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…

Medicine Shoppe Pharmacy Kickbacks

Cardinal Health agreed to pay the United States $8 million to resolve claims that it violated the False Claims Act by paying $440,000 to induce the owner of a chain of pharmacies to purchase Cardinal’s prescription drugs. Pharmacy consultant Kevin Rinne and pharmacy owner R. Daniel Saleaumua alleged that Cardinal offered them $300,000 in cash and $140,000 in discounts to get Saleaumua’s seven Kansas City-area pharmacies to switch to Cardinal as a supplier, an arrangement that, according to federal prosecutors, constituted an illegal kickback.

Misconduct Type
Enforcement Agency
Health and Human Services
Contracting Party
Court Type
Date of Settlement Announcement
Contractors Involved Penalty
Cardinal Health, Inc. $8,000,000
Further Information Released
DOJ Press Release 5/14/2011

Federal Contractor Misconduct Database