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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 »

Boeing Company

Illegal Hiring of Government Officials and Improper Use of Proprietary Information

Date: 05/15/2006 (Date of Settlement Agreement)

Misconduct Type: Ethics

Enforcement Agency: Multiple Agencies

Contracting Party: Multiple Agencies

Court Type: Civil

Amount: $615,000,000

Disposition: Settlement

Synopsis: On May 15, 2006, Boeing and the U.S. Attorney’s Office “reached a tentative agreement in the investigation by the United States Attorney’s Office for the Eastern District of Virginia concerning Boeing's hiring of former Air Force acquisition official Darleen Druyun in 2002 and the investigation by the United States Attorney’s Office for the Central District of California regarding possession of a competitor's information in connection with launch service contracts with the Air Force under the Evolved Expendable Launch Vehicle Program and with a task order with NASA for 19 missions under its launch services contract…Under the proposed agreement, Boeing will pay a total of $615 million. In addition to the $50 million monetary penalty [pursuant to a criminal deferred prosecution agreement], Boeing will pay $565 million to resolve potential civil claims asserted by the Department’s Civil Division.” Under the agreement, the U.S. Attorney's Office could levy another $10 million penalty and seek to prosecute Boeing over the Druyun matter if, in the two years following the agreement, an executive management employee of Boeing commits certain crimes and the company fails to report it to the Department of Justice. See Boeing Company misconduct instances "Boeing Launch Services Suspension," "United States of America v. Darleen A. Druyun," and "United States v. Michael M. Sears (Boeing CFO)."