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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…

New York Contraband Cigarette Trafficking Lawsuit

The New York State Attorney General and New York City Corporation Counsel filed a lawsuit alleging United Parcel Service unlawfully shipped over 136 million contraband cigarettes—nearly 700,000 untaxed cartons—across New York State in violation of federal and state laws and a 2005 agreement with the Attorney General’s Office. The lawsuit alleged that, between at least 2010 and 2014, UPS made more than 78,500 illegal shipments of untaxed cigarettes to consumers and other unauthorized recipients in New York State, causing a direct tax loss to the state and city of over $29.7 million and $4.7 million, respectively. The lawsuit also alleged that UPS engaged in a pattern of racketeering activity with various cigarette dealers to traffic contraband cigarettes in violation of the Racketeer Influenced and Corrupt Organizations Act (RICO). In May 2017, after finding UPS liable, a federal court ordered UPS to pay damages and penalties of $165.8 million to the state and $81.2 million to the city.

Misconduct Type
Tax
Enforcement Agency
State/Local
Contracting Party
None
Court Type
Civil
Disposition
Judgment Against Defendant
Date of Complaint
2/18/2015
Contractors Involved Penalty
Total
United Parcel Service, Inc. $246,975,614
Further Information Released
Final Judgment 5/26/2017
Complaint 2/18/2015
NY Attorney General Press Release 2/18/2015

Federal Contractor Misconduct Database