A recently unsealed lawsuit against Florida-based Capitol Supply Inc. alleges that the company sold Chinese-manufactured office supplies to federal agencies in violation of the Trade Agreements Act. If proven, Capitol Supply could be liable for submitting false claims to the government, because the company certified in its contracts that it was selling only materials originating in the United States or other “certified countries.” Capital Supply’s overall government sales totaled $23 million in 2012 and $35 million in 2011, although the government’s allegations are presently limited to the sale of $400,000 worth of paper shredders. The suit originated as a qui tam case brought by Louis Scutellaro, the owner of another federal supplier.

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