BAY AREA NEWS
Attorney General Investigating Office Depot
Company accused of overcharging public agencies, including Berkeley and San Francisco
By JACKSON WEST
Updated 4:23 PM PDT, Tue, Aug 4, 2009
Next time you think to complain about wasteful government spending, you might note that privateers sometimes try to profit from public contracts.
Office Depot is being investigated for widespread overbilling, and has already paid $2.5 million back to the State of California.
In Berkeley, an audit concluded that the company had overcharged the city for supplies, and has had to pay back $289,000.
A former employee is accusing the company in a civil suit of asking him to falsify records in order to coverup the excess money charged to Berkeley.
And the National Office Products Alliance, a trade association, has called on the state attorney general to investigate US Communities, a government purchasing cooperative based in Walnut Creek which does some business with Office Depot, over allegations that it has received $20 million in so-called "kickbacks." A representative of US Communities says the allegations are "baseless" and a "total misrepresentation" of the nonprofit's role in facilitating contracts.
Beyond California, Office Depot is being investigated in Florida, Missouri, Texas, Colorado, Ohio and by the nation's General Services Administration, the Department of Defense and Department of Education.
San Francisco is currently conducting its own audit, and is looking for a new office supply provider.
So much for assuming that big box shops like Office Depot always offer the best prices.
Attorney General Investigating Office Depot | NBC Bay Area
Aug 4, 2009 ... Company accused of overcharging public agencies, including Berkeley and San Francisco ... Beyond California, Office Depot is being investigated in Florida ... ink should be reason enough for a full federal investigation. ...
http://www.nbcbayarea.com/news/politics/Attorney-General-Investigating-Office-Depot-jw-52448992.html - - Cached - Similar pages
Hey Twodogs, when did you short ODP @ $.6??? honestly!
I feel sorry for you and understand your desperation. I do not think all your bashing will make the stock price go down. Instead, you will force people to do more research and they will end up buying ODP at this level as I did.
The best thing for you would probably is to cut your losses and save time and energy. Otherwise you will be on this board for a very longtime and will be very grumpy old man.
Appreciate your post and info on the ongoing in investigations.
"Office Depot is being investigated for widespread overbilling, and has already paid $2.5 million back to the State of California."
"In Berkeley, an audit concluded that the company had overcharged the city for supplies, and has had to pay back $289,000."
The state of California and Berkeley are
still doing business with Office Depot.
Even thou this may seem like big numbers
they are not. California is a huge state
with the economy more than some well know countries. Them penalties have to be more than that. Slap on the wrist and
States are going to have to stop doing business with ODP to materially effect the company. That is not happening right
now. The investigations are in some cases allow a closer working relationship.
If fraud was found the FBI would be all over this. Its not turning out that way.
This just allows investors to accumulate
on the swings before the big jump. If this company goes pass 10. The equity
will provide funding for more contracts
and more stores worldwide.
It seems with California blowing-up in Office Depot's face, the investigations are now coast to coast.
Those who find false solace in the fact that nothing has yet come of the investigations are fooling themselves, the longer the investigations go on, normally the worse the result for those under investigation.
Office Depot will become a text book case study of how a well run, honest company can be destroyed when corporate crooks, Steve Odland, Chuck Rubin and Steve Schmidt bring their culture of greed and deceipt to a company.
It is now only a matter of time before it catches up with them, and they get what they deserve, jail would be too good. They ruined Office Depot and enriched themselves.
The stock price and position of office depot verses the US Communities Contract are already factored in. Coming from the middle 40,s down to cents and then to 5 ranges.
Sure investigations take time but at sales of 13 billion a year verses 700 million on US Communities. Even if it takes 2 more years that would be 26 to 30 billion in sale
verses 1.3 billion on US Communities. There is no comparison. States and the Military are still doing business with Office Depot. Nothing has stop except minor overcharges. How is 4% of sales going to crash a company that is currently obtaining 25+ million dollars ever 90 days to its cash position.
All parties will in the end reach a common understanding
with the most charged characters getting their do. Office need to be more focus on business and not these investigations. Treat people right and do business in a professional way.
No way these investigation are going to kill the company its just that these contracts make up so little of the companies gross sales. Besides do you see other corporation going in and fill the void. Don't think so. Doing business with the government is very tough and next to impossible just to break even.