⏱ 2 min read
A Canadian-owned company, Advanced Global Services, and its president, Gennady Yumshtyk, have been caught in a fraud scheme involving the US Air Force and Navy’s Small Business Innovation Research (SBIR) program in New York. In 2019, the company obtained an SBIR award to develop gun barrel coating technology, but instead of conducting the research in the US, they outsourced it to a Canadian facility, violating the program’s requirements. The scheme was uncovered, and the companies have agreed to pay $223,618 to resolve the allegations.
The US Attorney’s Office and the Air Force Office of Special Investigations worked together to investigate the case, which involved false claims and misrepresentation of the company’s eligibility to participate in the SBIR program. The government alleged that the defendants were not eligible to receive funding through the program because they did not conduct the research in the US as required.
The settlement highlights the importance of protecting the integrity of the federal procurement process and ensuring that taxpayer funds are used for their intended purposes. The Air Force Office of Special Investigations has vowed to continue working with its partners to aggressively investigate and hold accountable those who attempt to defraud the Department of the Air Force.
The case is a reminder that fraud and misrepresentation can have serious consequences, and that companies and individuals who engage in such activities will be held accountable. The $223,618 payment is a significant penalty, and it serves as a warning to others who might consider attempting to defraud the government.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: New York
- Location: NY
- Source: DOJ Press Release
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