US Recovers More Than $2 Million in Civil Fraud Case Involving Pakistan-Based Firm

The case was highlighted by the newly established Fraud and Asset Recovery Division within the US Attorney's Office for the District of Columbia, according to a report by Washington-area ABC affiliate WJLA.

US Attorney Jeanine Pirro said the case reflects the type of civil fraud involving federal funds that her office is seeking to pursue, while indicating that additional cases could follow.

According to authorities, Enterprise Technology Solutions (ETS) received two grants through a Small Business Administration programme designed to assist businesses operating in underserved communities.

The company allegedly told authorities that its headquarters were in College Park and that at least half of its employees lived in the surrounding area, representations that were relevant to its eligibility for the programme.

Federal officials, however, alleged that the company's main operations were actually based in Pakistan. On that basis, authorities determined that it did not qualify for funding intended to benefit US-based businesses and workers.

Pirro said the grants were financed by American taxpayers and were designed to promote economic activity in communities within the United States. Authorities alleged that the company's representations resulted in federal money being diverted from the programme's intended beneficiaries.

The matter was pursued as a civil fraud case rather than a criminal prosecution. As a result, no criminal charges or prison sentences were involved, with the company instead required to return more than $2 million to the federal government.

The US Attorney's Office has also renewed its call for whistleblowers to report suspected fraud involving federal funds. Under applicable whistleblower provisions, individuals whose information contributes to successful government recoveries may be entitled to a portion of the recovered amount.

In the ETS case, the whistleblower who provided information to authorities is set to receive more than $330,000 from the recovered funds, according to the report.