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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…

Arms Export Control Act Violation (Transfer of Rocket Data to China)

Hughes Electronics Corp. and Boeing resolved civil charges of violating the Arms Export Control Act, agreeing to a $32 million settlement. The charges involved the transfer of rocket data to China in 1995 and 1996 by Hughes Space & Communications, which Hughes Electronics sold to Boeing in October 2000. Of the $32 million fine, $12 million was suspended “on the condition that over a five-year period, Boeing will apply $6 million and Hughes will apply $2 million to offset the costs associated with remedial compliance measures required in the consent agreement.” The remaining $4 million of the suspended amount was credited back to Boeing and Hughes for compliance-strengthening measures they had already undertaken. POGO is unable to determine Boeing’s share of the unsuspended $20 million civil penalty.

Misconduct Type
Import/Export
Enforcement Agency
State Dept.
Contracting Party
International
Court Type
Civil
Disposition
Settlement
Date of Settlement
3/4/2003
Contractors Involved Penalty
Total
Boeing Company $6,000,000
Further Information Released
Charging Letter 5/31/2008
Order 6/19/2006
State Department Press Release 6/19/2006

Federal Contractor Misconduct Database