CXtec to Pay $2 Million for FCA Violation

A company that provides communications equipment to the federal government has agreed to pay $2 million to settle a False Claims Act case alleging that the company sold federal agencies products that violated the Trade Agreements Act, as well as counterfeit goods.  According to the complaint, the company sold federal agencies products manufactured in China, Taiwan, Indonesia, Malaysia, and Thailand, in violation of the Trade Agreements Act and the express terms of the company’s contract with the federal government.  The company is also alleged to have knowingly sold counterfeit gigabit interface converters, which were purportedly manufactured by Cisco, Nortel Networks, and Extreme Networks, but in fact were counterfeit devices which had been sorted, tested, and repackaged by CXtec to avoid detection.

Read the entire article, “CXtec Agrees To $2 Million Partial Settlement Of Qui Tam Whistleblower Case”