Big Tech IT Distributor Carahsoft Raided by FBI in Virginia

(Bloomberg) -- Federal agents on Tuesday searched the Washington-area offices of Carahsoft Technology Corp., a major distributor of technology products to government agencies, according to people familiar with the matter.

FBI and Defense Criminal Investigative Service agents were seen at Carahsoft’s headquarters in Reston, Virginia, collecting documents and employee computers, said John Weiler, chief executive of the IT-Acquisition Advisory Council. Because of his work in the government technology contracting space, Weiler said he was informed of the search by multiple people with direct knowledge of it. 

A Carahsoft employee at the Virginia office, who asked not to be named because they were not authorized to discuss the matter, confirmed that staff had been notified of the FBI raid internally.

“Representatives from the Department of Justice came to the Carahsoft office today as they are conducting an investigation into a company in which Carahsoft has done business in the past,” said Mary Lange, a Carahsoft representative.

“Carahsoft is fully cooperating on this matter,” she said. “We are operating business as usual.”

A FBI spokesperson said the agency “conducted court-authorized law enforcement activity” on the street where Carahsoft has its offices but declined to elaborate.

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Carahsoft is a privately-held company that since its founding in 2004 has grown into a dominant player in the government technology procurement market. Last year, it ranked 45th on Forbes' ranking of largest private companies in the US, with $11 billion in estimated revenue and more than 2,400 employees.

The FBI action was previously reported by Nextgov/FCW.