Defense Contractor to Pay $16 Million for Small Business Fraud

Virginia-based equipment supplier ADS Inc. will pay $16 million to settle awhistleblower-initiated False Claims Act lawsuit which charged the company with illegally qualifying for the  Service-Disabled Veteran-Owned Small Business Contracting Program and the 8(a) Program for small businesses and businesses owned by minorities, women, and veterans. Under terms of the settlement, the whistleblower will receive approximately $2.9 million

This is one of the largest settlements ever obtained for small-business contract eligibility fraud. ADS supplies equipment and logistics to the U.S. Departments of Defense and Homeland Security.

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