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About POGO's Federal Contractor Misconduct Database (FCMD)
The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Ranking: 15
General Electric
GE is a diversified technology, media and financial services company. From aircraft engines and power generation to financial services, medical imaging, television programming, and plastics, GE operates in more than 100 countries and employs more than 300,000 people worldwide.
Federal Contract $: $3618.4m
Total Number of Instances: 36
Total Misconduct dollar amount: $ 113.4m
- Annual Report
- Ethics Page
- Hoovers Profile
- Lobbying Information
- Political Activity
- Press Page
- SEC 10K
- Subsidiary List
- Contracting Information
- Website
Instances of Misconduct
1. Improper Storage of PCB-Containing Equipment
“General Electric Co. has agreed to pay a $94,380 penalty as part of a settlement of an enforcement case regarding improper storage of PCB-containing equipment at its 254-acre property in Pittsfield. “The case was initiated after GE notified EPA that it had discovered two transformers and three capacitors containing PCBs were being stored improperly in Building 9 at its Pittsfield property. GE also notified EPA that one of the transformers had leaked PCB-containing oil. “Following the disclosure, GE contained the leak and undertook a facility-wide sweep to determine if other PCB-containing equipment was being stored improperly on the property. Based on that information, EPA concluded that there had been seven violations of the federal Toxic Substances Control Act (TSCA, 15 USC §§ 2601 et seq.) at 11 separate locations on the property.”... more»
2. Hanford Nuclear Reservation Litigation
In litigation that dates back to 1990, plaintiffs allege General Electric (among others) did not run the Hanford Nuclear Weapons Reservation in southeastern Washington state safely and failed to inform the public of health risks. They claim that radioiodine emissions, known as I-131, from the Hanford Reservation caused various cancers and other life-threatening diseases and seek damages under the Price-Anderson Act. In June 2002, the Ninth Circuit Court of Appeals reversed the lower court's dismissal of the claims of several thousand individuals suffering from cancer and/or other serious disease who attribute their illnesses to exposure to radioactive emissions from the Hanford facility. The appellate court also reinstated the testimony of 17 of plaintiffs’ expert witnesses. In an April 2005 “bellwether trial,” the jury found in favor of two plaintiffs, Steve Stanton and Gloria Wise, and awarded Stanton $227,508 and Wise $317,251. On appeal in 2007, the Ninth Circuit upheld the jury verdict for Stanton but reversed the verdict for Wise.... more»
3. Johnson v. General Electric (Failure to Meet Product Requirements)
Allegedly, “GE delivered jet engines to the Air Force, Navy and Army even though the company knew that certain controls and accessories in the engines did not meet the electrical bonding requirements as required under contracts with the government. The government said the allegations referred to F110-GE-100 and F110-GE-129 engines installed in the Air Force's F-16 single-engine fighter jet, F101-GE-102 engines installed in the B-1B Bomber, CFM56-2B engines installed in Air Force tankers, and other engines used in various Air Force, Navy and Army aircraft.”... more»
4. Misrepresentation of Test Procedures
General Electric “paid the United States $950,000 for allegedly misrepresenting that it had conducted certain test procedures on circuit boards for hundreds of aircraft engine controls when in fact the tests were not conducted… [GE] sold hundreds of aircraft engines with engine control circuit boards that had not undergone required ionic cleanliness, electrostatic discharge and solder purity procedures. GE, in delivering the engines to the United States, said it had completed the tests.”... more»
5. Misuse of Government Materials
According to a GAO Report cited by Senator Harkin and Representative DeFazio, General Electric Aircraft Engines paid $250,000 to settle allegations of “misuse/diversion of Government furnished materials.”... more»
6. Violations of California Pesticide Registration Requirements
“On October 18, 2004, the California Department of Pesticide Registration informed us that it would be seeking $202,959 in penalties for violations by our Betz Water business of the State of California’s pesticide registration requirements. The California Department of Pesticide Registration has since reduced its penalty demand to $160,000." The matter was ultimately settled in 2005 for $120,916.... more»
7. Emissions Violations
“GE failed to obtain PSD permits in connection with the construction of two jet engine test cells in 1981 and 1982, the modification of two jet engine test cells in 1986 and 1987, the installation of a new steam-generating boiler in 1986. The complaint also alleges that the steam-generating boiler violated the NSPS limitations for the emission of nitrogen oxides (‘‘NOX’’) during certain periods of time in 1991 and 1992. Pursuant to the proposed consent decree, GE has agreed to pay a civil penalty of $225,000 and to implement a Supplemental Environmental Project that involves the replacement of an oil based coolant with a water-based coolant for some of the lathing and milling machinery at the Lynn Facility. GE has also agreed to a cap on the overall annual NOX emissions from its 29 jet engine test cells, as well as a cap on the overall annual NOX and SO2 emissions from its four steam-generating boilers.”... more»
8. Unlawful Debt Collection Practices
50 States participated “in an approximately $97 million settlement agreement with General Electric Credit Corporation (GECC), which issues dozens of private label credit cards, together with Montgomery Ward Credit Corporation, for alleged unlawful debt collection practices from consumers who declared bankruptcy. The multistate group was led by the state attorneys general in Missouri and California.” Under the settlement, GECC and Montgomery Ward Credit together paid an estimated $70 million to approximately 70,000 consumers nationwide from whom the companies collected invalid debts. In addition, the companies paid the states attorneys general $24.5 million. GECC also paid $3 million into a consumer education trust fund.... more»
9. Violations of Florida Hazardous Waste Law
In “August of 1996 the Florida Department of Environmental Protection informed Greenwich Air Services that it was seeking penalties of $278,555 for violations of the state's hazardous waste law at its Miami facility (the facility was subsequently acquired as a portion of GE's purchase of Greenwich which was consummated in September 1997). The matter has been tentatively settled for $36,270 plus a supplemental wastewater treatment project.”... more»
10. Violations of Federal Securities Laws
“The Securities and Exchange Commission announced… that it has instituted settled enforcement proceedings against General Electric Company. The Commission charged that GE failed to fully describe the substantial benefits it had agreed to provide its former chairman and CEO John F. ‘Jack’ Welch, Jr., under an ‘employment and post-retirement consulting agreement.’ GE settled the proceedings by consenting to the entry of an Order that it cease and desist from violating the proxy solicitation and periodic reporting provisions of the federal securities laws.”... more»
11. Violation of the Clean Air Act
“General Electric Corporation will pay a $60,684 penalty to resolve Clean Air Act (42 USC §§ 7401 et seq.) violations, voluntarily disclosed by the company, at a facility outside of Albany, New York…[T]he Justice Department alleged that General Electric violated the Clean Air Act by failing to install the proper pollution control equipment on two methanol storage tanks at its silicone products division in Waterford, New York. Methanol fumes are a hazardous air pollutant that contribute to the formation of smog and can cause serious health problems. In January of 1994, when General Electric recognized the violations, they promptly reported them to federal officials. In addition, General Electric made the necessary modifications at the facility.”... more»
12. Violations of Clean Water Act
“In March 1994, EPA issued an administrative complaint against [General Electric] seeking $125,000 in penalties for violations of the Clean Water Act (33 USC §§ 1251 et seq.) at its Palmer, Puerto Rico, facility, including permit violations. The matter was settled in January 1995 for $36,000.”... more»
13. Violations of Louisiana's Groundwater Protection Act
In “January 1995, the Louisiana Department of Environmental Quality announced that it was seeking a penalty of $101,884 for alleged violations of its Groundwater Protection Act at the [General Electric’s] New Orleans, Louisiana facility. In January, 1997, [GE] settled the matter for a $70,000 Supplemental Environmental Project.”... more»
14. Violations of PCB Regulations
In “June of 1992, EPA issued an administrative complaint against the Company alleging violations of regulations issued under TSCA at its Anaheim facility, including improper storage and disposal of PCBs. The complaint sought penalties of $205,000. On March 9, 1993, EPA amended the complaint to increase the amount of the penalties being sought to $353,000. The matter was settled in January 1995 for $53,000.”... more»
15. Violations of State Pollution Discharge Elimination System Permit
New York State’s Department of Environmental Conservation alleged that General Electric’s Waterford facility committed several violations of its pollution discharge elimination system permit when it discharged various substances, including ethylene glycol, zinc, untreated and sanitary sewage, silicon oil, oil, propylene glycol, hydrochloric acid and process wastewater, into the Hudson River in 1996 and 1997.... more»
16. Antitrust Law Violations
“In an agreement that will settle an antitrust lawsuit filed in 1996 against GE, the company will remove restrictions it had imposed in software licenses with more than 500 hospitals throughout the country. The restriction prevented the hospitals from competing with GE to service medical equipment at other hospitals and at clinics.”... more»
17. Defective Dishwashers
“The U.S. Consumer Product Safety Commission (CPSC) announced… that the General Electric Co. (GE), of Fairfield, Conn., has agreed to pay the Government a $1 million civil penalty… The fine settles allegations that GE knowingly failed to report to CPSC in a timely manner a defect with certain models of dishwashers. Under the Consumer Product Safety Act (CPSA, 15 USC §§ 2075, et. seq.), manufacturers, importers, distributors, and retailers must immediately report information about potentially hazardous products to the Commission.”... more»
18. Failure to Adequately Respond to An EPA Request for Information
In “April 1996, the Environmental Protection Agency filed an action and stated that it was seeking $300,000 in penalties for the Company's failure to adequately respond to an Agency information request in 1994. In December, 1996, the Company settled the matter for $95,000.”... more»
19. Giles v. General Electric (Disability Benefits)
“An ADA award of [$590,000] was… assessed against General Electric for its refusal to reasonably accommodate a machinist with a back injury. The machinist, who had injured his back on the job, was released to return to work following a functional capacity evaluation (“FCE”) with a lifting restriction of twenty pounds. The employer rejected the restriction, sending the machinist to another doctor, who recommended his return to work with a restriction of fifty-pounds. GE also rejected this accommodation, and refused to return the machinist to work. The machinist filed for long-term disability benefits, then sued under the ADA. A jury awarded $1.2 million in damages, which the district court reduced to $300,000 in accordance with the statutory cap on ADA damages. The machinist was also awarded $141,110 in front pay and $150,837 in attorney’s fees.”... more»
20. Violations of New York Water and Hazardous Waste Laws
"As previously disclosed, on April 16, 2004, the New York Department of Environmental Conservation (DEC) informed the company that it would be seeking $97,800 in penalties for violations of the state of New York’s water and hazardous waste laws at its Waterford, New York facility. In July 2004, DEC informed the company that it was dropping certain allegations and including others pertaining to the reporting of information and increasing its penalty demand to $117,000. The matter was settled in October 2006 and the company has paid a penalty of $90,000."... more»
21. Defrauding the Government by Using a Substitution or Nonconforming Product
According to a GAO Report cited by Senator Harkin and Representative DeFazio, GE paid $3,500,000 to settle allegations that the company defrauded the Government by using a substitution or nonconforming product.... more»
22. Violations of Performance Standards (X-ray Equipment)
A test in September 1997 revealed violations of Performance Standards in x-ray equipment developed by General Electric Medical Systems. General Electric was given 15 days to submit a corrective action plan to rectify the noncompliances found during the test. This violation of the Food, Drug, and Cosmetic Act carried the potential for civil liability.... more»
23. Deviations from Equipment Regulations
In May 1997, a test conducted on equipment manufactured by General Electric Medical Systems revealed regulation violations. General Electric was given 15 days to submit a corrective action plan to rectify the noncompliances found during the test. This violation of the Food, Drug, and Cosmetic Act also carries the potential for a civil liability.... more»
24. Failure to Conform to Current Good Manufacturing Practices (Patient Monitors)
An investigation in March 1999 revealed “a serious regulatory problem involving software for [the] Solar Model 7000/8000 Patient Monitors.” The “inspection found that the devices are adulterated within the meaning of Section 501 (h) of the Act in that the methods used in, facilities or controls used for manufacturing, packing, storage, or installation of the medical devices are not in conformance with the Good Manufacturing Practices (GMP) requirements set forth in the Quality System Regulations for Medical Devices as prescribed by Title 21, Code of Federal Regulations (CFR), Part 820. Violations included “failure to establish the appropriate responsibility, authority, and interrelation of all personnel who manage, perform, and assess work affecting quality” and “failure to establish and maintain procedures for validating the device design.”... more»
25. Failure to Conform to Current Good Manufacturing Practices (X-Ray Systems)
During a 2004 inspection it was found that x-ray and fluoroscopic systems and accessories manufactured by General Electric were not manufactured in conformance with Quality System and Good Manufacturing Practices. Violations included “Failure of management with executive responsibility to ensure requirements are effectively established and effectively maintained,” “failure to establish and maintain procedures for implementing corrective and preventive actions,” and “Failure to adequately validate a process whose results cannot be fully verified by subsequent inspection and test.”... more»
26. Conradt v. NBC Universal (“To Catch a Predator” Lawsuit)
General Electric Company’s NBC Universal Inc. settled a lawsuit over the suicide of Louis William Conradt, Jr., a Texas prosecutor whom the network planned to feature on Dateline NBC's "To Catch a Predator" program. Conradt’s sister, who filed the lawsuit, claimed that the network was responsible for his death and sought more than $100 million in damages. Conradt shot himself in November 2006 when members of a police SWAT team, as part of a pedophilia sting arranged by the program’s producers, tried to arrest him at his home for allegedly attempting to solicit a minor on the Internet.... more»
27. Reporting Materially False or Misleading Financial Information in 2002 and 2003
General Electric agreed to pay a $50 million penalty to settle charges filed by the Securities and Exchange Commission alleging that, on four separate occasions in 2002 and 2003, GE misled investors by reporting materially false and misleading results in its financial statements. The SEC alleged that GE used improper accounting methods to increase its reported earnings or revenues and avoid reporting negative financial results. Without admitting or denying the allegations, GE agreed to the penalty and consented to the entry of an order permanently enjoining it from violating the federal securities laws.... more»
28. Turner v. General Electric (Defective Refrigerators)
A nationwide class-action lawsuit alleged breach of express warranty and implied warranty of merchantability, unjust enrichment/restitution and negligence with regard to General Electric’s “GE” and “Hotpoint” brand refrigerators. The plaintiffs alleged the refrigerators contained a defect that resulted in a variety of problems, including the formation of excessive moisture which caused the development of rust and water leaks along the sides and beneath the refrigerator, the formation of metal shavings and shards of plastic in the ice created in the freezer, and wavering temperature controls. The case settled in December 2005 without GE admitting any wrongdoing or liability. Among the terms of the settlement, GE agreed to pay plaintiffs’ attorney fees and other costs. GE also agreed to exchange customers' refrigerators or pay for service calls.... more»
29. Improper Aircraft Engine Maintenance in Scotland
The Federal Aviation Administration (FAA) proposed a $1.2 million civil penalty of General Electric's GE Caledonian unit for performing improper aircraft engine maintenance procedures at a repair station in Scotland. The FAA, which certifies repair stations abroad, proposed the fine for maintenance involving 101 engines from January 2005 to May 2008. The FAA alleged the company used a procedure to remove parts from engine mounts that deviated from the process outlined by the manufacturer's manual.... more»
30. Oil-For-Food Program Illegal Payments
General Electric agreed to pay $23.5 million to settle a U.S. Securities and Exchange Commission (SEC) complaint that GE bribed Iraqi government officials to win contracts to supply medical and water purification equipment under the U.N. Oil-for-Food program. The SEC alleged that, between 2000 and 2003, two GE subsidiaries and two companies GE later acquired paid $3.6 million in kickbacks in the form of cash, computer equipment, medical supplies and services to the Iraqi health and oil ministries, in violation of the Foreign Corrupt Practices Act (FCPA). GE, which neither admitted nor denied the SEC’s allegations and cooperated with the investigation, paid $18,397,949 in disgorgement of profits, $4,080,665 in prejudgment interest, and a $1 million penalty.... more»
31. Selling Defective Airplane and Helicopter Engine Blades
"General Electric Co. (GE) and two of its subcontractors paid the United States $11.5 million to settle a lawsuit that alleges that GE sold defective blades for engines in U.S. military airplanes and helicopters...The lawsuit alleged quality-control problems over a period of years involving the manufacture of several types of engine blades at GE’s Aircraft Engines division facility in Madisonville, Ky. These alleged problems included nonconformances in casting and in non-destructive testing. Two subcontractors, Howmet Corp., a subsidiary of Alcoa, and Precision Castparts Corp. manufactured unfinished castings for the blades, which GE then finished at the Madisonville facility. Both subcontractors were also named as defendants."... more»
32. Schaefer v. General Electric Co., et al. (Gender Discrimination)
Lorene Schaefer, general counsel for General Electric’s transportation unit, sued the company in federal court in Connecticut claiming that it discriminates against its female employees in pay and promotions. Schaefer sought $500 million in damages for a group of approximately 1,500 to 1,700 female employees. In January 2009, Schaefer and General Electric settled the lawsuit for an undisclosed amount.... more»
33. Thomas v. General Electric Co., et al. (Racial Discrimination)
Marcel Thomas, the CEO, president and chairman of GE Aviation Materials, filed a class action lawsuit alleging the company discriminates against African-Americans in pay and promotions. Thomas sought $450 million in damages for the class and unspecified damages on his own claims. The case settled in January 2006.... more»
34. Dredging PCBs in Upper Hudson River, New York
In February 2002, the Environmental Protection Agency ruled that General Electric must dredge approximately 150,000 pounds of polychlorinated biphenyls (PCBs) from a 40-mile stretch of the upper Hudson River in New York state. In November 2006, a federal district court in New York approved a consent decree entered into between GE and the EPA that established a framework for implementing the 2002 ruling. “The dredging will be performed in two phases with an intervening peer review of performance after phase 1. Under this consent decree, we have committed up to $0.1 billion to reimburse the EPA for its past and future project oversight costs and agreed to perform the first phase of dredging. We further committed that, subject to future agreement with the EPA about completion of dredging after completion of phase 1 and the peer review, we will be responsible for further costs, including costs of phase 2 dredging.”... more»
35. Mody v. General Electric (Age and Racial Discrimination)
Dr. Hemant K. Mody, a General Electric Co.-employed engineer of Indian descent, sued the company alleging age and racial discrimination and retaliation. He accused GE of discriminating against him based on his race/national origin and age in matters involving promotions, job assignments and benefits, and then illegally firing him after he complained about the discriminatory treatment. Mody prevailed at trial, ultimately winning $652,768 in back pay, $730,406 in front pay, $626,171 in liquidated damages pursuant to the Age Discrimination in Employment Act, $500,000 in compensatory damages and $10 million in punitive damages. In October 2007, the judge reduced the punitive damages award to $5 million, but reiterated his support of the jury’s finding of a “significant degree of reprehensible conduct.” He also awarded Mody, who died in April 2007, $630,129 in attorney fees and $29,088 in costs.... more»
36. Quality Control Violations at Software Plant
The Food and Drug Administration issued a warning letter to GE Healthcare Integrated IT Solutions over lax quality control standards at a Barrington, IL plant that makes computer software for medical imaging. The warning letter lists 12 violations, including “failure to establish and maintain adequate procedures for analyzing processes, work operations, concessions, quality audit reports, quality records, service records, complaints, returned product, and other sources of quality data to identify existing and potential causes of nonconforming product, or other quality problems.”... more»
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