The SBIR/STTR Policy Directive gives the following SBIR/STTR-related fraud, waste, and abuse examples, however, this is not an exhaustive list: 

• Misrepresentations or material, factual omissions to obtain, or otherwise receive funding under, an SBIR/STTR award. 

• Misrepresentations of expended funds’ use, work done, results achieved, or compliance with program requirements under an SBIR/STTR award. 

• Misuse or conversion of SBIR/STTR award funds, including any award funds’ use while not in full compliance with SBIR/STTR program requirements, or failure to pay taxes due on misused or converted SBIR/STTR award funds. 

• Fabrication, falsification, or plagiarism in applying for, carrying out, or reporting results from an SBIR/STTR award. 

• Failure to comply with applicable federal cost principles governing an award. 

• Extravagant, careless, or needless spending. 

• Self-dealing, such as making a sub-award to an entity in which the PI has a financial interest. 

• Agency personnel accept bribes or gifts in exchange for grant or contract awards or other conflicts of interest that prevent the U.S. Government from getting the best value. 

• Agency personnel’s lack of monitoring, or follow-up if questions arise, to ensure awardee meets all required eligibility requirements, provides all required certifications, performs in accordance with the award’s terms and conditions, and performs all work proposed in the application. 

Knowingly and willfully making any false, fictitious, or fraudulent statements or representations may be a felony under the Federal Criminal False Statement Act (18 U.S.C. Sec 1001), punishable by a fine of up to $10,000, up to five years in prison, or both.