Menu

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…

Anticompetitive Conduct in the Municipal Bond Investments Market (SEC Settlement)

The Securities and Exchange Commission (SEC) charged GE Funding Capital Market Services with securities fraud for participating in a wide-ranging scheme involving the reinvestment of proceeds from the sale of municipal securities from August 1999 to October 2004. According to the SEC’s complaint, in addition to fraudulently manipulating bids, GE Funding CMS made improper, undisclosed payments to certain bidding agents in the form of swap fees that were inflated or unearned. These payments were in exchange for the assistance of bidding agents in controlling and manipulating the competitive bidding process. GE Funding CMS settled the SEC’s charges – without admitting or denying the allegations – by paying approximately $25 million that will be returned to affected municipalities or conduit borrowers. The firm also entered into agreements with the Department of Justice, Internal Revenue Service, and a coalition of 25 state attorneys general and will pay an additional $45.35 million. See related General Electric instance, “Anticompetitive Conduct in the Municipal Bond Investments Market (Non-Prosecution Agreement)”.

Misconduct Type
Antitrust
Enforcement Agency
SEC
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Settlement Announcement
12/23/2011
Contractors Involved Penalty
Total
General Electric $70,350,000
Further Information Released
SEC Complaint 2/29/2012
SEC Press Release 2/29/2012

See also:

Federal Contractor Misconduct Database