The Justice Department and the Nuclear Regulatory Commission have reached a financial settlement of $132,000 with three entities that allegedly misrepresented their small business status in order to pay reduced nuclear material handling fees.
While denying the allegations, the three entities — Constructora Santiago II, Corp., Centro Cardiovascular and Hospital Del Maestro — collectively agreed to pay the settlement.
In order to possess and handle radioactive materials, an entity has to obtain a license from the Nuclear Regulatory Commission (NRC) and pay an annual fee. The NRC permits companies to pay a reduced fee if it qualifies as a small business.
In order to certify small business status, a business must average gross receipts of $7 million or less over its last three completed fiscal years. Each small business entity is required to complete a form certifying that it meets the criteria to qualify as a small business entity.
According to the settlement agreements, Constructora Santiago II, Corp., Centro Cardiovascular and Hospital Del Maestro falsely certified that each had gross receipts of less than $7 million when the government contends that in fact, all three companies had gross receipts that greatly exceeded $7 million. As a result of their false claims, each of the three entities paid reduced NRC license fees.
