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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 »

IBM Corporation

Providing Materially Misleading Financial Statements

Date: 06/05/2007 (Date of Settlement)

Misconduct Type: Securities

Enforcement Agency: SEC

Contracting Party: None

Court Type: Administrative

Amount: $0

Disposition: Settlement

Synopsis: The Securities and Exchange Commission concluded an investigation of IBM, finding the company misled analysts about employee stock-option expenses in 2005. The SEC said IBM's conduct violated the reporting provisions of the Securities and Exchange Act of 1934 and ordered IBM to cease and desist from committing or causing violations of these provisions. However, the SEC stopped short of finding fraud had been committed and imposed no fine. See related IBM instance, “IBM Securities Litigation.”