Feeds

IBM and PwC settle kickback charges

Pay $5.3m to keep government happy. Wait a minute, isn't that...?

Business security measures using SSL

IBM and accounting firm PricewaterhouseCoopers have agreed to pay a total of about $5.3m to settle allegations that they gave illegal kickbacks to reel in contracts with US government agencies.

IBM has agreed to fork over $2,972,038.50 to make amends, and PwC will pay $2,315,662.

The US Department of Justice said both IBM and PwC separately cooperated in the investigation and won't face further litigation on the matter. The department alleges that IBM and PwC knowingly solicited and made payments to a number of companies with whom they have global alliances.

Both companies have denied the kickback allegations, and said the settlement is not an admission of guilt.

"IBM did not engage in kickbacks, false claims, or any other illegal conduct alleged in the various complaints that have been filed in this matter," said IBM in a statement. "IBM's business practices and policies comply with all applicable statutes and regulations, including requirements related to government contracts."

The DoJ announced the settlement today as a part of its ongoing investigation of government technology vendors and consulting firms that has already fingered Accenture, Hewlett-Packard and Sun Microsystems.

"The payment of kickbacks or illegal inducements undermines the government procurement process," Peter Keisler, Assistant Attorney General for the Civil Division, said in a statement. "The Justice Department is acting in these cases and in the overall investigation to protect the integrity of the procurement process for technology products and services."

The charges stem from a complaint filed by Norman Rille and Neal Roberts in 2004 under the whistleblower provisions of the False Claims Act. The statute allows people who file successful actions alleging fraud in the government to receive a share of the money. That could mean some extra spending money for Rille and Roberts. The DoJ said both will receive an amount to be determined in the near future.

The government will give them a fair share, we're sure. Remember, boys, that five bucks will last longer if you buy from the dollar menu. ®

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.