Two biotechnology firms in Silicon Valley and their co-founder pays greater than $10 million to resolve allegations that they engaged in improper billing to federal grants, the Division of Justice introduced on Dec..21.
Dr. Paul Andrew Rhodes is the co-founder of iSense, LLC and Particular Diagnostics Inc. Particular Diagnostics designs antimicrobial susceptibility checks and iSense develops functions for colorimetric sensor arrays.
Each firms entered into an settlement with Justice Division officers to resolve allegations that they overcharged federal grants by billing for prices incurred by one other enterprise and by billing for compensation in quantities exceeding federal limits.
The settlement additionally resolves allegations that they backdated service and cost-sharing agreements and knowingly offered a backdated settlement to the U.S. authorities.
“Federal awards for biotech analysis are a vital side of this nation’s technique to advertise and help innovation and analysis,” mentioned U.S. Lawyer Stephanie M. Hinds. “Regrettably, some recipients mislead auditors and divert funds to complement themselves.”
The whole settlement quantity is $10,068,875, with iSense and Particular each paying $4 million and Dr. Rhodes paying the rest, Hinds mentioned.