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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…

Misleading Investors About Advanced Technology Engine

The U.S. Securities and Exchange Commission (SEC) charged Navistar International Corporation with misleading investors about its development of a truck engine that could meet stricter federal emissions standards. The SEC alleged that, in 2011 and 2012, Navistar and former Navistar CEO Daniel Ustian failed to fully disclose the company’s difficulties obtaining Environmental Protection Agency certification of a truck engine able to meet Clean Air Act standards that went into effect in 2010. Navistar and Ustian also allegedly misled investors repeatedly about the status of development and certification work on the engine. Without admitting or denying the charges, Navistar reached a settlement with the SEC in which it agreed to pay a $7.5 million penalty. The SEC separately charged Ustian with misleading investors and with aiding and abetting Navistar’s violations.

Misconduct Type
Securities
Enforcement Agency
SEC
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of SEC Order
3/31/2016
Contractors Involved Penalty
Total
Navistar Defense LLC $7,500,000
Further Information Released
SEC Complaint (Ustian) 3/31/2016
SEC Order 3/31/2016
SEC Press Release 3/31/2016

Federal Contractor Misconduct Database