AiNET Corp. and its former CEO Deepak Jain have agreed to pay $1.8 million to resolve allegations of violating the False Claims Act by submitting false claims for data center services under a contract with the U.S. Securities and Exchange Commission (SEC). The settlement addresses claims that AiNET falsely certified its Beltsville, Maryland data center met Tier III standards and that an entity called UpTime Council inspected it to confirm Tier IV compliance. The SEC alleges UpTime Council was not an operational company and never inspected the facility. Assistant Attorney General Brett Shumate and SEC Inspector General Kevin Muhlendorf emphasized accountability for ensuring fair government contracting. The resolution involved collaboration between the DOJ’s Civil Division and SEC’s Office of the Inspector General. The settlement resolves allegations of fraudulent certification but does not constitute a determination of liability.
Source: U.S. Department of Justice (DOJ).
Materials reproduced from https://www.justice.gov/.
No endorsement by the DOJ is implied.
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