February 7, 2023
Virginia Government Contractor and Its CEO Agree To Pay $742,500 To Settle False Claims Act Allegations
On February 7, 2023, the U.S. Attorney’s Office for the Eastern District of Virginia entered into a civil settlement agreement with Advanced Systems Technology and Management, Inc. (AdSTM) and the company’s former CEO, Bing Ran. AdSTM and Ran agreed to pay $742,500 to settle allegations that AdSTM fraudulently obtained contracts it was not entitled to under the U.S. Small Business Administration, Business Development 8(a) program.
AdSTM and Ran allegedly conspired to fraudulently induce Federal agencies, including DOT, to award multiple small business set-aside contracts to entities that were not eligible for these contracts, because they were controlled by AdSTM and Ran.
DOT-OIG conducted this investigation with the Defense Criminal Investigative Service, Army Criminal Investigative Division, Air Force Office of Special Investigations, Defense Contract Audit Agency, and the Nuclear Regulatory Commission-OIG.