Golden-based laser company settles out of court with federal prosecutors
Vescent Photonics, Inc., agreed to pay more than $400,000 to resolve allegations by the U.S. Department of Justice that it misused federal grant money meant for American small businesses.
In a press release last week, the Department of Justice (DOJ) accused the Golden-based laser technology company of subcontracting "two foreign nationals, located in foreign countries, to perform research and development" on projects which Vescent have been provided federal funds.
Vescent was awarded two Small Business Innovation Research (SBIR) grants, one from the National Aeronautics and Space Administration (NASA), and one from the United States Air Force, according to the DOJ.
"(SBIR) awards are made by various government agencies to eligible small businesses for them to use domestically, in conducting research and developing technology with potential commercial benefits," per the DOJ's release.
The amount of those grants and the dates they were awarded to Vescent were not provided. Nor were the identities of the two subcontractors allegedly hired by Vescent.
"This settlement represents the combined efforts of partnering agencies to defend programs designed to assist domestic small businesses to ensure they are able to thrive and compete," stated James P. Stoddard, Special Agent in Charge of the U.S. Air Force, Office of Special Investigations (OSI), in the DOJ press release. "We are fully committed to ensuring integrity within Air Force-funded acquisition programs."
Vescent Photonics claims, on its website, to be a leading developer and manufacturer of precision laser and electro-optic technologies.
Vescent co-founder and CEO Scott Davis provided a statement in response to the settlement:
"In their press release, the DOJ acknowledges 'The claims resolved by this settlement are allegations only.' Vescent denies all allegations of wrongdoing. Despite this, a settlement was significantly less expensive than full litigation. As a small company, we chose the less expensive, more expedient route to returning focus to our mission: US-based development and manufacturing of important laser technologies to enable scientific and field-deployed quantum applications."
