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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 »

BearingPoint Inc.

Aiding and Abetting Financial Fraud

Date: 05/04/2007

Misconduct Type: Securities

Enforcement Agency: Non-Governmental

Contracting Party: None

Court Type: Civil

Amount: $36,900,000

Disposition: Settlement

Synopsis: BearingPoint was named as a defendant in several civil lawsuits regarding certain software resale transactions with Peregrine Systems, Inc. from 1999 to 2001. Peregrine overstated its revenue by $509 million during that period, when BearingPoint was a reseller of Peregrine’s software. A former BearingPoint employee pled guilty in 2004 to signing phony contracts for Peregrine. Purchasers of Peregrine stock alleged BearingPoint participated in or aided and abetted a fraudulent scheme by Peregrine to inflate its stock price. In September 2006, BearingPoint settled the lawsuits for approximately $36.9 million. See related BearingPoint instances, "Criminal Conspiracy" and “SEC v. Gardner, et al. (Aiding and Abetting Financial Fraud)."