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Anixter International and Corning Cable Systems LLC are paying the "U.S." $3 million to "...settle allegations that they violated the False Claims Act and the Anti-Kickback Act in bidding on a contract with the CIA..." according to the Office of Public Affairs of the Department of Justice.
According to DOJ documents:
"...The settlement...resolves claims against these contractors related to a CIA contract awarded to American Systems in early 2009 to provide supplies and services. American Systems teamed with Anixter to bid on the contract with Corning as a supplier. The United States alleged that American Systems, Anixter and Corning provided gratuities, including meals, entertainment, gifts and tickets to sporting and other events, to CIA employees and outside consultants in order to influence contract specifications that would favor the three companies in the award of the contract. The settlement also resolves allegations that the three companies improperly received source selection information from a CIA employee to whom they had provided gratuities, and that they had concealed the gratuities prior to award..."Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department of Justice, Civil Division, said:
“...This settlement shows that the United States will protect the integrity of the federal procurement process from the wrongful activities of unscrupulous contractors...Plying government officials with meals and entertainment to gain favorable treatment in the award of federal contracts corrupts the procurement process and will not be allowed...”Reportedly, the allegations resolved by the settlement were initiated by a lawsuit filed in the Eastern District of Virginia under the qui tam, or whistleblower, provisions of the False Claims Act by former Anixter sales representative, William Jones. Says the DOJ:
"...Under the False Claims Act, private citizens may sue on behalf of the United States for false claims and share in any recovery obtained by the government. Jones will receive $585,000 as his share of the government’s recovery..."The DOJ noted that:
"...The claims settled by this agreement are allegations only; there has been no determination of liability..."
There was no mention of CIA culpability by the DOJ.
