Vimaan Robotics, Inc., a company based in San Jose specializing in computer vision and AI solutions for warehouse management, has agreed to pay $1.5 million. This payment resolves allegations that the company violated the False Claims Act by improperly accepting funds from a federal grant it was not eligible to receive.
The issue revolves around a Small Business Innovation Research (SBIR) Phase II grant obtained from the National Science Foundation (NSF). According to the terms of the SBIR grant, companies majority-owned by venture capital firms are not eligible for such awards. The United States alleged that Vimaan failed to disclose its change in ownership status before receiving the award on April 16, 2020. Between June 2020 and August 2022, Vimaan reportedly submitted multiple requests for disbursement of funds while falsely certifying its eligibility.
Acting United States Attorney Patrick D. Robbins stated, “Federal small business research grants awarded by NSF are designed to support and foster innovative research by small businesses, not to provide taxpayer funding for businesses primarily owned by venture capital firms.” He emphasized that his office would enforce the False Claims Act against companies that evade program restrictions.
Megan E. Wallace, NSF’s Acting Inspector General, remarked on the importance of maintaining integrity within the SBIR program: “Entities that misrepresent their eligibility in order to obtain government funding undermine the integrity and effectiveness of the program.”
Assistant U.S. Attorney Savith Iyengar managed this case for the government with collaboration between the U.S. Attorney’s Office for the Northern District of California and NSF's Office of Inspector General (OIG).
The resolution highlights ongoing efforts by authorities to combat fraud in federal grants using tools like the False Claims Act. Allegations resolved through this settlement have not been legally determined as liability.