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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…

Kuwait Contract Bribery

IAP Worldwide Services entered into a non-prosecution agreement with the federal government and agreed to pay $7.1 million to settle allegations of conspiring to bribe Kuwaiti officials to win a government contract. In addition, former IAP vice president James Michael Rama pleaded guilty to one count of conspiracy to violate the Foreign Corrupt Practices Act for his involvement (see IAP instance, “U.S. v. Rama (Foreign Corrupt Practices Act Violation)”). Both IAP and Rama admitted to setting up a shell company and paying a consultant approximately $1.8 million between September 2006 and March 2008 with the understanding that some or all of the funds would be used to bribe Kuwaiti government officials. IAP provided the Project On Government Oversight the following statement: “James Rama departed IAP’s employment in 2007 and has not been employed by or affiliated with IAP since then. IAP has accepted full responsibility, made substantial improvements to its internal controls and compliance process, and cooperated in all ways. IAP takes this matter very seriously, is glad to have resolved it, and is firmly
committed to its ethics and compliance program.”

Misconduct Type
Government Contract Fraud
Enforcement Agency
Justice
Contracting Party
International
Court Type
Criminal
Disposition
Non-Prosecution Agreement
Date of Non-Prosecution Agreement
6/16/2015
Contractors Involved Penalty
Total
IAP Worldwide Services, Inc. $7,100,000
Further Information Released
DOJ Press Release 6/16/2015
Non-Prosecution Agreement 6/16/2015

See also:

Federal Contractor Misconduct Database