Scuba supply company pays $16 million to settle allegations it defrauded the military

Source: Aaron Greg, Washington Post, August 11, 2017

A Virginia Beach company that supplies advanced equipment for the U.S. military’s search-and-rescue operations has agreed to pay $16 million to settle allegations that it fraudulently obtained government contracts and engaged in illegal bid-rigging schemes, the Justice Department announced Thursday. … The Justice Department said the $16 million payment was one of the largest ever made in connection with small business contracting programs, enough money to put a lot of small businesses under water. But ADS isn’t so small anymore: it made about $1 billion from federal contracts last year, making it the 56th-largest defense contractor, according to Bloomberg Government. … The allegations concern a collection of federal programs meant to help small businesses learn the ropes of the complicated government procurement process and secure contracts. The Justice Department alleges the company managed to take advantage of these programs despite its size by relying on an elaborate network of smaller companies. …