while he was in China, Liu gave presentations about the technology he was developing for the Department of Defense (DoD) without having obtained the company’s approval, and that when he returned to the U.S. he lied to ICE agents about the purpose of his trip and the extent of his work for DoD. In September 2012, a federal jury found Liu guilty on nine counts and acquitted him on two.... more»
7. Abu Ghraib Prisoner Mistreatment
Seventy-two Iraqis who had been detained at Abu Ghraib and other prisons in Iraq from 2003 through 2007 alleged that employees of several U.S. contractors, including L-3 Communications and L-3 Services, Inc. (later renamed Engility Corporation), either participated in, approved of, or condoned the mistreatment of prisoners. (The lawsuit was originally filed against Titan Corporation, which L-3 acquired in 2005.) In October 2012, Engility settled the lawsuit for $5.28 million.... more»
8. Court Martial of a Civilian Contractor
In May 2008, the U.S. military ordered a court-martial for Alaa "Alex" Mohammad Ali, a civilian contractor employed as a translator for the Army by L-3 Communications Titan Group, on charges of aggravated assault. Ali was accused of stabbing another contractor during a fight on a base near Baghdad in February 2008. In June 2008, Ali pleaded guilty to wrongfully taking a knife owned by a U.S. soldier, obstruction of justice and lying to investigators (the assault charge was dropped in exchange for his plea), and a military court sentenced him to five months in jail. This is the first time a civilian has been tried by court-martial under a 2006 amendment to the Uniform Code of Military Justice, which states that civilian contractors working for the U.S. government can be punished for violations of the UCMJ.... more»
9. Overbilling on Helicopter Maintenance Contract in Iraq
: L-3 Vertex Aerospace, a subsidiary of L-3 Communications Corp., paid $4 million to settle allegations that it submitted false and inflated claims to the Army for work on a contract to provide helicopter maintenance services in Iraq. The settlement resolves a False Claims Act lawsuit alleging that L-3 Vertex submitted false time records and inflated claims for hours worked by employees at Camp Taji, Iraq from March 2004 through August 2005.... more»
Quick Search
= link