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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 »

IBM Corporation

Securities Violations (Dollar General)

Date: 06/25/2007 (Date of Company Announcement)

Misconduct Type: Securities

Enforcement Agency: SEC

Contracting Party: None

Court Type: Administrative

Amount: $7,000,000

Disposition: Settlement

Synopsis: IBM agreed to pay $7 million as part of a settlement of a Securities and Exchange Commission investigation of Dollar General Corp., a client of IBM’s retail store services unit. IBM neither admitted nor denied wrongdoing in the settlement, but it consented to the entry of an SEC order directing it not to violate certain provisions of the federal securities laws. In 2004, IBM disclosed that regulators might take civil action against it for violating securities laws related to Dollar General accounting transactions dating back to 2000. Around the same time in a related matter, the SEC settled a civil action against IBM employee Kevin B. Collins for aiding and abetting Dollar General's commission of accounting fraud. See IBM Corporation misconduct instance "SEC v. Kevin B. Collins (Securities Violations)."