US Reseller Insight Enterprises has agreed to pay the Department of Justice $1m to settle charges that it falsely presented itself as a small company to gain advantage in contract negotiations.
Comark Government & Education Services, a subsidiary of Insight Enterprises, falsely claimed it was a small business to get itself on a list of government-approved suppliers. Any firm on the General Services Administration list can sell to government agencies using a quicker procurement process. The list is run by the Small Business Administration (SBA).
The SBA found that Comark misrepresented its size when it applied to the list in 1996. Insight bought the firm in 2002 and withdrew from the list in 2005.
The SBA investigated after receiving complaints. It said, even though Insight admitted no liability, the settlement sends a strong message to companies to be accurate when getting certified.
Insight bought UK reseller Action Computer Supplies in 2001 for £27m.
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