Texas-based companies Varidesk, LLC and Vari Sales Corporation (both doing business as VARI) will pay $1,100,000 to resolve allegations that they violated the False Claims Act by overcharging the General Services Administration (GSA) on their contracts from Dec. 8, 2016, through June 30, 2019.  The settlement resolves allegations that VARI knowingly failed to give the government matching price discounts that were offered to other customers, as required by their contract with the government.

Specifically, VARI had entered a Multiple Award Schedule contract with GSA, enabling federal government purchasers to buy office furniture at discounted prices. This required VARI’s compliance with “basis of award” discounts. VARI’s failure to offer price-matching discounts and refunds caused false or fraudulent claims to be submitted for payment to GSA.

This case was brought by a whistleblower under the qui tam, or whistleblower provision, of the False Claims Act. Whistleblowers can receive up to 30% of the government’s recovery. The whistleblower, or relator, former VARI sales executive Elliot Balis, will receive $187,000.

Constantine Cannon partner Alysia Solow commented: “The False Claims Act is a crucial tool in the fight against government contracting fraud. This case is an example of how the False Claims Act is used to protect taxpayer dollars by holding companies who do not comply with government contract provisions accountable.”

Acting United States Attorney Patrick D. Robbins said: “Companies must deal honestly with federal agencies and comply fully with the requirements of their federal contracts.”

Our Firm Helps False Claims Act Whistleblowers

Constantine Cannon has substantial experience representing False Claims Act whistleblowers. Please contact us if you believe you have a case. We will connect you with an experienced member of the Constantine Cannon whistleblower team for a free and confidential consultation.

United States Attorney’s Office, Northern District of California, Press Release

 

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By the Constantine Cannon Whistleblower Team

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