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…

Violations of SEC Rules

In June 2006, Raytheon, its former Chairman and CEO, Daniel P. Burnham, and the former Deputy CFO and Controller of Raytheon Aircraft Company (RAC), Aldo R. Servello, settled with the SEC following an investigation into improper disclosure and accounting practices relating to Raytheon’s commercial aircraft manufacturing subsidiary. Pursuant to the settlement, Raytheon agreed to pay a penalty of $12 million and $1 in disgorgement. Burnham and Servello agreed to pay disgorgement of certain past bonus amounts, pre-judgment interest and penalties in the total amounts of $1,238,344 and $34,628, respectively. In March 2007, the SEC settled enforcement proceedings in the same matter against Franklyn A. Caine, the former CFO of Raytheon, Edward S. Pliner, Raytheon’s former Controller and former lead auditor, and James E. Gray, the former CFO of RAC. The SEC charged that they were each involved in or aware of the improper practices. Without admitting or denying the SEC’s allegations or findings, Caine, Pliner, and Gray agreed to pay a combined total of $1,501,867 to settle the charges.

Misconduct Type
Enforcement Agency
Contracting Party
Court Type
Date of Settlement Announcement
Contractors Involved Penalty
Raytheon Company $14,774,840
Further Information Released
SEC Press Release (June 2006) 4/5/2007
SEC Press Release (March 2007) 4/5/2007

Federal Contractor Misconduct Database