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Pavion Company to Pay $1.75 Million to Resolve False Claims Act Allegations of Small Business Contracting Fraud

ALEXANDRIA, Va. –A company located in Chantilly has agreed to pay $1.75 million to settle civil fraud allegations that it and its subsidiaries improperly obtained government contracts that were set-aside for small businesses. 

The United States alleged that the Pavion Company (Pavion) ceased to qualify as a small business concern after its predecessor company was acquired in 2016 by the private equity firm Tower Arch Capital. The United States further alleged that, after its acquisition, Pavion, including two of its subsequently acquired subsidiaries, falsely certified themselves as qualified small businesses in the System for Award Management (SAM.gov). Following its acquisition by Tower Arch Capital, Pavion and its subsidiaries were awarded 117 set-aside small business contracts across twenty different federal agencies that they were ineligible to receive.  

Read more on www.justice.gov

Action Details

  • Date:December 7, 2023
  • Agency:U.S. Attorney's Office, Eastern District of Virginia
  • Enforcement Types:
    • Criminal and Civil Actions,
    • Grant and Contractor Fraud Self-Disclosures