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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 »

Lockheed Martin

United States ex rel. Beattie, et al. v COMSAT (Alleged Contract Fraud)

Date: 08/27/2001 (Date of Settlement)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Defense – Navy

Contracting Party: Defense - Navy

Court Type: Civil

Amount: $8,500,000

Disposition: Settlement

Synopsis: "ElectroMechanical Systems, Inc., along with its current and former corporate parents - COMSAT Corporation, CRSI, Inc. and Lockheed Martin Global Telecommunications, LLC - have agreed to pay the United States $1 million to settle allegations related to contract fraud.... ElectroMechanical already paid $7.5 million in criminal restitution in connection with the allegations that it lied about its costs when negotiating contracts for the repair and restoration of radar pedestals installed on U.S. warships....[ElectroMechanical] directed its employees to record time spent on other tasks to labor hour accounts assigned to Navy restoration contracts and destroyed records in order to mislead government auditors."