A South Bay tech startup, eBibelot, and its CEO, Melody Fallah-Khair, will pay over $630,000 due to allegations of improperly obtaining federal grant funds. The startup submitted a grant application to the National Science Foundation, certifying that Fallah-Khair would serve as the principal investigator and maintain primary employment with eBibelot. However, prosecutors alleged that Fallah-Khair engaged in full-time work for a telecom company while failing to disclose this to the NSF, violating grant terms and the False Claims Act. U.S. Attorney Craig H. Missakian affirmed the need for integrity in federal grant programs.
Saratoga-based eBibelot and its CEO, Melody Fallah-Khair, will pay $630,000 to resolve allegations of improperly obtaining federal grant funds from the National Science Foundation.
Fallah-Khair was alleged to have worked full-time for a telecom company while failing to disclose this outside employment in post-award certifications to the NSF.
Prosecutors stated that the grant terms required principal investigators to dedicate primary employment to the awarded small business during the grant period.
U.S. Attorney Craig H. Missakian emphasized the importance of integrity in taxpayer-funded research and the commitment to using the False Claims Act against fraud.
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