A Boulder company and its owner have agreed to pay $625,000 to settle allegations that they violated the False Claims Act, according to a news release issued by the U.S. Attorney’s Office for the District of Colorado.
Instec Inc. and its owner and president, Zhong Zou, were accused of failing to comply with the requirements of the Buy American Act when selling scientific instruments to federal agencies and national laboratories.
The Buy American Act was enacted in 1933 to protect U.S. manufacturing by creating a preference for domestic products in federal purchasing.
The U.S. alleged that Instec and Zou knowingly violated the Buy American Act. Allegations included that Instec and Zou falsely certified that scientific instruments sold to the government pursuant to contracts containing domestic-preference requirements were of domestic origin, when the goods were actually manufactured in China.
The case involved microscopy, spectroscopy and electrical probing tools with advanced precision thermal controls that were sold to federal agencies and national laboratories, including the Department of Energy, the U.S. Navy, the U.S. Army, and the National Aeronautics and Space Administration.
Claims resolved by the settlement remain allegations only, with no determination of liability.
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