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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…

Foreign Corrupt Practices Act SEC Investigation

Daimler AG resolved a civil complaint filed by the U.S. Securities and Exchange Commission (SEC) alleging the company engaged in a repeated and systematic practice of paying bribes to foreign government officials to secure business in countries around the world. The SEC alleged that, from 1998 to 2008, Daimler and certain of its subsidiaries paid at least $56 million in improper payments over a period of more than 10 years in at least 22 countries. The SEC also alleged that Daimler also paid kickbacks to Iraqi ministries in connection with direct and indirect sales of motor vehicles and spare parts under the United Nations Oil for Food Program. The SEC accused Daimler of violations of the Securities Exchange Act of 1934 by making illicit payments to foreign government officials in order to obtain or retain business, failing to have adequate internal controls to detect and prevent the payments, and by improperly recording the payments in its books and records. Without admitting or denying the allegations, Daimler agreed to pay $91.4 million in disgorgement of profits. See related Daimler AG instance, “Foreign Corrupt Practices Act Criminal Investigation.”

Misconduct Type
Securities
Enforcement Agency
SEC
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Settlement Announcement
4/1/2010
Contractors Involved Penalty
Total
Daimler AG $91,400,000
Further Information Released
Complaint 5/11/2010
Daimler AG Press Release 5/11/2010
SEC Press Release 5/11/2010

See also:

Federal Contractor Misconduct Database