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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…

Conspiring to Corner the Propane Market (CFTC v. BP Products North America)

BP Products North America Inc. agreed to defer the prosecution of a one-count criminal information charging the company with conspiring to violate the Commodity Exchange Act and to commit mail fraud and wire fraud. According to the criminal information, in April 2003 and February 2004, traders working for a subsidiary of BP America Inc. conspired to manipulate and corner the market for TET propane, or propane transported in the Texas Eastern Products Pipeline Company pipeline system to the northeastern and midwestern United States. Per the agreement, BP will pay a $100 million criminal penalty and approximately $53 million in restitution. BP will also pay $25 million to the U.S. Postal Inspection Service Consumer Fraud Fund and a $125 million civil penalty to the U.S. Commodity Futures Trading Commission (CFTC). In return, the government will not to prosecute BP for a period of three years if the company fully complies with the terms of the agreement, which also requires BP to cooperate with an independent corporate monitor and with Department of Justice investigations into the propane manipulation schemes. See related BP Amoco P.L.C. misconduct instance “Conspiracy to Manipulate the Propane Market.”

Misconduct Type
Antitrust
Enforcement Agency
CFTC
Contracting Party
None
Court Type
Criminal
Disposition
Deferred Prosecution Agreement
Date of Announcement
10/25/2007
Contractors Involved Penalty
Total
BP P.L.C. $303,000,000
Further Information Released
Deferred Prosecution Agreement 5/30/2008
Complaint 10/31/2007
Form 20-F/A (excerpt) 10/31/2007
CFTC Consent Order 10/30/2007
CFTC Press Release 10/30/2007
DOJ Press Release 10/30/2007

See also:

Federal Contractor Misconduct Database