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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

New York City and the New York attorney general sued FedEx, accusing the company of illegally delivering contraband cigarettes to state residents, in violation of a 2006 agreement with the attorney general and the Racketeer Influenced and Corrupt Organizations Act (RICO). The lawsuit claimed that FedEx shipped several tons of unstamped cigarettes (nearly 80 million cigarettes; approximately 400,000 cartons) to individuals other than licensed dealers or distributors between 2005 and 2012, resulting in the loss of more than $10 million in taxes. In January 2019, FedEx settled the lawsuit, agreeing to pay $35.3 million, implement internal reforms, and hire an independent compliance consultant.

Misconduct Type
Tax
Enforcement Agency
State/Local
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Settlement Announcement
1/14/2019
Contractors Involved Penalty
Total
FedEx Corporation $35,300,000

Federal Contractor Misconduct Database