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…

Aiding and Abetting Financial Fraud

BearingPoint was named as a defendant in several civil lawsuits regarding certain software resale transactions with Peregrine Systems, Inc. from 1999 to 2001. Peregrine overstated its revenue by $509 million during that period, when BearingPoint was a reseller of Peregrine’s software. A former BearingPoint employee pled guilty in 2004 to signing phony contracts for Peregrine. Purchasers of Peregrine stock alleged BearingPoint participated in or aided and abetted a fraudulent scheme by Peregrine to inflate its stock price. In September 2006, BearingPoint settled the lawsuits for approximately $36.9 million. See related BearingPoint instances, “Criminal Conspiracy” and “SEC v. Gardner, et al. (Aiding and Abetting Financial Fraud)."

Misconduct Type
Securities
Enforcement Agency
Non-Governmental
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Settlement (approx.)
9/1/2006
Contractors Involved Penalty
Total
BearingPoint Inc. $36,900,000
Further Information Released
SEC 10-Q (pp. 8 and 10 of 11) 5/4/2007

See also:

Federal Contractor Misconduct Database