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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