There are allegations that Office Depot may have been over charging state and local governments for office supplies. The retailer is being accused of charging prices above what were advertised and is now in hot water with California, Florida, Texas, Missouri, Colorado, and other local governmental agencies.

The case began to surface when an ex-employee spilled the beans about the over chargers. In an article at the San Jose Mercury News it states that:

The investigations apparently were instigated by a former employee, David Sherwin, an account manager in Florida who left Office Depot in April 2008 after 12 years. In complaints to state and federal authorities, Sherwin alleges his former employer made false statements to its government customers by manipulating the U.S. Communities purchasing contract — for example, by randomly changing prices and entering false cost data in the Office Depot ordering system. That allegedly caused the agencies to buy the company’s products at higher prices than they had agreed upon.

Sherwin further alleged that three former Office Depot officials hold senior positions with U.S. Communities and that the nonprofit gets “kickbacks” from the company for lining up government buyers.

It gets better:

“Unfortunately, the media, our competitors and others in the industry may have taken advantage of the situation by promulgating Mr. Sherwin’s allegations,” the company stated. In an e-mail to the Mercury News, Sherwin said he stood by his allegations, which he has made under oath.

Here is the strange part to the story. Office Depot has paid back some $2.5 million to the states of California, was also suspending from doing business in Georgia for 5 months and also paid back the city of Berkeley, CA. for $289,000 in over charges.

Who do you believe?

In makes me want to run down to Office Depot and buy nothing! LOL

Comments welcome.

Source.