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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…

Deloitte & Touche Shanghai SEC Enforcement Action

The Securities and Exchange Commission (SEC) instituted an enforcement action against Shanghai-based Deloitte Touche Tohmatsu Certified Public Accountants Ltd. (D&T Shanghai) for its refusal to provide the agency with audit work papers related to a China-based client under investigation for fraud. According to the SEC, the agency had been making extensive efforts for more than two years to obtain documents related to the firm’s work for the client, Longtop Financial Technologies Limited. The SEC charged D&T Shanghai with violating the Sarbanes-Oxley Act and the Securities Exchange Act of 1934. In January 2014, an Administrative Law Judge (ALJ) found D&T Shanghai willfully violated Sarbanes-Oxley and the Securities Exchange Act, and ordered the company to be censured and denied the privilege of practicing or appearing before the SEC for a period of six months. In February 2015, the SEC imposed sanctions on D&T Shanghai and the other China-based members of the “Big Four” accounting networks as part of a settlement. The SEC censured the firms and ordered each to pay $500,000 and admit that they did not produce documents before the proceedings were instituted against them in 2012.

Misconduct Type
Securities
Enforcement Agency
SEC
Contracting Party
None
Court Type
Administrative
Disposition
Settlement
Date of Enforcement Action Announcement
5/9/2012
Contractors Involved Penalty
Total
Deloitte LLP $500,000

Federal Contractor Misconduct Database