Wrong Countries, Withheld Discounts on VA Sales: $14.5M

Coloplast self-disclosed that it misreported countries of origin on VA-contract products and failed to pass VA the discounts its contract required — overbilling the United States. $14,547,347.

Settled — allegations resolved by agreement. This matter ended in a settlement or consent order: Coloplast — medical product manufacturer paid to resolve the allegations below, without a criminal conviction. The facts are drawn from the official account, linked at the bottom of this page.
$14,547,347Settlement — arising from its VA contracts
OutcomeSettled (Dec. 12, 2022): $14,547,347; violations self-disclosed by the company
ForumU.S. Attorney’s Office, District of Columbia; VA OIG, VA National Acquisition Center, VA OGC

Coloplast disclosed that it misapplied the Trade Agreements Act’s substantial-transformation standard, reporting incorrect countries of origin for several products and leaving other products on its VA contract after manufacturing had moved to non-designated countries.

It also disclosed misapplying the contract’s Price Reductions Clause — failing to pass the government the discounts the contract required — which "led to overbilling the United States for certain medical and pharmaceutical products."

The $14.5 million arises from Coloplast’s contracts with the Department of Veterans Affairs specifically. A settlement of allegations; no determination of liability.

"our nation’s veterans deserve the highest quality products, at the best possible prices available"
— U.S. Attorney’s Office, District of Columbia
The system these cases ran through is run by Secretary of Veterans Affairs Doug Collins. The accountability record — the letters, the filings, the unanswered questions — is kept at DearDougCollins.com. For the veterans on the other side of the VA's machinery — including the exposure-classification fight — the hub is BrownWaterVet.com.

Source: U.S. Attorney’s Office, District of Columbia. Case file in the VA Fraud case files — part of the VA Fraud record. Cases are published as the courts decided them; amounts are stated as the Justice Department states them (billed, stolen, or ordered in restitution, as labeled).

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