WASHINGTON — Enterprise Technology Solutions, Inc. agreed to pay $2,250,000 to settle allegations it violated the False Claims Act by falsely claiming qualification for two Small Business Administration programs. U.S. Attorney Jeanine Ferris Pirro announced the civil settlement agreement on October 1, 2026.

The settlement resolves allegations that Enterprise Technology Solutions, Inc., Zahid Sheikh, and Shamela Sheikh inappropriately obtained government contracts set aside for certain small businesses. The United States contends that the company received over 150 contract awards to which it was not entitled under the small business programs.

Enterprise Technology Solutions, Inc. claimed its principal office was in College Park, Maryland. The company also claimed half of its four employees lived locally in the College Park HUBZone. However, the United States alleges that the company’s principal office and a majority of its employees resided in Pakistan.

The government further alleges that the company made false statements to participate in the Small Business Administration’s Women Owned Small Business program. This program provides federal contracting preferences for businesses that are owned and controlled by one or more women. The SBA’s Women Owned Small Business (WOSB) program requires 51% ownership and control by women, but the government alleged Donny Sheikh exerted de facto control over the company.

The United States alleges that Donny Sheikh exercised both day-to-day and strategic control of Enterprise Technology Solutions, Inc. and effectively operated as its President and Chief Executive Officer. Shamela Sheikh was asserted to lead the company.

The Government alleges that Enterprise Technology Solutions, Inc. violated the Trade Agreements Act by knowingly selling IT equipment to federal agencies that were not made in the United States or in designated trade-partner countries. The Trade Agreements Act violation involved over 150 federal contracts awarded to the company.

"By lying about who they were and where they operated, this company siphoned money from programs designed to help small businesses in disadvantaged American communities and to support women‑owned small businesses," said Pirro. "They claimed benefits they were never entitled to, all while running their operations out of Pakistan." "My Office will continue to expose schemes like this, protect taxpayer-funded programs, and hold accountable anyone who tries to defraud the government through deception," she said.

The settlement resulted from a coordinated effort with the Small Business Administration, the General Services Administration Office of Inspector General, and the National Aeronautics and Space Administration Office of Inspector General. "Companies that falsely claim small business status to secure government contracts steal opportunities directly from hardworking Americans," said Adelle Harris, Special Agent in Charge of the Eastern Field Office at the NASA Office of Inspector General. "We will not tolerate contractors who breach public trust by obscuring who they are, where they operate, or where their products come from," Harris said.

Why It Matters

This case shows the enforcement of federal procurement rules designed to support specific groups of small businesses. By allegedly operating out of Pakistan while claiming U.S. locations and ownership, the company accessed funds intended for disadvantaged American communities and women-owned enterprises. The involvement of multiple inspector general offices demonstrates the interagency approach to detecting and punishing such fraud.

The settlement serves as a warning to contractors that misrepresenting their status or product origins can lead to financial penalties. The recovery of funds and the award to the whistleblower reflect the mechanisms in place to protect taxpayer money and ensure fair competition in federal contracting.

Timeline

On October 1, 2026, Harris added that they will not tolerate contractors who breach public trust by obscuring who they are, where they operate, or where their products come from. She further stated on October 1, 2026, that today's settlement highlights the importance of interagency collaboration to preserve the integrity of the federal procurement process. On the same date, Special Agent in Charge Elisa Pellegrini of the GSA Office of Inspector General Mid-Atlantic Investigations Division said "the GSA Office of Inspector General will aggressively pursue contractors that provide false information to win federal contracts." Pellegrini also stated on October 1, 2026, that they will continue to work with their federal partners to protect their supply chain and the integrity of the federal contracting process. "We will continue to work with our federal partners to protect our supply chain and the integrity of the federal contracting process," Elisa Pellegrini said.

What's New

Elisa Pellegrini, Special Agent in Charge of the GSA Office of Inspector General Mid-Atlantic Investigations Division, stated that the GSA Office of Inspector General will aggressively pursue contractors that provide false information to win federal contracts. The GSA Office of Inspector General’s Mid-Atlantic Investigations Division has pursued other cases involving false small business certifications between 2018 and 2025.

The whistleblower, Kyle Harris, received $337,500, which constitutes 15% of the $2.25 million settlement amount under the False Claims Act. The whistleblower, Kyle Harris, received $337,500 as his share of the settlement under the False Claims Act's qui tam provisions.