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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. Galleon Management LP, et al. (Insider Trading)

The Securities and Exchange Commission charged Raj Rajaratnam and his hedge fund advisory firm, Galleon Management LP, with engaging in an insider trading scheme that generated more than $25 million in illicit gains. The SEC alleged that Rajaratnam obtained insider tips and confidential information from friends and business associates about corporate earnings or takeover activity at several companies, which he then used to illegally trade on behalf of Galleon. The SEC also charged six others, including IBM senior vice president Robert Moffat, who allegedly provided inside information about Sun Microsystems. All of the defendants were charged with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In March 2010, Moffat pleaded guilty to two criminal counts in the matter (see related IBM instance, “U.S. v. Moffat (Insider Trading)”). In February 2011, Moffat reached a settlement with the SEC, which permanently barred him from acting as an officer or director of a publicly traded company.

Misconduct Type
Securities
Enforcement Agency
SEC
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Filing
10/16/2009
Contractors Involved Penalty
Total
IBM Corporation $0
Further Information Released
SEC Press Release (Feb. 2011) 2/10/2011
Complaint 10/27/2009
SEC Press Release (Oct. 2009) 10/27/2009

See also:

Federal Contractor Misconduct Database