Samsung Electronics America Agrees to Pay $2.3M in Fraudulent Country of Origin Allegations
The United States Department of Justice (DOJ) has announced that Samsung – the electronics manufacturer has agreed to pay $2.3M to resolve allegations that it caused the submission of false claims for products sold. According to the DOJ Press Release, the settlement resolves allegations that, from January 2005 through August 2013, the distributor caused resellers of its products to sell items on their General Services Administration Multiple Awards Schedule contracts in violation of the Trade Agreements Act of 1979 [TAA] by knowingly providing inaccurate information to the resellers regarding the country of origin of the goods.
The United States alleges that Samsung represented to the resellers, who in turn represented to federal agencies, that the specified products were made in TAA designated countries, generally Korea or Mexico, when the specified products were in fact manufactured in China, which is not a TAA designated country.
The allegations resolved by the settlement were originally brought in a lawsuit filed by a former employee, under the False Claims Act’s whistleblower provisions, which permit private parties to sue for false claims on behalf of the United States.
To read the entire DOJ Press Release: DOJ Press Release on False Claims Act
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