N.H. computer firm to pay $2.3m to settle U.S. claims

Claremont-based Red River Computer Co. Inc., has agreed to pay $2.3 million to settle charges that it violated federal false claims laws in contracts with various federal agencies.According to the Justice Department, the reseller of computer products violated the False Claims Act by failing to follow dozens of contracts it had with several agencies, including the Defense Department, Commerce Department, Interior Department, Environmental Protection Agency, the Library of Congress and the General Services Administration.Among the claims filed, according to the Justice Department, was one in which Red River had agreed to obtain Sun Microsystems service support coverage for certain server boards, but failed to get the coverage despite being paid to do so.In another, the firm said it would provide Panasonic Corp.-branded memory for computers and substituted another product without informing customers, the Justice Department said.And in a 2005 contract, Red River agreed to provide Cisco SMARTNET for the U.S. Army, but failed to register with Cisco and even obtained a partial refund without reimbursing the Army.Under the False Claims Act, the government can recover treble damages and $5,500 to $11,000 for each false or fraudulent claim filed.The company did not a call seeking comment. — JEFF FEINGOLD/NEW HAMPSHIRE BUSINESS REVIEW