Ismail J. Ramsey, U.S. Attorney | U.S. Attorney for the Northern District of California
Varidesk, LLC and Vari Sales Corporation, operating under the name VARI, have settled allegations related to their contract with the General Services Administration (GSA) for $1.1 million. The allegations claim that VARI violated the False Claims Act by not giving the United States the same price discounts it offered to other customers, despite obligations under its contract with the GSA.
Acting United States Attorney Patrick D. Robbins stated, "Companies must deal honestly with federal agencies and comply fully with the requirements of their federal contracts. The False Claims Act is a critical tool to deter and hold accountable contractors who misuse public funds, and we will vigorously enforce it when taxpayers are overcharged."
GSA Deputy Inspector General Robert Erickson emphasized, "GSA contractors should not overcharge federal agencies at the expense of the public fisc. I appreciate the efforts of the special agents, auditors, and attorneys who worked on this case."
In 2016, VARI entered a Multiple Award Schedule contract with GSA, promising equivalent discounts to those given to other customers. The contract's price reduction clause required VARI to disclose and provide price-matching refunds when discounts to customers in the "basis-of-award" category exceeded those given to GSA.
The settlement addresses allegations that VARI knowingly failed to offer these equivalent discounts from December 8, 2016, through June 30, 2019, causing false claims for payment to be made to GSA.
The resolution also includes claims under the qui tam provisions of the False Claims Act, filed by former VARI sales executive Elliot Balis. Balis, as the Relator, will receive $187,000 from the settlement. The case is filed as United States ex rel. Balis v. Varidesk LLC, et al., 22-cv-09146-JCS (N.D. Cal.).
Assistant U.S. Attorney David DeVito managed the case for the government. The resolution resulted from efforts by the U.S. Attorney’s Office for the Northern District of California and GSA-OIG.
It should be noted that the claims resolved by this settlement are allegations only, with no determination of liability.
