A settlement agreement has been reached between Enterprise Technology Solutions, Inc. (ETS) and the U.S. Attorney’s Office for the District of Columbia, resulting in ETS agreeing to pay $2.25 million. This settlement addresses allegations that ETS violated the False Claims Act by falsely claiming eligibility for two Small Business Administration (SBA) programs, thereby improperly securing government contracts that were intended for legitimate small businesses.
According to U.S. Attorney Jeanine Ferris Pirro, ETS, which provides IT solutions, misrepresented its operations to participate in the SBA’s Historically Underutilized Business Zone (HUBZone) program. This program is designed to give federal contracting advantages to small businesses located in economically disadvantaged areas. The allegations state that ETS falsely claimed its principal office was in College Park, Maryland, and that half of its employees resided locally, while in reality, the company’s main operations and a majority of its workforce were based in Pakistan.
Additionally, the U.S. Attorney’s Office alleges that ETS also made false claims to qualify for the SBA’s Women-Owned Small Business (WOSB) program. Despite assertions that Meena Sheikh was in control of the company, the U.S. government claims that Zahid Sheikh exercised significant control over ETS, effectively acting as its President and CEO. As a result of these misrepresentations, ETS allegedly received over 150 government contract awards that it was not entitled to under the small business programs.
The U.S. Attorney’s Office stated that this resolution was achieved through a coordinated effort involving multiple federal agencies, including the SBA and the General Services Administration Office of Inspector General. Adelle Harris, Special Agent in Charge of the Eastern Field Office at the NASA Office of Inspector General, emphasized the importance of maintaining the integrity of federal procurement processes, stating that companies that falsely claim small business status undermine opportunities for legitimate businesses.
The allegations also extend to violations of the Trade Agreements Act, with claims that ETS knowingly sold IT equipment to federal agencies that was not manufactured in the United States or designated trade-partner countries. The settlement highlights the continued vigilance of federal authorities in addressing fraud within government contracting.
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