CDW-Government, LLC (“CDW-G”), a subsidiary of CDW Corporation based in Vernon Hills, Illinois, has agreed to settle a whistleblower suit for $5.6 million. According to CDW’s website, it is a leading provider of technology solutions for business, government, education and healthcare, with net sales of $10.1 billion in 2012.
According to the U.S. Department of Justice, the settlement resolves allegations that, between 1999 and 2011, CDW violated the False Claims Act in connection with a General Services Administration contract. Specifically, the government alleged that CDW-G improperly charged the government for shipping; sold the U.S. products that were manufactured in countries that are prohibited by the Trade Agreements Act, such as China; and knowingly overcharged the government for information technology, equipment, services, office supplies and related products.
The allegations were first brought to light by Joe Liotine, a former sales representative for CDW-G, in a whistleblower suit filed under the qui tam provisions of the False Claims Act in 2005. As his reward, the whistleblower will receive $1,336,098 of the $5,663,902 settlement amount.