Fortinet settles charges of selling intentionally mislabeled Chinese-made tech to U.S. military
Security vendor Fortinet has agreed to pay the equivalent of $545,000 to settle allegations it illegally sold the U.S. military Chinese technology disguised as American-made equipment, the U.S. Department of Justice announced. The Sunnyvale, California-based cybersecurity company agreed to pay the government $400,000 and provide the U.S. Marine Corps with equipment valued at $145,000 to resolve charges it violated the False Claims Act from January 2009 until the fall of 2016, according to a statement. Fortinet acknowledged that an employee responsible for supply chain management altered labels on products to make them appear compliant with the Trade Agreements Act, a law prohibiting federal agencies from acquiring products in specific countries. The unnamed employee directed others at Fortinet to include the phrases “Designed in the United States and Canada” or “Assembled in the United States” before those products were sold to distributors and resellers who resold the technology to the government. “Contractors […]
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