Deloitte To Pay $11 Million Settlement To End Federal Fraud Claims

Kathryn Watson | Reporter

Deloitte Consulting LLP will have to pay a more than $11 million settlement to the federal government to smooth over claims it defrauded taxpayers, according to the Department of Justice (DOJ).

The General Services Administration (GSA) in 2000 awarded the firm an information technology services contract that required Deloitte to reduce the prices it charged the government if it offered lower prices to certain commercial customers in that time period.

But between 2006 and 2012, Deloitte failed to follow that price reduction agreement with the government, the federal government claimed. Deloitte must pay the federal government $11.38 million, although the DOJ didn’t say how much the federal government and taxpayers lost over the alleged discrepancy.

“American taxpayers deserve fair deals and prices from GSA contractors,” GSA Inspector General Carol Fortine Ochoa said in a statement. “I appreciate the hard work and dedication that led to this significant recovery.”

Since the settlement resolves allegations against Deloitte, “there has been no determination of liability,” the DOJ said. (RELATED: Watchdog Says Feds Aren’t Screening Contractors)

“Contractors are expected to deal fairly with federal agencies when receiving taxpayer funds,” Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the DOJ’s Civil Division, said in a statement. “As this settlement demonstrates, we will take action against those who knowingly fail to live up to the terms of their government contracts.”

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