Varidesk, LLC and Vari Sales Corporation, operating as VARI, have agreed to a financial settlement of $1.1 million. This agreement aims to settle claims that the companies violated the False Claims Act by not providing the United States with price discounts that were extended to other customers, as required by their contract with the General Services Administration (GSA). They were also accused of falsely representing their compliance with these contractual conditions.
Acting United States Attorney Patrick D. Robbins emphasized the importance of honesty in dealings with federal agencies, highlighting the role of the False Claims Act as a critical tool to ensure accountability among contractors. He stated, "Companies must deal honestly with federal agencies and comply fully with the requirements of their federal contracts." Robert Erickson, GSA Deputy Inspector General, added, "GSA contractors should not overcharge federal agencies at the expense of the public fisc."
VARI entered into a Multiple Award Schedule contract with GSA in 2016, allowing federal government purchasers to buy office furniture at discounted prices. The contract required VARI to offer the GSA discounts equivalent to those provided to other customers under the "basis-of-award" category. If discounts were offered to others that exceeded those given to the GSA, VARI was obligated to disclose and match those discounts promptly.
The newly announced settlement addresses allegations that from December 8, 2016, to June 30, 2019, VARI failed to provide GSA with the required discounts. This resulted in false claims for payment made to the federal agency.
The settlement also concludes claims brought under the qui tam provisions of the False Claims Act by Elliot Balis, a former VARI sales executive who filed an action on behalf of the United States. Balis will receive $187,000 from the settlement. The case, titled United States ex rel. Balis v. Varidesk LLC, et al., was filed under case number 22-cv-09146-JCS in the Northern District of California.
The investigation and settlement were coordinated by the U.S. Attorney’s Office for the Northern District of California and GSA-OIG. Assistant U.S. Attorney David DeVito managed the case for the government. It is important to note that the settlement resolves allegations without a determination of liability.