VIRGINIA BEACH, Va. (AP) - A Virginia defense contractor and its subsidiaries have agreed to pay the United States $16 million to settle allegations they fraudulently obtained small business contracts.

The Department of Justice announced the settlement with Virginia Beach-based ADS Inc. on Thursday.

The department says the settlement resolves allegations that ADS fraudulently obtained small business contracts by having businesses it controlled misrepresent themselves as eligible for the contracts. The statement says some businesses falsely claimed to be owned by disabled veterans while others claimed to be in a category for socially or economically disadvantaged businesses. The government says ADS and the companies it controlled concealed their affiliation. The government says the settlement also resolves allegations ADS engaged in illegal bid rigging schemes.

The company didn't immediately respond to a request for comment Friday.