Five California information technology companies agreed on July 6 to pay $5.8 million to resolve allegations that they falsely claimed one of their enterprises was a small business to get set aside contracts.

The companies; En Pointe Gov. Inc., En Pointe Technologies Inc., En Pointe Technologies Sales Inc., Dominguez East Holdings LLC and Din Global Corp.; were accused of certifying En Pointe Gov. Inc., as a small business from 2008 to 2015 by underreporting sales figures so the company could obtain contracts from the General Services Administration that were reserved for small businesses.

As a result, Department of Justice officials said that En Pointe Gov. Inc. violated the terms of the GSA contract and underpaid fees owed to the agency.

Prosecutors also alleged that En Pointe Gov. Inc. presented false representations to the Small Business Administration by not disclosing its ties to the other four companies, which, they said, would have disqualified it from small business status.

"Contractors who misrepresent their eligibility for government contracts, or fail to pay amounts owed under those contracts, undermine the integrity of the procurement process," said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department's Civil Division.  "The Justice Department will take action to fully protect taxpayer funds."

The allegations, which prosecutors said violated the False Claims Act, emerged from a whistleblower lawsuit filed by a Virginia-based IT company called Minburn Technology Group, LLC. As a result of the settlements, Minburn will receive $1.4 million.

En Pointe Gov. Inc., En Pointe Technologies Sales Inc. and En Pointe Technologies Inc. have since been rebranded as Modern Gov IT Inc., Collab9 Inc. and Dinco Inc.

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