A California ceramic materials company, LoTEC Inc. (d/b/a Vesta Sciences), will pay $175,000 to resolve allegations that it committed multiple False Claims Act violations relating to awards by the National Science Foundation and the U.S. Army under the Small Business Innovation Research (SBIR) Program, U.S. Attorney Craig Carpenito announced today.
The settlement resolves allegations uncovered by the Office of Inspector General of the National Science Foundation that LoTEC Inc. transferred proceeds of the awards to an undisclosed related company, loaned award funds to other related companies and to LoTEC’s principal, certified that the principal investigator for the awards was primarily employed by LoTEC when she was not, and failed to properly account for hours worked under the awards.
“Companies that contract with the federal government need to clearly and accurately disclose how they are planning to spend public money,” U.S. Attorney Carpenito said. “The government relies on small businesses to research and innovate. But the government also relies on SBIR Program recipients to engage in open communications, to make clear disclosures, and to keep accurate records so that awarding agencies can oversee these important research projects.”
The settlement is a result of a joint investigation by the U.S. Attorney’s Office, the National Science Foundation Office of Inspector General, and the U.S. Army Criminal Investigation Command’s (USACIDC) Major Procurement Fraud Unit.
The civil settlement is not an admission of liability or improper conduct by LoTEC Inc.
The government is represented by Assistant U.S. Attorney Daniel Meyler of the U.S. Attorney’s Office Civil Division.
In this case, the defendant is LoTEC Inc., a California-based ceramic materials company. The company has agreed to pay $175,000 to settle allegations of False Claims Act violations.
The exact criminal charges against LoTEC Inc. are not specified in the press release, but it is alleged that the company committed multiple False Claims Act violations.
The city and state involved in this case are Newark, New Jersey. There is no exact date provided in the press release, but it is assumed to be in 2023.
The outcome of this case is a civil settlement of $175,000, which is not an admission of liability or improper conduct by LoTEC Inc.
Key Facts
- State: New Jersey
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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