U.S. Firm to Pay $450,000 for Alleged Sale of China Products to U.S. Gov't
Direct Resource Inc. has agreed to pay the government $450,000 to resolve allegations that the company falsely claimed payment in violation of the Trade Agreements Act (TAA), which prohibits the sale of products to federal agencies from countries that do not have a reciprocal trade agreement with the United States, the Justice Department said May 8, 2012.
The Columbus, Ohio, company allegedly knowingly sold products from China, a country that does not have such an agreement with the United States. Direct Resource sells a variety of products to U.S. agencies, including office supplies. The General Services Administration (GSA) contracts at issue require that all products sold to the U.S. government be manufactured in one of a list of designated countries deemed to trade fairly with the United States.
“American businesses must get a fair shake in the government contracting process,” said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. “When contractors violate the Trade Agreements Act, we will step in to hold them accountable. This settlement makes clear the depth of our commitment to ensuring that government contractors play by the rules.”
Whistleblower Lawsuit
The allegations arose from a whistleblower lawsuit filed in a federal court in the District of Columbia under the whistleblower, provisions of the False Claims Act. Those provisions allow private individuals to sue on behalf of the United States and to share in the proceeds of any settlement or judgment if the suit is successful. The whistleblower, Louis Scutellaro, in this case will receive $67,500 of the total recovery as a statutory award, said DOJ.
No Determination of Liability
The claims settled by this agreement are allegations only, and there has been no determination of liability, said the Justice Department. The matter was investigated by GSA’s Office of the Inspector General, the U.S. Attorney’s Office for the District of Columbia and the Justice Department’s Civil Division.