BRIBING PUBLIC OFFICIALS TO BUY EXCESS EQUIPMENT
Two Whistleblower Partners attorneys represented the San Francisco Unified School District in a False Claims Act case against NEC Business Network Solutions, a large supplier of computer systems under the government’s “E-Rate” program. E-Rate provided government subsidies for the purchase of computer equipment for school classrooms, seeking to bridge the “digital divide.” According to the complaint, NEC paid bribes and kickbacks to school officials, causing them to order excess equipment purchased with federal funds. One of the recipients of the illegal bribes was convicted and sentenced to 21 months in prison. NEC Business Network Solutions agreed to plead guilty to two federal felony counts and to pay $20.7 million in fines and restitution. Using a novel theory, the San Francisco school district “blew the whistle” on the company, and received an award of $5 million. See New York Times.
