The Department of Justice announced today that Instec Inc. (Instec), located in Boulder, Colorado, and Dr. Zhong Zou, Instec’s owner and president, have agreed to pay $625,000 to resolve allegations that the company and Zou violated the False Claims Act by failing to comply with the requirements of the Buy American Act (BAA) when selling scientific instruments to federal agencies and national laboratories.
The BAA was enacted in 1933 to protect U.S. manufacturing by creating a preference for domestic products when the federal government purchases supplies. The United States alleged that Instec and Zou knowingly violated the BAA by falsely certifying that goods sold to the government pursuant to contracts containing domestic-preference requirements were of domestic origin, when these good were actually manufactured in China.
“Those who contract with the government must comply with all applicable terms,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates the department’s commitment to protect American businesses by enforcing domestic preference requirements.”
“When companies commit to manufacture their goods in the United States, then shirk that commitment, they violate the law and undermine American manufacturing jobs, too,” said U.S. Attorney Cole Finegan for the District of Colorado. “The U.S. Attorney’s Office for the District of Colorado is committed to enforcing the Buy...
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https://www.justice.gov/opa/pr/colorado-company-and-owner-agree-pay-625000-al...