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updated: 4/1/2013 8:43 AM

CDW-Government to pay $5.7 in fraud case

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Associated Press

EAST ST. LOUIS, Ill. -- The U.S. government says a federal contractor has agreed to pay roughly $5.7 million to resolve allegations the company profited by submitting bogus claims.

The deal announced Friday doesn't include any admission of wrongdoing by Vernon Hills-based CDW-Government LLC.

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The subsidiary CDW Corp. resells information technology, equipment, services, office supplies and related products.

The government's East St. Louis lawsuit alleged that from 1999 to 2011, CDW-Government improperly charged federal purchasers for shipping, illegally sold products to the U.S. that were made in China and other countries, and underreported sales.

The company says it denies the basis of the claim and is settling to avoid additional time and costs associated with drawn-out litigation.

The government says the case's whistleblower -- a former CDW-Government sales representative -- will get roughly $1.34 million.

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