Software company settles fraud case for $524,947

ALEXANDRIA, Va. – Vianair Inc., an airport management software company located in Naples, Florida, agreed to pay $225,000 and forgo $299,947 remaining unpaid on a National Science Foundation (NSF) grant to settle False Claims Act allegations involving statements made in connection with a Small Business Innovation Research (SBIR) grant awarded by the NSF.

The government alleged that Vianair performed grant work outside of the United States, which is expressly prohibited by the terms and conditions of the grant funding agreement and interim reports, and contrary to Vianair’s grant proposal, and, separately, that Vianair failed to maintain timesheets on NSF-related grant efforts, while falsely certifying compliance with both conditions. NSF suspended payments on the grant when it learned of the conduct. At the time, $299,947 was the balance remaining on the grant that had not yet been transmitted to Vianair.

“The requirement that research associated with these grants be conducted in the United States is intended to protect our nation’s security, and the recordkeeping requirements are important to protect taxpayer resources,” said Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia. “When grantees fail to comply with those requirements, my office will pursue ardent enforcement to safeguard American citizens and the public treasury. I thank the NSF Office of Inspector General for ensuring that grant requirements are faithfully observed.”

“SBIR awards are highly competitive grants intended to fund American-owned small businesses to conduct U.S.-based research that will lead to the commercialization of innovative new products and services,” said Megan E. Wallace, Acting Inspector General of the National Science Foundation. “This investigation resulted from the NSF Office of Inspector General’s proactive initiative to protect national security interests by identifying SBIR recipients who improperly operate outside the U.S. The NSF Office of Inspector General is committed to vigorously pursuing oversight of these taxpayer funds. I commend the U.S. Attorney’s Office for supporting this effort.”

The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the National Science Foundation Office of Inspector General.

The matter was investigated by Assistant U.S. Attorney Gina Kim.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

The civil claims settled are allegations only; there has been no determination of civil liability.