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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…

False Claims on Reconstruction Contracts – Corporate Resolution of Civil and Criminal Charges

Louis Berger Group (LBG) resolved criminal and civil fraud charges related to its work on behalf of the United States Agency for International Development (USAID) and the U.S. Department of Defense. From at least 1999 through August 2007, LBG intentionally overbilled the government for overhead costs on contracts it performed overseas. The components of the settlement included: a deferred prosecution agreement (DPA) suspending prosecution of a criminal fraud charge in exchange for LBG agreeing to pay $18.7 million, make full restitution to USAID, and employ an independent monitor to oversee the company’s compliance with the DPA for two years; a civil settlement requiring LBG to pay the government $50.6 million to resolve False Claims Act allegations; and an administrative agreement between LBG and USAID. In addition, two former senior LBG employees involved in the scheme—former CFO Salvatore Pepe and former controller Precy Pellettieri—pleaded guilty to conspiring to defraud USAID.

Misconduct Type
Government Contract Fraud
Enforcement Agency
Justice
Contracting Party
Multiple Agencies
Court Type
Criminal
Disposition
Settlement
Date of Settlement
11/5/2010
Contractors Involved Penalty
Total
Berger Group Holdings $69,300,000
Further Information Released
DOJ Press Release 11/5/2010
Settlement Agreement 11/5/2010

See also:

Federal Contractor Misconduct Database