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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…

Amertek, et al. v. Canadian Commercial Corp. (Deceit and Breach of Fiduciary Duty)

In August 2003, after a seven-year legal battle, the Ontario Superior Court of Justice ordered the Canadian Commercial Corporation and the Attorney-General of Canada to pay restitution, punitive damages and other costs and disbursements to Ontario truck body manufacturer Amertek Inc. The court ruled that Amertek and its investors were unsuspecting victims of “shocking behavior” on the part of the CCC, who conspired to harm Amertek while defrauding the U.S. government. CCC officials told the U.S. Army that Amertek had the ability to fulfill a supply contract. In reality, the officials knew Amertek could not handle the deal, but concealed that from both Amertek and the Army to avoid paying substantial penalties. In July 2005, the Ontario Court of Appeal overturned the trial decision relating to Amertek (“CCC’s conduct in its dealings leading to its contract with Amertek was not grounded in fraud or deceit.”) but let stand the judgment relating to the individual investors, who were awarded damages and costs of approximately $6 million (CDN$8,307,966).

Misconduct Type
Government Contract Fraud
Enforcement Agency
Non-Governmental
Contracting Party
International
Court Type
Civil
Disposition
Judgment Against Defendant
Date of Appeal
7/5/2005
Contractors Involved Penalty
Total
Government of Canada (CCC) $5,963,767
Further Information Released
Appeal 4/25/2007

Federal Contractor Misconduct Database