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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…

Faulty Ignition Switches – SEC Settlement

General Motors paid $1 million to settle Securities and Exchange Commission (SEC) charges that deficient internal accounting controls prevented the company from properly assessing the potential impact on its financial statements of a defective ignition switch found in some vehicles. The SEC alleged that GM’s internal investigation involving the defective ignition switch wasn’t brought to the attention of its accountants until November 2013, even though other GM personnel understood in the spring of 2012 that there was a safety issue at hand. Therefore, the SEC alleged, during at least an 18-month period, accountants at GM did not properly evaluate the likelihood of a recall occurring or the potential losses resulting from a recall. GM did not admit or deny the SEC’s charges.

Misconduct Type
Securities
Enforcement Agency
SEC
Contracting Party
None
Court Type
Administrative
Disposition
Settlement
Date of Settlement Announcement
1/18/2017
Contractors Involved Penalty
Total
General Motors Corp. $1,000,000
Further Information Released
SEC Order 1/18/2017
SEC Press Release 1/18/2017

See also:

Federal Contractor Misconduct Database