By Robert McCabe and Scott Daugherty
Virginia Beach-based ADS Inc. and its subsidiaries will pay the federal government $16 million to settle allegations that they conspired to submit false claims for payment in connection with fraudulently obtained small-business contracts, the U.S. Department of Justice has announced.
The settlement resolved allegations that “ADS, together with several purported small businesses that it controlled, fraudulently induced the government to award certain small-business set-aside contracts by mispresenting eligibility requirements,” the department said…[…]
…MJL Enterprises LLC, which supplies the military with industrial, office and medical supplies, also was implicated. The Justice Department said it “falsely claimed to be an eligible service-disabled veteran-owned company.”