Friday, March 29, 2013

Whistle Blower Gets $1.5 Million In CDW Case

Company To Pay Government Nearly $6 Million To Settle Fraud Case

CHICAGO, IL. -- A former Illinois sales representative of an Illinois office supply company will receive $1,336,098 for providing evidence against the company.

CDW-Government LLC has agreed to pay $5.66 million to resolve allegations that it submitted false claims in connection with a U.S. General Services Administration contract, the Justice Department announced today.

Joe Liotine will receive the reward after a settlement resolves allegations that, during the period 1999 to 2011, CDW-G improperly charged government purchasers for shipping, sold products to the United States that were manufactured in China and other countries that are prohibited by the Trade Agreements Act, and underreported sales in order to avoid paying GSA its “Industrial Funding Fee,” a fee based on total contract sales that is designed to cover GSA’s costs of contract administration. 

 CDW-G is a reseller of information technology, equipment, services, office supplies and related products.

The allegations arose from a lawsuit filed in a federal court in East Saint Louis, Ill., under the quitam or whistleblower provisions of the False Claims Act. Those provisions allow private individuals known as “relators” to sue on behalf of the United States and to share in the proceeds of any settlement or judgment that may result. The relator may also be entitled to receive additional amounts from the defendant for attorneys’ fees and costs.

The claims settled by this agreement by the company are allegations only, and there has been no determination of liability.

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