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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…

U.S. v. Elgawhary (Fraud and Money Laundering)

Asem Elgawhary, the former principal vice president of Bechtel Corporation and general manager of the Power Generation Engineering and Services Company (PGESCo) [a joint venture between Bechtel and Egypt’s state-owned electricity company], was charged with defrauding his former employers, laundering the proceeds, and violating federal tax laws. The government alleged that, from 1996 to 2011, Elgawhary took more than $5 million in kickbacks from power companies in exchange for awarding them more than $2 billion in contracts. He also allegedly concealed the kickback scheme by hiding the payments in off-shore bank accounts, giving false information to Bechtel executives and PGESCo board members, and, with the help of other PGESCo employees, destroying evidence. In December 2014, Elgawhary pleaded guilty to mail fraud, conspiracy to commit money laundering, and obstruction and interference with the administration of the tax laws. In March 2015, Elgawhary was sentenced to 42 months in prison and ordered to forfeit $5.2 million.

Misconduct Type
Ethics
Enforcement Agency
Multiple Agencies
Contracting Party
None
Court Type
Criminal
Disposition
Pleaded Guilty
Date of Indictment
2/10/2014
Contractors Involved Penalty
Total
Bechtel Corporation $5,200,000
Further Information Released
DOJ Press Release (March 2015) 3/23/2015
FBI Press Release (Dec. 2014) 12/4/2014
FBI Press Release (Feb. 2014) 2/10/2014

Federal Contractor Misconduct Database