Samsung Agrees to Pay $2.3 Million to Resolve False Claims Allegations

iStockphoto/Thinkstock(NEW YORK) — Samsung Electronics America has agreed to pay $2.3 million to “resolve allegations” against the company.

According to the Department of Justice, Samsung had been accused of causing the submission of false claims for products sold on General Service Administration Multiple Award Schedule contracts. The electronics distributor allegedly provided resellers with false information about where products had been manufactured. That misinformation, the DOJ says, caused those resellers to provide inaccurate information to federal agencies, claiming that products made in countries not covered under the Trade Agreements Act (TAA) of 1979 were made elsewhere.

The Acting Inspector for the General Services Administration, Gen. Robert C. Erickson, said in a statement that it is, “unacceptable to sell unauthorized foreign electronics to the United States.” According to the DOJ, resellers believed they were offering electronics made in TAA-designated countries, such as South Korea or Mexico, when many of the products were manufactured in China.

The Trade Agreements Act of 1979 generally requires the U.S. to purchase products made either in the U.S. or in designated countries with which the U.S. has a trade agreement.


Copyright 2014 ABC News Radio

gettyrf_8222_wallstreetflags2028429608087

S&P 500 hits record high as stock market surges

Matteo Colombo/Getty Images (NEW YORK) — The S&P 500 hit an all-time record high on Friday, extending breakneck gains achieved in recent weeks as investors shrugged off concerns about newly imposed tariffs and war in the Middle

getty_stockmarket2183501031273751

The stock market is surging. Will it last?

Michael M. Santiago/Getty Images (NEW YORK) — The stock market has been on a tear in recent weeks, shrugging off newly imposed tariffs, caution at the Federal Reserve and war in the Middle East. The S&P 500