McLean Contractor Agrees To Pay $742K To Settle Whistleblower Lawsuit

MCLEAN, VA — Advanced Systems Technology & Management, Inc., a McLean-based contractor specializing in science and technology-based engineering and consulting, and its CEO Bing Ran, also from McLean, agreed to pay $742,500 Thursday to settle allegations that they had used an alter ego to obtain contracts for which the company was ineligible, according to a release.

A former AdSTM employee filed a lawsuit under the whistleblower provision of the False Claims Act. The lawsuit alleged that AdSTM and Ran had conspired to convince federal agencies to fraudulently award multiple "set-aside" contracts to Qi Tech and Foredata, two companies controlled by AdSTM.

Government contractors who participate in the Small Business Administration's 8(a) Program can obtain "set-aside" contracts meant to help smaller contractors. To be eligible for set-asides, a company must be a small business, at least 51 percent owned by U.S. citizens who are disadvantaged, either economically or socially; and controlled by one or more people who are economically or socially disadvantaged.

AdSTM was not eligible to receive the set-aside contracts, and since it controlled Qi Tech and Foredata, they were also ineligible, according to court documents.

“It is vital to the purpose of the SBA’s programs that government contracts set aside for disadvantaged small businesses are issued only to those companies that are eligible," said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, in a release. "EDVA encourages anyone to come forward with information about instances where the small business set aside program has been victimized."

The whistleblower who filed the False Claims Act complaint against AdSTM and Ran is eligible to receive a share of the $742,500 settlement.