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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 »

General Electric

Anticompetitive Conduct in the Municipal Bond Investments Market (SEC Settlement)

Date: 12/23/2011 (Date of Settlement Announcement)

Misconduct Type: Antitrust

Enforcement Agency: SEC

Contracting Party: None

Court Type: Civil

Amount: $70,350,000

Disposition: Settlement

Synopsis: The Securities and Exchange Commission (SEC) charged GE Funding Capital Market Services with securities fraud for participating in a wide-ranging scheme involving the reinvestment of proceeds from the sale of municipal securities from August 1999 to October 2004. According to the SEC’s complaint, in addition to fraudulently manipulating bids, GE Funding CMS made improper, undisclosed payments to certain bidding agents in the form of swap fees that were inflated or unearned. These payments were in exchange for the assistance of bidding agents in controlling and manipulating the competitive bidding process. GE Funding CMS settled the SEC’s charges – without admitting or denying the allegations – by paying approximately $25 million that will be returned to affected municipalities or conduit borrowers. The firm also entered into agreements with the Department of Justice, Internal Revenue Service, and a coalition of 25 state attorneys general and will pay an additional $45.35 million. See related General Electric instance, “Anticompetitive Conduct in the Municipal Bond Investments Market (Non-Prosecution Agreement)”.