Date: April 4, 2025
Law360, the Fredericksburg Free Lance Star, and other publications reported on a recent settlement resolving allegations that tech company Intelligent Waves, LLC., knowingly sold unauthorized equipment to the Air Force, charged for services or products that weren’t delivered, and lied in order to gain a contract in the first place. Two former employees of Intelligent Waves blew the whistle on the potential fraud. Both were represented by TELG's Lydia Pappas and Janel Quinn.
Va. Contractor To Pay $2M To Settle False Claims Suit
The U.S. Department of Justice said it reached a nearly $2 million settlement with a Virginia-based contractor, resolving claims it knowingly sold equipment to the Air Force that was not authorized under the contract and invoiced for undelivered products.
The DOJ said in a Thursday press release that Intelligent Waves LLC agreed to pay $1.95 million to settle False Claims Act allegations involving two Air Force contracts. The deal arises in connection with a lawsuit filed by two former Intelligent Waves employees under the FCA’s whistleblower provision in December 2022.
According to the DOJ, Intelligent Waves entered into the first contract with the Air Force in September 2019. Under the $89.2 million contract, Intelligent Waves provided crowdsourced flight data collection support and data analytics to the 59th Test and Evaluation Squadron at Nellis Air Force Base in southern Nevada.
[OFFICIAL ANNOUNCEMENT]
Government contractor to pay $1.95M to settle False Claims Act allegations
From the U.S. Attorney’s Office, Eastern District of Virginia (April 3, 2025)
ALEXANDRIA, Va. — Intelligent Waves, LLC, located in Reston, and its owner agreed to pay $1.95 million to settle False Claims Act allegations involving two Air Force contracts.
In September 2019, Intelligent Waves entered into a contract, known as the Crowd-Sourced Contract, with the Air Force. Under the Crowd-Sourced Contract, Intelligent Waves provided crowd-sourced flight data collection support and data analytics to the 59th Test and Evaluation Squadron at Nellis Air Force Base. The United States alleged that Intelligent Waves knowingly sold certain equipment to the Air Force that was not authorized under the Crowd-Sourced Contract and submitted invoices to the Air Force that portrayed the unauthorized equipment as authorized equipment under the Contract. The United States also alleged that Intelligent Waves knowingly invoiced the Air Force for products and/or labor that it did not deliver in the specific quantities stated in its invoices. After it failed to deliver the products and/or labor stated in its invoices, Intelligent Waves failed to provide a credit to the Air Force for undelivered products and/or labor, providing substitute products requested by non-procurement personnel instead.
In November 2020, Intelligent Waves also entered into a contract, known as the Special Access Program Facilities (SAPF) Contract, with the Air Force to build special access program facilities at Edwards Air Force Base,. The United States alleged that Intelligent Waves knowingly made false statements that induced the award of the SAPF Contract.
» View press release on Justice.gov
[ADDITIONAL COVERAGE]
Two area women to receive payment for being whistleblowers in federal fraud case
From The Fredericksburg Free Lance Star (April 8, 2025)
Two Fredericksburg area residents will receive cash payments for their roles as whistleblowers in a case in which a Reston-based technology professional services provider was accused of ripping off the Unites States government.
[…]
Nora Taylor of Spotsylvania and Marthe Lattinville-Pace of Strafford were both fired from Intelligent Waves. They said they raised concerns about unauthorized IT equipment that was different from what the company was contracted to provide.
Represented by The Employment Law Group in Washington, the women filed a whistleblower lawsuit in federal court near the end of 2022 that was kept under seal until last week.
» View full story on The Fredericksburg Free Lance Star
Reston veteran-owned contractor Intelligent Waves settles DOJ allegations
From Washington Business Journal (April 7, 2025)
Intelligent Waves LLC, a veteran-owned Reston IT contractor, has agreed to pay $1.95 million to settle a whistleblower lawsuit filed under the False Claims Act involving two U.S. Air Force contracts. The company did not admit wrongdoing.
» View full story on Washington Business Journal
2 Whistleblowers To Get Share Of $1.95M False Claims Act Settlement
From Patch (April 3, 2025)
RESTON, VA — A Reston-based defense contractor agreed to pay $1.95 million in order to settle False Claims Act allegations involving two Air Force contracts, according to a U.S. Attorney’s Office release.
Two former Intelligent Waves employees filed a false claims lawsuit against the company under the whistleblower provision of the False Claims Act. As such, the two whistleblowers will receive a percentage of the $1.95 million settlement.
[…]
The U.S. Attorney accused Intelligent Waves of knowingly making false statements that induced the awarding of the SAPF contract and provided meals and entertainment to Air Force employees before the award of and during the period of performance of the crowd-sourced and SAPF contracts, court records say.
[…]
On top of that, Intelligent Waves also knowingly submitted invoices to the Air Force for products and/or labor that the company failed to deliver, court records say. The contractor failed to provide credit to the Air Force for the undelivered products and/or labor. Instead, the company provided substitute products requested by non-procurement personnel.
Intelligent Waves Reaches $2M Settlement in False Claims Act Case
From USA Herald (April 4, 2025)
The U.S. Department of Justice (DOJ) has announced a nearly $2 million settlement with Virginia-based contractor Intelligent Waves LLC, resolving claims that the company knowingly sold unauthorized equipment to the Air Force and billed for undelivered products. The agreement, totaling $1.95 million, settles allegations brought under the False Claims Act (FCA) in connection with two separate Air Force contracts.
The case originated from a lawsuit filed in December 2022 by two former Intelligent Waves employees under the FCA’s whistleblower provision. Their claims prompted a federal investigation that unearthed alleged contractual violations spanning two major Air Force contracts.
