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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…

SEC Investigation

In 2003, the Securities and Exchange Commission began conducting a formal investigation in response to IPG’s restatement of earnings in August 2002. The SEC investigation was later expanded to include IPG’s restatements in 2004 and for the first three quarters of 2005. In May 2008, IPG’s McCann-Erickson Worldwide unit agreed to pay a $12 million penalty to settle the case. In settling, McCann consented to the SEC’s charges without admitting to or denying them. A separate consent decree was signed by two former McCann executives, Salvatore LaGreca and Brian Watson, who agreed to pay a total of $139,272 in penalties, disgorgement and pre-judgment interest.

Misconduct Type
Securities
Enforcement Agency
SEC
Contracting Party
None
Court Type
Administrative
Disposition
Settlement
Date of Settlement
5/1/2008
Contractors Involved Penalty
Total
Interpublic Group of Companies $12,139,272
Further Information Released
Form 10-K (excerpt) 3/4/2009
SEC Complaint (IPG) 3/4/2009
SEC Complaint (LaGreca) 3/4/2009
SEC Press Release 3/4/2009

Federal Contractor Misconduct Database