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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…

April 2010 Gulf of Mexico Oil Spill – Federal Criminal Settlement

BP Exploration and Production reached a $4.5 billion settlement with the federal government over the 2010 Deepwater Horizon explosion, oil spill, and response. The agreement resolved all criminal claims by the Department of Justice (DOJ) and civil securities fraud charges by the Securities and Exchange Commission (SEC). In its resolution with the DOJ, BP agreed to plead guilty to 11 counts of misconduct or neglect of ship officers, one count of obstruction of Congress, one misdemeanor Clean Water Act count, and one misdemeanor Migratory Bird Treaty Act count. In addition, two BP supervisors on the Deepwater Horizon (Robert Kaluza and Donald Vidrine) were charged with involuntary manslaughter, seaman’s manslaughter, and a Clean Water Act violation, and a former senior executive (David Rainey) was charged with obstruction of Congress and making false statements to law enforcement officials. (In March 2015, an appeals court threw out the seaman’s manslaughter counts against Kaluza and Vidrine. In December 2015, Vidrine pleaded guilty to a misdemeanor charge of violating the Clean Water Act. He was later sentenced to 10 months of probation. In June 2015, Rainey was acquitted at trial. In February 2016, Kaluza was acquitted at trial.) The $4 billion settlement with the DOJ includes $1.256 billion in criminal fines, a $2.394 billion payment to the National Fish & Wildlife Foundation (NFWF), and a $350 million payment to the National Academy of Sciences (NAS). BP also agreed to a term of five years’ probation and to implement measures to improve the safety of its drilling operations in the Gulf of Mexico and improve its corporate ethics policies and practices. In its resolution with the SEC, BP agreed to pay a $525 million civil penalty for misleading investors by significantly understating the oil flow rate in multiple reports filed with the SEC in April and May 2010.

Misconduct Type
Environment
Enforcement Agency
Multiple Agencies
Contracting Party
None
Court Type
Criminal
Disposition
Pleaded Guilty
Date of Settlement Announcement
11/15/2012
Contractors Involved Penalty
Total
BP P.L.C. $4,525,000,000
Further Information Released
BP Press Release 11/15/2012
Criminal Information 11/15/2012
DOJ Press Conference Remarks 11/15/2012
DOJ Press Release 11/15/2012
Plea Agreement 11/15/2012
SEC Complaint 11/15/2012
SEC Final Judgment 11/15/2012
SEC Press Conference Remarks 11/15/2012
SEC Press Release 11/15/2012
Indictment (Kaluza, Vidrine) 11/14/2012
Indictment (Rainey) 11/14/2012

See also:

Federal Contractor Misconduct Database