Click here for a free download of the latest Adobe Flash Player.

Tools

Office Depot investigation: Who's responsible for overcharging government customers?

By Jeremiah Jacobsen

FORT MYERS, Fla. - New accusations are flying in all directions as the Lee County School District looks into a Fort Myers man's accusations of massive overcharging by Office Depot.

WINK News obtained a letter sent by Office Depot to the city auditor in Clearwater, Florida, one of many government groups reviewing their office supply contracts with the company. In it, Office Depot blasts Clearwater's audit as inaccurate. But, the company also acknowledges some of its government customers are paying too much.

The string of investigations started with David Sherwin, who left his job as a government account manager with Office Depot in 2008, claiming the company was overcharging for its office supplies.

"Once I had a crisis of conscience, I realized I had to make good on everything I've done and that Office Depot has done," Sherwin said.

Sherwin says Office Depot offered its government customers two price plans, but pushed customers toward "option two" which gave customers a flat 10-percent discount. Sherwin says, despite what looked like a great discount, "option two" often had a higher total pricetag.

An audit last year found Lee County had been overcharged more than $58,000 by using "option two" between 2006 and 2008.

Sherwin's allegations have led to similar audits; and some governments, including the entire state of Georgia, have dropped contracts with Office Depot.

In a written response to the city of Clearwater's audit, an Office Depot manager acknowledged the pricing difference, saying, "It was not uncommon for customers to choose option 2, even though it may have been more expensive than option 1, because it was perceived as a simpler and more convenient price plan."

Sherwin says he and other account managers were told to mislead agencies into taking the "more convenient" but pricier option.

"I was someone from Office Depot in a high level position that was actually asked to take part in defrauding these organizations," Sherwin said.

In a statement to WINK News, Office Depot says Sherwin is to blame for overcharging several government accounts. The company says several of Sherwin's accounts, including Lee County, were unaware he had switched them to the higher priced plans, and the agencies have been credited the difference. Office Depot says Sherwin was later terminated for "workplace misconduct," including sending profane e-mails to senior management.

Office Depot remains under investigation by the Florida Attorney General's Office. The Lee County School District says it will review its past contracts with Office Depot and meet with the company soon to seek a resolution.
This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.
More On Demand