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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…

SEC v. Lapine (Securities Fraud)

In March 2010, a consent and final judgment against Jay Lapine, former general counsel at McKesson HBOC (now McKesson Corporation), was entered by the United States District Court for the Northern District of California. Lapine was charged by the Securities and Exchange Commission (SEC) with securities fraud in connection with a financial reporting fraud at McKesson HBOC. The SEC complaint, filed in 2001, alleged that Lapine, together with other senior executives, participated in a long-running scheme to inflate the revenue and net income of HBO & Company, which merged with McKesson in 1999. As part of the final judgment, Lapine agreed to pay a civil penalty of $60,000. He was also stripped of his right to practice law before the SEC for five years. Lapine consented to the entry of judgment without admitting or denying the allegations of the complaint except as to jurisdiction. Lapine was acquitted in November 2009 of criminal charges in the matter. (See related McKesson instances, “McKesson/HBOC, Inc. Securities Litigation,” “SEC v. Smeraski (HBOC Securities Fraud)”, “U.S. v. McCall et al. (Securities Fraud)”, and “SEC v. McCall (Securities Fraud)”. )

Misconduct Type
Securities
Enforcement Agency
SEC
Contracting Party
None
Court Type
Civil
Disposition
Judgment Against Defendant
Date of Final Judgment
3/1/2010
Contractors Involved Penalty
Total
McKesson $60,000
Further Information Released
Complaint 11/24/2010
Final Judgment 11/24/2010
SEC Press Release 11/24/2010

See also:

Federal Contractor Misconduct Database