August 31, 2015

PC Specialists allegedly overbilled the government for computer equipment

PC Specialists overbilling whistleblower lawsuitPC Specialists Inc., operating as Technology Integration Group (TIG), has agreed to pay the federal government almost $6 million to settle allegations the IT company inflated the price of computers sold through a subsidiary to the National Nuclear Security Administration’s (NNSA) Sandia National Laboratories in New Mexico. The San Diego-based IT company buys and resells computer equipment to other companies.

The Department of Justice alleges TIG knowingly inflated prices by failing to give rebates and discounts it received from Dell. TIG’s contract with NNSA required a disclosure of these discounts. The overbilling resulted in false claims being submitted to the government. The federal False Claims Act makes it a crime to knowingly defraud or conspire to defraud the U.S. government by falsifying claims.

The alleged fraud was brought to the Justice Department’s attention by former TIG executive  Maverick Granger of Albuquerque, New Mexico. Acting under the False Claims Act’s qui tam whistleblower provisions, Granger and his attorney filed a civil lawsuit on behalf of the federal government. Granger’s reward for his role as a whistleblower in exposing the fraud will be between 15% to 25% of the $6 million recovered by the Justice Department.

In a related incident, the U.S. Attorney General for the District of New Mexico settled allegations that three TIG executives profited from overcharging Sandia for computer equipment. The terms of the non-prosecution agreement required TIG to terminate the high level executives and pay for an independent monitor to ensure TIG’s compliance with federal contracts.

While The Cochran Firm, D.C. did not represent any of the parties involved in this particular case, our law firm provides legal representation for whistleblowers who file qui tam False Claims Act lawsuits on behalf of the government and taxpayers. If you have inside knowledge of fraud being perpetrated against a government program, please contact The Cochran Firm, D.C. to speak to our whistleblower attorneys.