- District of Columbia AG Brian Schwalb has settled with Intralot, Inc. and Veterans Services Corporation (VSC) to resolve an investigation into allegations that the companies deceived city officials in violation of the District’s False Claims Act and its Small, Local, and Disadvantaged Business Enterprise Act (DBE).
- The AG alleges that the companies were awarded a lottery and sports betting contract as a result of their claim that VSC, a certified small business subcontractor under the SBE, would perform 51% of the work on the contract and receive proportionate compensation. Instead, Intralot and VSC allegedly entered into an undisclosed agreement to have the work completed by an Intralot subsidiary and funnel compensation to Intralot.
- Under the terms of the settlement agreements, the companies will pay a combined $6.5 million and must accurately report contract and subcontract information in any future bids, contracts, or subcontracting plans with the District; further, Intralot is prohibited from using any entity to provide resources to a District small business subcontractor, and VSC may not use undisclosed resources provided to it by any other entity.