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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

SEC v. Lapine (Securities Fraud)

Date: 03/01/2010 (Date of Final Judgment)

Misconduct Type: Securities

Enforcement Agency: SEC

Contracting Party: None

Court Type: Civil

Amount: $60,000

Disposition: Judgment Against Defendant

Synopsis: In March 2010, a consent and final judgment against Jay Lapine, former general counsel at McKesson HBOC (now McKesson Corporation), was entered by the United States District Court for the Northern District of California. Lapine was charged by the Securities and Exchange Commission (SEC) with securities fraud in connection with a financial reporting fraud at McKesson HBOC. The SEC complaint, filed in 2001, alleged that Lapine, together with other senior executives, participated in a long-running scheme to inflate the revenue and net income of HBO & Company, which merged with McKesson in 1999. As part of the final judgment, Lapine agreed to pay a civil penalty of $60,000. He was also stripped of his right to practice law before the SEC for five years. Lapine consented to the entry of judgment without admitting or denying the allegations of the complaint except as to jurisdiction. Lapine was acquitted in November 2009 of criminal charges in the matter. (See related McKesson instances, “McKesson/HBOC, Inc. Securities Litigation,” “SEC v. Smeraski (HBOC Securities Fraud)”, “U.S. v. McCall et al. (Securities Fraud)”, and “SEC v. McCall (Securities Fraud)”. )