oversight

Grant Fraud

Published by the National Science Foundation, Office of Inspector General on 2014-10-20.

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: 1-11080039                                                                     Page 1 of1



         We conducted an investigation of a Connecticut for-profit company 1 and concluded that the
         company filed false financial reports and cash requests with NSF and that the PI2 misused NSF
         award funds, by among other things: (1) making bonus payments to a family member, (2) renting
         property from himself, without disclosing the self-dealing to NSF, (3) paying a consultant for a
         personal conversation, and (4) retaining over $19,000 of unexpended grant funds in his account
         when he closed out the award. Throughout the period of the misconduct, the PI also had sole
         control of the affiliated non-profit organization's 3 bank account, and was transferring money
         between the organizations at will, implicating NSF award funds. During the pendency of the
         investigation, the affiliated non-profit organization took multiple steps to sever the PI's control
         over its finances and instituted policies and procedures to protect federal funds in the future.

         The U.S. Attorney's Office entered into civil settlements under the False Claims Act, one with
         the for-profit company and the PI, and the second with the non-profit company. Both
         settlements require a mandatory five-year compliance plan to begin on the date that either
         company submits an NSF proposal. In addition, the for-profit company and the PI returned
         $145,531 to the government, and agreed to a one-year voluntary exclusion from receiving federal
         funds.

          This case is closed.




         2




NSF OIG Form 2 (11102)