Misspending Grant Money Constitutes False Claims Act Violation
Taxpayer Funds For Research
Institute Pays $10 Million To Settle Allegations
Whenever the government issues grant money, the government expects the money to be used for a certain purpose, such as medical research. If the grant money is misspent the improper expenditures constitute violations of the False Claims Act (FCA), 31 U.S.C. §§ 3729 et seq. Individuals with information on the fraud can bring suits on behalf of the United States government to recover. The California whistleblower attorneys at Evans Law Firm, Inc. represent whistleblowers/relators in FCA cases of fraud against the government of any variety. If you have credible, original information for a false claims case or any other whistleblower case in California, call us today at (415)441-8669 and we can help.
In one recently settled FCA case, a former employee of a large research institute alleged that his employer had misspent government grant money on non-grant related activities such as developing, preparing, and writing new grant applications, teaching, and engaging in other administrative activities. The suit alleged that the institute improperly charged time spent by its faculty on developing, preparing, and writing new grant applications and improperly charged government-funded projects for time spent by its faculty on other activities unrelated to the funded projects, such as teaching, committee work, and other administrative tasks.
Restrictions on Grant Money
“Federal grant recipients must use the grant funds they receive on tasks that specifically relate to the funded project. Those that improperly charge the government for costs unrelated to the project must be held accountable,” said U.S. Attorney Robert K. Hur in making the settlement announcement. Special Agent in Charge Maureen R. Dixon, U.S. Department of Health and Human Services Office of Inspector General, added, “Taxpayers funds for medical research are finite and the need for scientific advances is great; therefore, it’s critical that these resources are used as intended. Working with our law enforcement partners, our investigators will continue to protect these resources so that they are spent appropriately.”
Ingrid M. Evans and the other whistleblower attorneys at Evans Law Firm, Inc. handle False Claims Act whistleblower cases and many others: bank fraud under FIRREA/FIAFEA, commodity trading and securities fraud under the Commodities Futures Trading Commission Whistleblower Program and the Securities and Exchange Commission Whistleblower Program, and tax fraud under the Internal Revenue Service Whistleblower Program. If you or a loved one has information regarding false claims, or other fraud against the federal government or the State of California, contact Ingrid M. Evans and the other California whistleblower attorneys at Evans Law Firm at (415) 441-8669, or by email at <a href=”mailto:firstname.lastname@example.org”>email@example.com</a>.
 Evans Law Firm, Inc. was not involved in the case in any way.