A corrupt telecommunications firm has been caught red-handed in a $1 million scam, accused of submitting false claims to federal agencies under the Trade Agreements Act. ADC Telecommunications Inc. will pay the United States $1 million to resolve allegations that the company knowingly manufactured and sold telecommunications goods from countries prohibited by the act.
According to court documents, from October 2005 through December 2008, ADC manufactured and sold telecommunications hardware, including communication modems, extender modules, and shelf adapters, to various federal agencies through its General Services Administration (GSA) Multiple Award Schedule contract. The company’s clients included several government agencies, including the Departments of Defense, Homeland Security, and Interior.
The alleged violations of the Trade Agreements Act are a serious offense, as the act requires that goods purchased under these contracts must be manufactured in one of a list of designated countries deemed to trade fairly with the United States. ADC’s actions demonstrate a blatant disregard for the law and a willingness to put profits over principles.
“Protecting the federal procurement process is central to the mission of the Department of Justice,” said Stuart Delery, Acting Assistant Attorney General for the Department of Justice’s Civil Division. “It is incumbent upon contractors that supply products to federal agencies to abide by the legal requirements designed to protect U.S. trade interests.”
The settlement demonstrates the Department of Justice’s commitment to ensuring that products sold to the government are made in countries that respect and adhere to our nation’s trade policies. Ronald C. Machen Jr., the U.S. Attorney for the District of Columbia, emphasized that companies doing business with the United States are expected to understand and comply with the laws governing their transactions.
GSA Inspector General Brian Miller praised ADC’s cooperation in the investigation, but made it clear that the company’s actions were unacceptable. This matter was jointly handled by the GSA Office of the Inspector General, the Justice Department’s Civil Division, and the U.S. Attorney’s Office for the District of Columbia.
This case serves as a stark reminder of the importance of upholding the law and protecting the integrity of the federal procurement process. The Department of Justice will continue to hold accountable those who would seek to exploit the system for personal gain.
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