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BROCKTON COMPANY PAYS $90,000 IN SETTLING CIVIL DISPUTE WITH UNITED STATES

 BOSTON, Sept. 22 /PRNewswire/ -- The U.S. Attorney's Office announced today that Knapp Shoes Inc. of Brockton, Mass., will pay the United States $90,000 to resolve civil claims that the company failed to provide the government full, accurate and complete information while negotiating a contract concerning the purchase of shoes for federal workers.
 U.S. Attorney A. John Pappalardo said the settlement was reached prior to the filing of a complaint under the False Claims Act against Knapp. He said that if suit had been filed, the United States would have alleged that Knapp failed to disclose to the General Services Administration (GSA) during the contract negotiations that Knapp paid the shipping costs for other large quantity customers. As a result the government contract price was $2.75 more per pair of steel-toed safety shoes.
 The United States would have alleged that this failure constituted a violation of the contract terms and the False Claims Act, which permits recovery of treble the government's actual damages plus civil penalties.
 The settlement was the result of a preaward audit in connection with a later contract and an investigation by the Boston office of the GSA Office of Inspector General; the settlement was negotiated by Assistant U.S. Attorney Suzanne E. Durrell of Pappalardo's Civil Division.
 -0- 9/22/93
 /CONTACT: Press Officer of the U.S. Attorney's Office, 617-223-9445/


CO: U.S. Attorney's Office ST: Massachusetts IN: SU:

JL -- NE014 -- 4822 09/22/93 15:39 EDT
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Publication:PR Newswire
Date:Sep 22, 1993
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