Pleasanton Biotech Cyion to Pay $528,335.74 to Resolve Federal Grant Allegations
Cyion Technologies LLC, a biotechnology company based in Pleasanton, in Alameda County, California, has agreed to pay $528,335.74 to resolve federal allegations that it improperly obtained federal research grant funds. The U.S. Attorney's Office for the Northern District of California announced the settlement on November 13, saying the United States alleged that Cyion violated the False Claims Act by accepting and drawing down federal grant awards it was ineligible to receive.
The settlement covers two Small Business Technology Transfer (STTR) awards and one Small Business Innovation Research (SBIR) award that Cyion obtained from the National Institutes of Health (NIH). The terms of those programs bar companies whose principal investigators hold outside full-time employment from applying for or receiving the awards. The government alleged that when Cyion applied for the STTR grants in 2017 and the SBIR grant in 2023, and drew down funds through 2019 and 2024 respectively, it failed to disclose that its principal investigator held outside full-time employment, in violation of the awards' terms.
"NIH small business research grants are intended to fuel innovation, not reward companies that break the rules," said U.S. Attorney Craig H. Missakian. "The requirements governing these grants, including restrictions on outside full-time employment, are not optional. When companies misrepresent their eligibility to obtain federal funding, my office will vigorously enforce the False Claims Act to hold them accountable and protect taxpayer dollars."
Robb R. Breeden, Special Agent in Charge of the Pacific Regional Office of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), said Cyion's failure to disclose its principal investigator's outside full-time employment undermined the purpose of the federal small business research grant programs, which exist to support eligible innovators conducting critical scientific research, not to fund entities that misrepresent their eligibility.
Assistant U.S. Attorney Savith Iyengar handled the matter, which resulted from a coordinated effort by the U.S. Attorney's Office for the Northern District of California and HHS-OIG. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
(Source: U.S. Department of Justice)
Source: U.S. Department of Justice
Published by GSM · USA (original Chinese edition)
Photo: 图：位于华盛顿的美国司法部总部大楼。Gunnar Klack 摄，CC BY-SA 4.0，经 Wikimedia Commons，本图已裁为 16:9。 / Photo: Headquarters of the U.S. Department of Justice in Washington. By Gunnar Klack, CC BY-SA 4.0, via Wikimedia Commons; cropped to 16:9.
