Advanced BioNutrition Corporation (“BioNutrition”), a Columbia biotech company, and its chief executive officer, David Kyle, paid the U.S. government $934,000 to resolve allegations that its officials submitted inaccurate grant progress reports to government research funds and thereby violated the False Claims Act. 

In 2005, BioNutrition was awarded the first phase of a National Science Foundation Small Business Innovation Research grant to develop probiotic bacteria encapsulating technology.  In 2006 the company was awarded the second phase of funding based on another proposal which detailed results obtained during its first phase of research.  Allegedly, BioNutrition misrepresented and omitted critical information about its initial research results, and made further misrepresentations in final reports about its progress during the second phase of work. 

In addition to the monetary component of the settlement, the company has agreed to a five-year Compliance Integrity Agreement, and Mr. Kyle agreed to be excluded from all federal procurement programs for five years.

The settlement resolves a qui tam lawsuit brought by whistleblower Albert Cunniff, Jr.  Mr. Cunniff will receive $105,275 out of the recovery.