Feeds

Oracle sued for alleged fraud against US gov

'Ten of millions of dollars in overcharges'

Top 5 reasons to deploy VMware with Tegile

The US Justice Department has sued Oracle, claiming the software giant overcharged the federal government by "tens of millions of dollars".

The complaint against Oracle was originally filed by an Oracle employee, who alleged that large discounts offered to other customers were hidden from government agencies. Paul Frascella — who no longer works for Oracle — accused his employer of a "scheme...to defraud the United States government by failing to disclose deep discounts offered to commercial customers".

According to court documents filed with the US District Court for the Eastern District of Virginia, Oracle was required — under General Service Administration (GSA) Multiple Award Schedule (MAS) contracts — to offer the government the "best price given to the most favored customer". These MAS contracts allow government agencies to purchase goods from a common catalog without renegotiating with the vendor.

Frascella filed his complaint in May 2007 under the False Claims Act, which allows employees to blow the whistle when they believe their company has defrauded the government, and the Department of Justice joined the complaint in April of this year. When the DoJ joined, the court papers were unsealed.

In 1997, Frascella joined Oracle as a contract specialist in its commercial sales department, and though the company trained him not to offer commercial discounts beyond what was offered to government under "GSA rules", according to the court papers, it later instituted various schemes to avoid these restrictions. Among other things, Frascella alleges, Oracle would sell software to a reseller and the reseller would then sell it to the customer at a price well below the GSA minimum. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
UNIX greybeards threaten Debian fork over systemd plan
'Veteran Unix Admins' fear desktop emphasis is betraying open source
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
Redmond top man Satya Nadella: 'Microsoft LOVES Linux'
Open-source 'love' fairly runneth over at cloud event
Chrome 38's new HTML tag support makes fatties FIT and SKINNIER
First browser to protect networks' bandwith using official spec
Admins! Never mind POODLE, there're NEW OpenSSL bugs to splat
Four new patches for open-source crypto libraries
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.