Ismail J. Ramsey, U.S. Attorney | U.S. Attorney for the Northern District of California
Vimaan Robotics, Inc., a company based in San Jose specializing in computer vision and AI warehouse management solutions, has agreed to pay $1.5 million. This settlement resolves allegations that the company violated the False Claims Act by improperly obtaining funds from a grant it was not eligible for.
The issue centers around a Small Business Innovation Research (SBIR) Phase II grant awarded by the National Science Foundation (NSF). The SBIR program excludes companies majority-owned by venture capital firms from receiving such grants. According to the United States, Vimaan did not disclose its majority ownership by venture capital companies when it received the award on April 16, 2020. The company is alleged to have submitted 14 requests for disbursement of funds between June 2020 and August 2022, falsely certifying its eligibility each time.
Acting United States Attorney Patrick D. Robbins emphasized the importance of these grants supporting small businesses genuinely engaged in innovative research. "When companies evade program restrictions and obtain grants even though they are not eligible, this office will vigorously enforce the False Claims Act," he stated.
Megan E. Wallace, NSF’s Acting Inspector General, noted that entities misrepresenting their eligibility undermine the program's integrity. She commended the U.S. Attorney’s Office for its support in maintaining oversight of taxpayer funds.
Assistant U.S. Attorney Savith Iyengar managed this case for the government with coordination between the U.S. Attorney’s Office for the Northern District of California and NSF-OIG.
The resolution highlights governmental efforts to combat fraud in federal grants through tools like the False Claims Act. It is important to note that while allegations were resolved by this settlement, there has been no determination of liability against Vimaan Robotics.
