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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 Investigation of 2007 Financial Restatement

In October 2009, Navistar International announced it had reached a tentative settlement with the U.S. Securities and Exchange Commission (SEC) over its investigation into the company’s 2007 restatement of its financial results for 2002 through the first three quarters of 2005. Under the settlement, Navistar did not admit or deny any wrongdoing, and company chairman and CEO Daniel Ustian agreed to return part of his 2004 bonus. In August 2010, the SEC issued a cease-and-desist order against Navistar, Ustian, former CFO Robert C. Lannert and several former senior accounting staff, who agreed to pay a total of $362,500 in civil penalties. Navistar itself was not assessed any fines or penalties.

Misconduct Type
Securities
Enforcement Agency
SEC
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Settlement Announcement
10/19/2009
Contractors Involved Penalty
Total
Navistar Defense LLC $362,500
Further Information Released
Civil Complaints 11/30/2010
SEC Press Release (Aug. 2010) 11/30/2010
Navistar Press Release 10/28/2009

Federal Contractor Misconduct Database