ADC Telecommunications Inc. will pay the U.S. government $1 million to resolve allegations that it submitted false claims to federal agencies when it sold telecommunications goods manufactured in countries prohibited by the Trade Agreements Act (TAA).
The Justice Department said from October 2005 through December 2008, ADC manufactured and sold telecommunications hardware, such as communication modems, extender modules and shelf adapters to various federal agencies through its General Services Administration (GSA) Multiple Award Schedule contract.
“This settlement resolves allegations disclosed by the company that it knowingly manufactured and sold products from countries such as China that do not have reciprocal trade agreements with the United States and are not on the list of designated countries,” the department said in a statement. “The client government agencies included a number of federal agencies, including the departments of Defense, Homeland Security and Interior.”
Compliance with the TAA is required by GSA Multiple Award Schedule contracts. Goods purchased under these contracts must be manufactured in one of a list of designated countries deemed to trade fairly with the United States.
“We expect all companies who do business with the United States to understand and comply with the laws that govern their transactions,” said Ronald C. Machen Jr., the U.S. attorney for the District of Columbia.
The GSA inspector general said ADC cooperated with the government’s investigation.