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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 »

McKesson

U.S. v. McCall et al. (Securities Fraud)

Date: 11/19/2009 (Date of Conviction)

Misconduct Type: Securities

Enforcement Agency: Justice

Contracting Party: None

Court Type: Criminal

Amount: $1,000,500

Disposition: Pleaded Guilty

Synopsis: Former McKesson HBOC Chairman Charles McCall was convicted on four counts of securities fraud and one count of circumventing internal accounting controls. (McKesson and HBOC merged in January 1999.) The government accused McCall and other top company executives of defrauding shareholders from December 1997 to April 1999 by inflating publicly reported revenue. In March 2010, McCall was sentenced to ten years’ incarceration and ordered to pay a $1 million criminal fine and a $500 special assessment. Co-defendant Jay Lapine, former general counsel at McKesson HBOC, was acquitted of securities fraud and other charges.