According to the Department of Justice, EMC corporation has paid $87.5 million to settle a False Claims Act case against it. As previously reported by fraudblawg, the DoJ contends that EMC made misrepresentations to the Government Services Administration in negotiating a contract. EMC allegedly purported to make certain assurances that GSA would be given a competitive price when, in fact, EMC knew those assurances to be worthless. The DoJ further alleged that EMC paid kickbacks to independent agencies in exchange for thier recommendation that GSA buy EMC’s products and services. The FCA action was commenced in 2003 by a qui tam whistleblower.
To report federal procurement fraud, contant Frohsin & Barger.
[…] After reporting these problems up the chain of command at Oracle with no results, Frascella filed suit under the qui tam provisions of the False Claims Act, which permits relators to share as much as 15-25% of any government recovery. DoJ’s intervention in this case comes on the heels of a $87+ million settlement with EMC Corporation similar allegations last month. […]
[…] previously has reported similar settlements, including a recent settlement of $87.5 million with EMC Corporation. Whistleblowers Rille and Roberts may share in over $10 million as a result of the […]