Tidewater of Virginia-based businesses Karda Systems LLC, SEK Solutions, and MJL Enterprises LLC have settled with the Department of Justice over allegations of violations of the false claims act. The DoJ claims these companies, as well as ADS, Inc, misrepresented their status for set-aside business with the US government. Last Summer, ADS settled the same suit for $16 million.
Specifically, the claims are that SEK Solutions falsely claimed eligibility for set-asides for women-owned small businesses, MJL claimed it was service disabled veteran-owned firm and that both SEK Solutions and Karda misrepresented themselves as socially or economically disadvantaged businesses (8(a)).
This was a “qui tam” lawsuit that was filed under the whistle blower provision of the False Claims Act in which a private party, Ameliorate Partners, a Delaware limited liability partnership, sued on behalf of the government for a portion of the settlement. So far Ameliorate Partners is said to have received over $3 million.
In the settlement, MJL Enterprises Inc agreed to pay $400,000, SEK Solutions agreed to pay $140,000, and Karda Systems, LLC agreed to pay $80,000.
Considering the legal bills which are sure to have piled up since the suit was first filed in 2013, it’s not surprising the firms settled. With the settlement comes no admission of wrongdoing and brings the suit to a close.
