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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 »
BP P.L.C.
April 2010 Gulf of Mexico Oil Spill – Federal Criminal Settlement
Date: 11/15/2012 (Date of Settlement Announcement)
Misconduct Type: Environment
Enforcement Agency: Multiple Agencies
Contracting Party: None
Court Type: Criminal
Amount: $4,525,000,000
Disposition: Pleaded Guilty
Synopsis: BP Exploration and Production reached a $4.5 billion settlement with the federal government over the 2010 Deepwater Horizon explosion, oil spill, and response. The agreement resolved all criminal claims by the Department of Justice (DOJ) and civil securities fraud charges by the Securities and Exchange Commission (SEC). In its resolution with the DOJ, BP agreed to plead guilty to 11 counts of misconduct or neglect of ship officers, one count of obstruction of Congress, one misdemeanor Clean Water Act count, and one misdemeanor Migratory Bird Treaty Act count. In addition, two BP supervisors on the Deepwater Horizon (Robert Kaluza and Donald Vidrine) were charged with involuntary manslaughter, seaman’s manslaughter, and a Clean Water Act violation, and a former senior executive (David Rainey) was charged with obstruction of Congress and making false statements to law enforcement officials. The $4 billion settlement with the DOJ includes $1.256 billion in criminal fines, a $2.394 billion payment to the National Fish & Wildlife Foundation (NFWF), and a $350 million payment to the National Academy of Sciences (NAS). BP also agreed to a term of five years’ probation and to implement measures to improve the safety of its drilling operations in the Gulf of Mexico and improve its corporate ethics policies and practices. In its resolution with the SEC, BP agreed to pay a $525 million civil penalty for misleading investors by significantly understating the oil flow rate in multiple reports filed with the SEC in April and May 2010.
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