Settlement Agreement — United States, Dynamic Integrated Solutions, Inc. and Relator Quesenberry

Summary

A Settlement Agreement among the United States, Dynamic Integrated Solutions, Inc., and relator Bryan Quesenberry. It recites that Quesenberry filed a qui tam action on September 7, 2020 in the Northern District of California, No. 20-cv-6451, alleging that Dynamic unlawfully applied for and received two Paycheck Protection Program loans. The Covered Conduct section says the United States contends that two April 2020 applications led to promissory notes for $920,898 and $985,000. Under the terms, Dynamic pays $50,000 (the Settlement Amount) no later than 14 days after the date of the Agreement, with a default provision and a three-business-day cure period. A form of consent judgment for default is attached.

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Captured: 2026-09-25
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“Settlement Agreement — United States, Dynamic Integrated Solutions, Inc. and Relator Quesenberry.” Original at www.justice.gov. Archived at Pandemic Darlings on 2026-09-25, https://pandemicdarlings.com/source-documents/dl-60eb66c73d576f69-c334bc9132/, SHA-256 cc6c14a6926eb17e31aba9ffd9bfece0e2b0f4077d07f6aa88676adec5781d53.

Full text

SETTLEMENT AGREEMENT

This Settlement Agreement (“Agreement”) is entered into among the United States of

America, acting through the United States Department of Justice and on behalf of the

United States Small Business Administration (collectively, the “United States”), Dynamic

Integrated Solutions, Inc. (“Dynamic”), and Bryan Quesenberry (“Quesenberry” or “Relator”)

(collectively referred to as “the Parties”) through their authorized representatives.

RECITALS

A. Dynamic is a corporation organized under the laws of California and located at

3964 Rivermark Plaza, Suite 104, Santa Clara, CA 95054. Dynamic manufactures and

assembles components related to medical analytical instrument technology.

B. On September 7, 2020, Bryan Quesenberry filed a qui tam action in the United

States District Court for the Northern District of California captioned U.S. ex rel. Quesenberry v.

Bay Wire, Inc., et al., No. 20-cv-6451, pursuant to the qui tam provisions of the False Claims

Act, 31 U.S.C. § 3730(b) (the “Civil Action”). Relator alleges that Dynamic unlawfully applied

for and received two loans under the Paycheck Protection Program (“PPP”) prior to December

31, 2020 and falsely certified, in the submitted applications for the PPP loans, that it would

receive only one PPP loan prior to December 31, 2020.

C. The PPP was established pursuant to the Coronavirus Aid, Relief, and Economic

Security (“CARES”) Act. The CARES Act, which was enacted in March 2020, was designed to

provide emergency financial assistance to millions of Americans suffering economic effects

caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the

authorization of forgivable loans to small businesses for employee payroll and certain other

expenses, through the PPP. To obtain a PPP loan, a qualifying business was required to submit a

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PPP loan application, which is signed by an authorized representative of the business. The loan

application requires the business—through its authorized representative—to acknowledge the

program rules and make certain affirmative certifications regarding its eligibility to obtain the

PPP loan. PPP loan applications were processed by participating lenders, which received

processing fees from SBA. Following the approvals of loan applications, the participating

lenders funded the loan, which were 100% guaranteed by the SBA.

D. The United States contends that it has certain civil claims against Dynamic

for engaging in the following conduct, hereinafter referred to as the “Covered Conduct”:

The United States contends that, in April 2020, Dynamic submitted an application
for a PPP loan to “Lender 1.” In that application, Dynamic falsely certified that
“[d]uring the period beginning on February 15, 2020 and ending on December 31,
2020, the Applicant has not and will not receive another loan under the [PPP].”
Subsequently, Dynamic entered into a promissory note by which Lender 1 agreed
to lend $920,898 to Dynamic pursuant to the PPP (the “Lender 1 PPP Loan”), and
Dynamic received the Lender 1 PPP Loan proceeds by electronic transfer.

The United States further contends that, in April 2020, Dynamic submitted an
application for a PPP loan to “Lender 2.” In that application, Dynamic falsely
stated that “[d]uring the period beginning on February 15, 2020 and ending on
December 31, 2020, the Applicant has not and will not receive another loan under
the [PPP].” Subsequently, Dynamic entered into a promissory note by which
Lender 2 agreed to lend $985,000 to Dynamic pursuant to the PPP (the “Lender 2
PPP Loan”), and Dynamic received the Lender 2 PPP Loan funds by electronic
transfer.

The United States contends that, after receiving both the Lender 1 PPP Loan
funds and the Lender 2 PPP Loan funds, Dynamic knowingly and improperly
retained the funds obtained from both loans, contrary to the express certifications
that Dynamic made that Dynamic would not receive more than one PPP loan prior
to December 31, 2020. The United States further contends that, despite knowing
that it should not have received more than one PPP loan prior to December 31,
2020, Dynamic applied for forgiveness for both the Lender 1 PPP Loan and the
Lender 2 PPP Loan. Subsequently, Dynamic received forgiveness for the Lender
1 PPP Loan, but not the Lender 2 PPP Loan. After being served with a Civil
Investigative Demand from the United States Department of Justice, Dynamic
repaid the Lender 2 PPP Loan to Lender 2.

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E. The United States contends that it has certain civil claims against Dynamic for

violation the False Claims Act, 31 U.S.C. § 3729-3733 (“FCA”), and under the Financial

Institutions Reform, Recovery and Enforcement Act of 1989, 12 U.S.C. § 1833a (“FIRREA”).

F. Relator claims entitlement to a share of the proceeds of this Settlement Agreement

under 31 U.S.C. § 3730(d).

To avoid the delay, uncertainty, inconvenience, and expense of protracted litigation of the

above claims, and in consideration of the mutual promises and obligations of this Settlement

Agreement, the Parties agree and covenant as follows:

TERMS AND CONDITIONS

1. Dynamic shall pay to the United States $50,000 (“Settlement Amount”) by

electronic funds transfer pursuant to written instructions to be provided by the United States

Attorney’s Office for the Northern District of California no later than 14 days after the date of

this Agreement.

2. In the event that Dynamic fails to complete the payment set forth in Paragraph 1

by the date upon which it is due, Dynamic shall be in Default of its payment obligations

(“Default”). Upon Default, the United States will provide Dynamic, through its legal counsel or

other representative previously designated by Dynamic, by electronic mail a written Notice of

Default, and Dynamic shall have an opportunity to cure such Default within three business days

from the date the Notice of Default is sent by counsel for the United States. If Dynamic fails to

cure the Default within three business days from the date the Notice of Default is sent by the

United States, the difference between the amount paid by Dynamic under Paragraph 1 and

$50,000 shall become immediately due and payable, and interest on such amount shall accrue at

the rate of 10 percent per annum, compounded daily from the date of Default.

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3. Upon execution of this Settlement Agreement, Dynamic shall enter into a

Consent Judgment with the United States in the form attached as Attachment A. The

United States shall not file the Consent Judgment unless Dynamic is in uncured Default as

defined above. Dynamic agrees not to contest any Consent Judgment and/or collection action

undertaken by the United States pursuant to this Paragraph, either administratively or in any state

or federal court, except on the grounds of actual payment to the United States. At its sole option,

in the event of uncured Default as defined above, the United States alternatively may rescind this

Agreement as to Dynamic and bring any civil and/or administrative claim, action, or proceeding

against Dynamic for the claims that would otherwise be covered by the releases provided herein.

If the United States opts to rescind this Agreement in the event of uncured Default as defined

above, Dynamic agrees not to plead, argue, or otherwise raise any defenses of statute of

limitations, laches, estoppel or similar theories, to any civil or administrative claims that are (a)

filed by the United States against Dynamic, within 180 days of written notification to Dynamic

that this Agreement has been rescinded, and (b) relate to the Covered Conduct, except to the

extent these defenses were available on the particular date when the Civil Action referenced in

Recital Paragraph B was filed.

4. Conditioned upon the United States receiving the payment set forth in

Paragraph 1, the United States shall pay to Relator $3,761.40 by electronic funds transfer

(“Relator’s Share”). No other relator share payments shall be made under this Agreement.

5. Subject to the exceptions in Paragraph 7 (concerning reserved claims) below, and

upon the United States’ receipt of the Settlement Amount, the United States releases Dynamic

from any civil or administrative monetary claim the United States has for the Covered Conduct

under the False Claims Act, 31 U.S.C. §§ 3729-3733; the Program Fraud Civil Remedies Act,

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31 U.S.C. §§ 3801-3812; FIRREA, 12 U.S.C. § 1833a; or the common law theories of payment

by mistake, unjust enrichment, and fraud.

6. Subject to the exceptions in Paragraph 7 below, and upon the United States’

receipt of the Settlement Amount, Relator, for himself and for his heirs, successors, attorneys,

agents, and assigns, releases Dynamic from any civil monetary claim the Relator has on behalf of

the United States for the Covered Conduct under the False Claims Act, 31 U.S.C. §§ 3729–3733.

7. Notwithstanding the releases given in Paragraph 5 of this Agreement, or any other

term of this Agreement, the following claims and rights of the United States are specifically

reserved and are not released:

a. Any liability arising under Title 26, U.S. Code (Internal Revenue Code);

b. Any criminal liability;

c. Except as explicitly stated in this Agreement, any administrative liability

or enforcement right, including the suspension and debarment rights of

any federal agency;

d. Any liability to the United States (or its agencies) for any conduct other

than the Covered Conduct;

e. Any liability based upon obligations created by this Agreement; and

f. Any liability of individuals.

8. Relator and his heirs, successors, attorneys, agents, and assigns shall not object to

this Agreement but agree and confirm that this Agreement is fair, adequate, and reasonable under

all the circumstances, pursuant to 31 U.S.C. § 3730(c)(2)(B). Conditioned upon Relator’s receipt

of the Relator’s Share, Relator and his heirs, successors, attorneys, agents, and assigns fully and

finally release, waive, and forever discharge the United States, its agencies, officers, agents,

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employees, and servants, from any claims arising from the filing of the Civil Action or under

31 U.S.C. § 3730, and from any claims to a share of the proceeds of this Agreement and/or the

Civil Action.

9. Relator, for himself, and for his heirs, successors, attorneys, agents, and assigns,

releases Dynamic, and its officers, agents, and employees, from any liability to Relator arising

from the filing of the Civil Action, or under 31 U.S.C. § 3730(d) for expenses or attorneys’ fees

and costs.

10. Dynamic waives and shall not assert any defenses Dynamic may have to any

criminal prosecution or administrative action relating to the Covered Conduct that may be based

in whole or in part on a contention that, under the Double Jeopardy Clause in the Fifth

Amendment of the Constitution, or under the Excessive Fines Clause in the Eighth Amendment

of the Constitution, this Agreement bars a remedy sought in such criminal prosecution or

administrative action.

11. Dynamic fully and finally releases the United States, its agencies, officers, agents,

employees, and servants, from any claims (including attorneys’ fees, costs, and expenses of

every kind and however denominated) that Dynamic has asserted, could have asserted, or may

assert in the future against the United States, its agencies, officers, agents, employees, and

servants, related to the Covered Conduct or the United States’ investigation or prosecution

thereof.

12. Dynamic fully and finally releases the Relator from any claims (including

attorneys’ fees, costs, and expenses of every kind and however denominated) that Dynamic has

asserted, could have asserted, or may assert in the future against the Relator, related to the

Covered Conduct and the Relator’s investigation and prosecution thereof.

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13. a. Unallowable Costs Defined: All costs (as defined in the Federal

Acquisition Regulation, 48 C.F.R. § 31.205-47) incurred by or on behalf of Dynamic, and

Dynamic’s present or former officers, directors, employees, shareholders, and agents in

connection with:

(1) the matters covered by this Agreement;

(2) the United States’ audit(s) and civil investigation(s) of the matters

covered by this Agreement;

(3) Dynamic’s investigation, defense, and corrective actions

undertaken in response to the United States’ audit(s) and civil

investigation(s) in connection with the matters covered by this

Agreement (including attorneys’ fees);

(4) the negotiation and performance of this Agreement; and

(5) the payment Dynamic makes to the United States pursuant to this

Agreement and any payments that Dynamic may make to Relator,

including costs and attorney’s fees,

are unallowable costs for government contracting purposes (hereinafter referred to as

“Unallowable Costs”).

b. Future Treatment of Unallowable Costs: Unallowable Costs will be

separately determined and accounted for by Dynamic, and Dynamic shall not charge such

Unallowable Costs directly or indirectly to any contract with the United States.

c. Treatment of Unallowable Costs Previously Submitted for Payment:

Within 90 days of the Effective Date of this Agreement, Dynamic shall identify and repay by

adjustment to future claims for payment or otherwise any Unallowable Costs included in

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payments previously sought by Dynamic or any of its subsidiaries or affiliates from the United

States. Dynamic agrees that the United States, at a minimum, shall be entitled to recoup from

Dynamic any overpayment plus applicable interest and penalties as a result of the inclusion of

such Unallowable Costs on previously submitted requests for payment. The United States,

including the Department of Justice and/or the affected agencies, reserves its rights to audit,

examine, or re-examine Dynamic’ books and records and to disagree with any calculations

submitted by Dynamic or any of its subsidiaries or affiliates regarding any Unallowable Costs

included in payments previously sought by Dynamic, or the effect of any such Unallowable

Costs on the amount of such payments.

14. This Agreement is intended to be for the benefit of the Parties only.

15. Upon receipt of the payment described in Paragraph 1, above, Relator and the

United States shall promptly sign and file in the Civil Action a Joint Stipulation of Dismissal of

all claims against Dynamic in the Civil Action pursuant to Rule 41(a)(1)(A). Such dismissal shall

be: (a) with prejudice to the Relator as to all claims against all named defendants in the Civil

Action; (b) with prejudice to the United States as to the Covered Conduct; and (c) without

prejudice to the United States as to all other claims or allegations in the Civil Action.

16. Each Party shall bear its own legal and other costs incurred in connection with

this matter, including the preparation and performance of this Agreement.

17. Each Party and signatory to this Agreement represents that it freely and

voluntarily enters into this Agreement without any degree of duress or compulsion.

18. This Agreement is governed by the laws of the United States. The exclusive

jurisdiction and venue for any dispute relating to this Agreement is the United States District

Court for the Northern District of California. For purposes of construing this Agreement, this

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Agreement shall be deemed to have been drafted by all Parties to this Agreement and shall not,

therefore, be construed against any Party for that reason in any subsequent dispute.

19. This Agreement constitutes the complete agreement between the Parties. This

Agreement may not be amended except by written consent of the Parties.

20. The undersigned counsel represent and warrant that they are fully authorized to

execute this Agreement on behalf of the persons and entities indicated below.

21. This Agreement may be executed in counterparts, each of which constitutes an

original and all of which constitute one and the same Agreement.

22. This Agreement is binding on Dynamic’s successors, transferees, heirs, and

assigns.

23. This Agreement is binding on Relator’s successors, transferees, heirs, and assigns.

24. All parties consent to the United States’ disclosure of this Agreement, and

information about this Agreement, to the public.

25. This Agreement is effective on the date of signature of the last signatory to the

Agreement (Effective Date of this Agreement). Facsimiles of signatures shall constitute

acceptable, binding signatures for purposes of this Agreement.

[SIGNATURE PAGES FOLLOW]

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THE UNITED STATES OF AMERICA

Dated: the 21 day of December, 2022 By: ______________________________
Jared Wiesner
Trial Attorney
Commercial Litigation Branch
Civil Division
United States Department of Justice

Dated: the 21 day of December, 2022 By: ______________________________
Michael T. Pyle
Assistant United States Attorney
United States Attorney’s Office for the
Northern District of California

Attorneys for United States of America

DYNAMIC INTEGRATED SOLUTIONS, INC.

Dated: the day of December, 2022 By: ______________________________
David Diep
President, Dynamic Integrated Solutions, Inc.

Dated: the day of December, 2022 By: ______________________________
Cara Sandberg, Esq.
Counsel for Dynamic Integrated Solutions, Inc.

Dated: the ___ day of December, 2022 By: ______________________________
Miranda Kane, Esq.
Counsel for Dynamic Integrated Solutions, Inc.

RELATOR – BRYAN QUESENBERRY

Dated: the 20 day of December, 2022 By: ______________________________
Bryan Quesenberry, Esq.
Relator

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Attachment
A

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IN THE UNITED STATES DISTRICT COURT FOR THE
NORTHERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA )
ex rel. BRYAN QUESENBERRY )
)
Plaintiff/Relator, )
) No.: 20-cv-6451
v. )
)
DYNAMIC INTEGRATED )
SOLUTIONS, INC., )
)
Defendant. )

CONSENT JUDGMENT

Plaintiff United States of America (the “United States”) and Defendant Dynamic

Integrated Solutions, Inc. (collectively referred as the “Parties”), hereby stipulate, agree and

consent to the entry of this judgment based upon the following uncontested allegations:

1. This Court has jurisdiction over this case under 28 U.S.C. §§ 1331, 1345, 1367(a).

Dynamic Integrated Solutions, Inc., consents to the jurisdiction of the United States District

Court for the Northern District of California for the resolution of this dispute.

2. On the 21
___ day of December, 2022, Defendant Dynamic Integrated Solutions,

Inc., entered into a Settlement Agreement with Plaintiff United States for the purpose of

resolving a dispute (the “Settlement Agreement”). A copy of the Settlement Agreement is

attached hereto as Exhibit 1 and incorporated by reference herein.

3. Under the terms of the Settlement Agreement, Dynamic Integrated Solutions, Inc.,

agreed to pay to the United States the sum of $50,000 (“Settlement Amount”).

4. Also under the terms of the Settlement Agreement, Dynamic Integrated Solutions,

Inc., agreed that in the event it defaulted and failed to pay the Settlement Amount, within three
(3) business days of the date the Notice of Default is sent by counsel for the United States, the

United States may file a Consent Judgment against Dynamic Integrated Solutions, Inc., in the

amount of the unpaid balance of the Settlement Amount.

5. Dynamic Integrated Solutions, Inc., has now failed to make payment in

accordance with the Settlement Agreement, and therefore is in default under the terms of the

Settlement Agreement.

6. Unless it has already done so, within a reasonable time after the filing of this

Consent Judgment, the United States will file a statement of debt showing the amount due and

owing under the Settlement Agreement as of the date of default.

7. The United States has given Dynamic Integrated Solutions, Inc., written notice of

default under the terms of the Settlement Agreement, and demanded that Dynamic Integrated

Solutions, Inc., cure that default by tendering payment in full on the cure amount under the terms

of the Settlement Agreement. The United States has given Dynamic Integrated Solutions, Inc.,

three (3) business days to cure the default, as provided in the Settlement Agreement, but

Dynamic Integrated Solutions, Inc., failed to respond or to make arrangements to comply with

the terms of the Settlement Agreement.

ACCORDINGLY, THIS COURT enters judgment for the United States against

Defendant Dynamic Integrated Solutions, Inc., in the amount of $_____________________, plus

interest at the post-judgment interest at the rate of 10% per annum, compounded daily from the

date this Consent Judgment is entered until it is satisfied. This Court retains jurisdiction over this

action.

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DONE AND ORDERED in the Northern District of California this ___ day of

___________, 202_.

__________________________________
UNITED STATES DISTRICT JUDGE

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Consent to File

Cara Sandberg, Esq. and Miranda Kane, Esq., counsel for defendant Dynamic Integrated

Solutions, Inc., have consented to the undersigned Assistant United States Attorney’s electronic

filing of this Consent Judgement.

The parties hereby stipulate and agree to the entry of this Consent Judgment.

Dated: the 21 day of December, 2022 By: ______________________________
Michael T. Pyle
Assistant United States Attorney
United States Attorney’s Office for the
Northern District of California

Attorneys for United States of America

Dated: the 20 day of December, 2022 By: ______________________________
Cara Sandberg, Esq.
Counsel for Dynamic Integrated Solutions, Inc.

Dated: the ___
20 day of December, 2022 By: ______________________________
Miranda Kane, Esq.
Counsel for Dynamic Integrated Solutions, Inc.

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