• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Manager blows whistle on suspected fraud at Grainger

by on
in Leaders & Managers,Management Training

Brian Holbrook, a former district sales manager for W.W. Grainger Inc., an international maintenance supplier based in Lake Forest, has filed a whistle-blower lawsuit claiming the company repeatedly overcharged the U.S. government for its products.

Holbrook said Grainger signed a contract in 2005 to sell products at cost plus a fixed markup of 26%. Within months, Holbrook said, the company was charging more than the agreed-upon markup.

For example, Grainger sold an $18,000 laser-marking machine to the U.S. Air Force for $27,134—a markup of more than 50%. The company continued overcharging the government even after the fraud was exposed, Holbrook said.

Grainger spokesman Robb Kristopher said the Justice Department indicated it was willing to discuss the matter. “We believe we’re in compliance,” Kristopher said.

Holbrook said he complained repeatedly to management, resulting in credits to more than 40 government accounts, before he filed suit. The lawsuit seeks triple the amount of each overcharge, plus a civil penalty of between $5,000 and $10,000 per incident. Holbrook stands to get a cut of between 15% and 25% of the award under the federal False Claims Act.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/4579/manager-blows-whistle-on-suspected-fraud-at-grainger "

Leave a Comment