Ithaca Biotech Company Settles Federal Whistle-Blower Lawsuit
Wednesday, June 5, 2013
An Ithaca-based biotechnology company accused of filing fraudulent labor claims has settled a whistleblower lawsuit with the U.S. Department of Justice for $300,000.
The civil lawsuit alleged that Agave BioSystems of Ithaca and former president and cofounder Noe Salazar submitted false time cards to the Department of Defense, claiming his daughter had performed work on a government contract that she had not done. The lawsuit also alleged that other family members received inflated salary expenses.
Agave BioSystems specializes in developing miniaturized biosensors and analytical instruments with a wide variety of applications.
Agave has research contracts with a number of federal agencies, including the Department of Defense, the National Institutes of Health, the Environmental Protection Agency and NASA.
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