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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…

Bribery and Kickbacks in Europe and Iraq – SEC Settlement

The U.S. Securities and Exchange Commission (SEC) charged Johnson & Johnson with violating the Foreign Corrupt Practices Act (FCPA) by bribing public doctors in several European countries and paying kickbacks to Iraq to illegally obtain business. The SEC alleged that, since at least 1998, J&J subsidiaries paid bribes to public doctors in Greece who selected J&J surgical implants; public doctors and hospital administrators in Poland who awarded contracts to J&J; and public doctors in Romania to prescribe J&J pharmaceutical products. The SEC also alleged that J&J subsidiaries paid kickbacks to Iraq to obtain 19 contracts under the United Nations Oil for Food Program. J&J settled the SEC’s charges by paying $48.7 million in disgorgement and prejudgment interest. J&J also paid $21.4 million to settle parallel criminal charges filed in the matter by the U.S. Department of Justice.

Misconduct Type
Ethics
Enforcement Agency
SEC
Contracting Party
None
Court Type
Administrative
Disposition
Settlement
Date of Settlement Announcement
4/7/2011
Contractors Involved Penalty
Total
Johnson & Johnson $48,666,316
Further Information Released
SEC Complaint 4/8/2011
SEC Press Release 4/7/2011

See also:

Federal Contractor Misconduct Database