Saratoga tech startup, CEO to pay 630K to resolve accusations of violating grant terms

eBibelot, a tech startup from Saratoga, and its CEO, Melody Fallah-Khair, will pay $630,000 to the U. S. Department of Justice to settle claims of violating the terms of a federal grant from the National Science Foundation. The grant explicitly required that Fallah-Khair limit outside work to approximately 20 hours per week, yet she allegedly held a full-time position at a telecommunications firm from May 2019 to April 2021. The civil complaint, filed in U.

S. District Court for the Northern District of California, detailed multiple instances of false post-award certifications submitted by Fallah-Khair. The U. S. Attorney’s Office clarified that the settlement does not require an admission of liability from either party.

This case highlights the critical importance of compliance with federal grant regulations for startups seeking funding. Local businesses may face heightened scrutiny in the wake of this settlement as federal oversight increases. A LinkedIn message seeking comment from Fallah-Khair was not returned, leaving questions about her future plans. The resolution emphasizes the need for transparency and accountability in the use of public funds.