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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Supreme Fuels Trading v. Sargeant (Bribery)

A federal lawsuit alleged International Oil Trading Company engaged in a conspiracy to pay bribes to Jordanian government officials to secure the exclusive right to transport fuel across Jordan to American military forces in Iraq. The lawsuit, filed by competitor Supreme Fuels Trading FZE, alleged IOTC and its owners – Harry Sargeant, III, and Mustafa Abu-Naba’a – paid bribes to key Jordanian officials to obtain a letter of authorization, which is required in order to bid on the fuel transport contracts, effectively eliminating competition and causing the U.S. government to pay more for fuel. In October 2008, the House Committee on Oversight and Government Reform, which looked into IOTC’s contracts, reported to Secretary of Defense Robert Gates that IOTC “appears to have engaged in a reprehensible form of war profiteering” and may have overcharged the U.S. government as much as $180 million. Committee Chairman Henry Waxman has asked for a Defense Department investigation. In May 2011, the court ruled in favor of Supreme Fuels and awarded it $5 million. See related International Oil Trading Company instance, “Al-Saleh v. Sargeant (Fraud).”

Misconduct Type
Ethics
Enforcement Agency
Non-Governmental
Contracting Party
Defense - General
Court Type
Civil
Disposition
Judgment Against Defendant
Date of Filing
10/22/2008
Contractors Involved Penalty
Total
International Oil Trading Company $5,000,000
Further Information Released
Final Judgment 9/24/2011
Complaint 3/3/2009
Letter from Rep. Waxman to Sec. Def. Gates 3/3/2009

See also:

Federal Contractor Misconduct Database