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OVERCHARGE: Massachusetts Inspector General
Forces W.B. Mason to Refund $300,000 to State and Local Agencies.
Boston, MA — Resolution Reached in Billing Discrepancy Case Involving Office Supply Retailer W.B. Mason: Boston, MA — Inspector General Jeffrey S. Shapiro announced today that the Office of the Inspector General (OIG) has successfully resolved a significant billing discrepancy issue involving W.B. Mason, a major office supply retailer. The resolution centers on W.B. Mason’s improper pricing practices through a state contract, which led to overcharges for state and local agencies.The matter came to light following a complaint lodged with the OIG, alleging that W.B. Mason had billed state and local agencies at rates higher than those stipulated in a pre-negotiated state contract. The investigation revealed that over a five-year period, W.B. Mason had inadvertently charged these agencies a total of $284,157.29 more than the agreed-upon prices.
Upon receiving the complaint, the OIG initiated a thorough investigation into W.B. Mason’s pricing practices. The investigation uncovered that the overcharges were not intentional but resulted from administrative errors. Despite the inadvertent nature of the issue, the financial impact on the affected agencies was substantial.
In response to the findings, W.B. Mason has agreed to a settlement that includes several key components: Refunds: The company will refund nearly $300,000 to rectify the overcharges. This amount includes: A portion allocated to the Commonwealth’s General Fund to reimburse state agencies for their overpayments.
Another portion designated to cover the costs incurred by the OIG during the investigation.
Credits: Entities that were overcharged by $50 or more will receive credits towards future purchases. Any unused credits from these transactions may be converted into cash refunds.Statement from IG Shapiro:Inspector General Shapiro underscored the importance of adherence to contractual terms, stating, “While this settlement represents less than one percent of the total sales under the contract, it is crucial that companies working with the state adhere strictly to agreed-upon pricing. Public funds must be managed with the utmost integrity.”
IG Shapiro commended both the OIG investigative team and W.B. Mason for their roles in resolving the billing discrepancies. “I want to thank the OIG team for their diligent work in uncovering these discrepancies and to W.B. Mason for their cooperation in addressing the issue. Their commitment to resolving the situation is appreciated.”
This resolution aims to ensure that similar issues are prevented in the future and that state and local agencies are compensated for the overcharges they endured.
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