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ADC Telecom To Pay $1 Million to Settle Claims Involving Improper Imports

ADC Telecommunications Inc. will pay the U.S. government $1 million to resolve allegations that it submitted false claims to federal agencies when it sold telecommunications goods manufactured in countries prohibited by the Trade Agreements Act, the Justice Department said. It said that from October 2005 to December 2008, ADC sold telecommunications hardware, such as communication modems, extender modules and shelf adapters to various federal agencies through its General Services Administration (GSA) Multiple Award Schedule contract that were knowingly manufactured in countries such as China that don't have reciprocal trade agreements with the U.S. and are not on the list of designated countries.

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The clients were government agencies such as the Departments of Defense, Homeland Security and Interior, Justice said. Compliance with the TAA is required by GSA Multiple Award Schedule contracts, and goods purchased under such contracts must be manufactured in one of a list of designated countries deemed to trade fairly with the U.S.