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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 »

Government of Canada (CCC)

Amertek, et al. v. Canadian Commercial Corp. (Deceit and Breach of Fiduciary Duty)

Date: 07/05/2005 (Date of Appeal)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Non-Governmental

Contracting Party: International

Court Type: Civil

Amount: $5,963,767

Disposition: Judgment Against Defendant

Synopsis: In August 2003, after a seven-year legal battle, the Ontario Superior Court of Justice ordered the Canadian Commercial Corporation and the Attorney-General of Canada to pay restitution, punitive damages and other costs and disbursements to Ontario truck body manufacturer Amertek Inc. The court ruled that Amertek and its investors were unsuspecting victims of “shocking behavior” on the part of the CCC, who conspired to harm Amertek while defrauding the U.S. government. CCC officials told the U.S. Army that Amertek had the ability to fulfill a supply contract. In reality, the officials knew Amertek could not handle the deal, but concealed that from both Amertek and the Army to avoid paying substantial penalties. In July 2005, the Ontario Court of Appeal overturned the trial decision relating to Amertek ("CCC’s conduct in its dealings leading to its contract with Amertek was not grounded in fraud or deceit.") but let stand the judgment relating to the individual investors, who were awarded damages and costs of approximately $6 million (CDN$8,307,966).