A $32 million cybersecurity deal between CrowdStrike and Carahsoft for IRS tools is under investigation for potentially inflating sales figures. This contract, closed on the last day of Q3 2023, was reportedly signed despite the IRS not using or purchasing the software. The timing of the deal raises suspicions of pre-booking, prompting federal investigations from the DOJ and SEC. CrowdStrike maintains its accounting practices are sound, while IRS officials deny any procurement of the software, leading to inquiries about interactions between IRS and CrowdStrike officials.
The $32 million deal to supply security tools for the IRS closed on the last day of a fiscal quarter, raising suspicions of pre-booking.
Investigators are asking witnesses about any interactions between CrowdStrike sales staff and IRS employees, and have repeatedly queried whether the agency purchased CrowdStrike software, to which they've repeatedly been told "no".
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