Grant Fraud

Published by the National Science Foundation, Office of Inspector General on 2014-10-01.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                                                NATIONAL SCIENCE FOUNDATION
                                                 OFFICE OF INSPECTOR GENERAL
                                                   OFFICE OF INVESTIGATIONS

                                           CLOSEOUT MEMORANDUM

 Case Number: 1-11060028                                                                 Page 1 of 1

         NSF OIG participated in a multiagency investigation of a company 1 to determine whether
         allegations that the company was not performing work on its multiple federal awards were
         substantiated. During the course of the investigation, we determined that while the initial
         allegations were not "substantiated with respect to certain Federal grants and contracts, the
         company had significantly underspent multiple Phase I SBIR awards, retaining excess profit well
         above the 7% permitted by the SBIR program and approved in the associated budgets.

         After the matter was declined by the Department of Justice, we recommended that NSF recover
         underspent Phase I award funds for the two NSF SBIR Phase I awards implicated. 2 NSF
         concurred with our recommendation, and the company returned a total of $152,911 of
         underspent Phase I awards to NSF.

         This case is closed.

         2   NSF Award Numbers

NSF OIG Form 2 (11/02)