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Small Company Settles False Claims Case

Red River Computer Corp. of Claremont, NH, has agreed to pay $2.3 million to settle False Claims Act allegations.

The U.S. attorney for New Hampshire said federal investigators “identified concerns with respect to dozens of contracts” Red River had with various federal agencies, including the departments of Defense, Commerce and Interior; the Environmental Protection Agency; the Library of Congress; and GSA.

The small business provided computer hardware, software and services. It cooperated with the investigation.

In three separate contracts, the U.S. attorney said, Red River was paid to obtain Sun Microsystems service support coverage for federal agencies, but did not arrange with Sun to provide the service.

In other contracts the company agreed to provide Panasonic brand memory, but substituted third-party products.

In 2005 Red River agreed to provide Cisco SMARTNET for the Army, but did not complete registration of the service with Cisco and obtained a partial refund without reimbursing the Army.

The case was investigated by the FBI, Defense Criminal Investigative Service and the GSA inspector general.


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