Menu

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.N. Contracts FCPA Violations (Department of Justice Settlement)

Armor Holdings (now a subsidiary of BAE Systems) paid a $10.3 million penalty to resolve violations of the Foreign Corrupt Practices Act (FCPA). Pursuant to a non-prosecution agreement with the U.S. Department of Justice, Armor Holdings accepted responsibility for its UK subsidiary’s improper payment of more than $200,000 in commissions between 2001 and 2006 to win U.N. body armor supply contracts. Armor Holdings also acknowledged that it falsely recorded the commission payments on its books and records and that it kept off its books and records approximately $4.4 million in additional payments used to obtain other foreign business. Armor Holdings acknowledged that it failed to devise and maintain an appropriate system of internal accounting controls. Armor Holdings also reached a settlement in the same matter with the U.S. Securities and Exchange Commission (SEC) (see Armor Holdings instance, “U.N. Contracts FCPA Violations (SEC Settlement)”). See related Armor Holdings instance, “USA v. Bistrong (FCPA Violation).”

Misconduct Type
Ethics
Enforcement Agency
Justice
Contracting Party
International
Court Type
Criminal
Disposition
Non-Prosecution Agreement
Date of Non-Prosecution Agreement
7/13/2011
Contractors Involved Penalty
Total
Armor Holdings, Inc. $10,290,000
Further Information Released
DOJ Press Release 7/15/2011
Non-Prosecution Agreement 7/15/2011

See also:

Federal Contractor Misconduct Database