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Samsung to pay $2.3 million for lying to the US government

Samsung agreed to pay $2.3 million to settle charges that it lied to the US.
August 20, 2014

According to the Washington Post, Samsung has agreed to pay the US government $2.3 million to settle charges that it intentionally lied to federal agencies about where a number of its products were manufactured.

Federal agencies are required to purchase products made in the United States or with countries that the US has a trade agreement with. Yet, when federal agencies bought products from Samsung, they were under the belief that specific products were manufactured in South Korea or Mexico, which are covered by trade agreements. Unfortunately, the Samsung products were actually manufactured in China which does not have a full trade agreement with the US.

According to the Justice Department, Samsung intentionally lied about where the products were made. In fact, this was only brought to life after a whistleblower, Robert Simmons, brought forth the specifics of the subject to the Justice Department.

The Department of Justice has stated that the settlement is not an admission of liability by Samsung who is not commenting on the settlement.

(Correction: The Department of Justice stated that there was no admission of liability, not Samsung as previously reported)