Feeds

Oracle sued for alleged fraud against US gov

'Ten of millions of dollars in overcharges'

Boost IT visibility and business value

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. ®

Boost IT visibility and business value

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Munich considers dumping Linux for ... GULP ... Windows!
Give a penguinista a hug, the Outlook's not good for open source's poster child
Intel's Raspberry Pi rival Galileo can now run Windows
Behold the Internet of Things. Wintel Things
Linux Foundation says many Linux admins and engineers are certifiable
Floats exam program to help IT employers lock up talent
Microsoft cries UNINSTALL in the wake of Blue Screens of Death™
Cache crash causes contained choloric calamity
Eat up Martha! Microsoft slings handwriting recog into OneNote on Android
Freehand input on non-Windows kit for the first time
Linux kernel devs made to finger their dongles before contributing code
Two-factor auth enabled for Kernel.org repositories
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
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.