1 "i NATIONAL SCIENCE FOUNDATION OFFICE OF INSPECTOR GENERAL OFFICE OF INVESTIGATIONS CLOSEOUT MEMORANDUM TO: AIGI File Number: I95040014 Date: 17 March 2002 Subject: Closeout Memo Page 1 of 1 There was no closeout written at the time this case was closed. The following information was extracted from the file in conformance with standard closeout documents. Our office was informed that the subject' was alleged to have received duplicate travel reimbursements while employed at his institution2. The subject repaid $4,930.00 to his institution, and his institution returned the funds to the NSF grants. The subject also paid $20,000 in a civil settlement and agreed to limited debarment. Accordingly this case is closed. - Name: Signature & date: Prepared by: Agent: Attorney: Cleared by: Supervisor: AIGI - NATIONAL SCIENCE FOUNDATION 4201 WILSON BOULEVARD ARLINGTON, VIRGINIA 22230 3 1 October 1995 OFFICE OF INSPECTOR GENERAL To: ' Division of Contracts, Policy, and Oversight - Division of Grants and Agreements General C O U ~ S ~ ~ From: Acting Inspector General Subject: - 1 has been Principal Investigator on many National Science Foundation awards, most r e c e n t l m We investigated certain allegations i n v o l v i n m and referred the matter to the United States Attorn Eastern District of Virginia. A settlement has been reached between Department of Justice. -paid & Office for the and the a civil penalty of $20,000.00 under the civil False Claims Act. Certain conditions, specified in the agreement, are to be observed in administering any current and future federal government awards in whic- is involved. A copy of the agreement, with a cover letter from the Assistant United States Attorney, is attached. Assuming that- complies with the terms of the settlement agreement, this office deems the matter closed, and we recommend that the National Science Foundation not consider the alleged impropriety in connection with any future proposals or awards, Please call our Counsel, Dr. Montgomery K. Fisher, at 306-2100, if you have any questions. Attachment O C T 2 7 '95 15:30 F R O M US R T T O R N E Y S O F F I C E P A G E . 002 US. Department of Justice United Statps Attorney &tern Dirmmctof Viugrnaa October 2 7 , 1995 RE: ! -# Dear Enclosed is your fully executed copy of the Release and Settlement Agreement in this matter. The Whited S t a t e s . Department of Justice acknowledges full refmbvsement of t h e disputed funds and considers the matter closed. By copy of this letter to the National Science Foundation, I am advising that this matter should not affect any future grant proposals or avards as long as the protocol set forth in the Settlement Agreement is folloued. Sincerely, HELEN F. FAHEY UNITED STATES ATTORNEY B r i a n D . giller Assistant U n i t e d States Attorney ( 7 0 3 ) 706-3809 cc: National Science Foundation .bcT 27 ' 9 5 15:30 F R O M US Q T T O R N E Y S OFFICE u - T h i s Release and Settlement Agreement ("Agreementu) is made and entered i n t o this as- i=l day of October, 1995, by and between the UNITeD STATES O F - ~ R I C A("United S t a t e s n) , through the U n i t e d , States Attorney for the Eastern District of V i r g i n i a , W1'1P1688ET8: OQBPTttGAS, after r e v i e w of extensive materials provided by the National Science Foundation, t h e Waited States believes that it has ) travel reimbursement for trips paid from a National Science Poundatfon gramt; and )QBEREAS, Science amounting to after a review of materials provided by the National Poundatfon the United (including $2,718.40 an audit prepared S t a t e s believes t h a t i t allegedly by - is in e v e q a n e ' s b e s t interests to settle t h i s matter on the basis of four ( 4 ) trips in inappropriate ttavel reimbursement claims; and WBEREAB, - ) denies that any inaccurate or erroneous claims were made or w e r e knowingly false or made in deliberate ignorance or reckless disregard of the t r u t h or falsity of such claims for travel reimbursement, and asserts that any inaccurate or erroneous claims were in no way intentional, knowing or otherwise designed to defraud the National Science Foundation; and fJgEREAS, in order to avoid further c i v i l litigation, and. OCT,S7 '95 15:30 F R O M US A T T O R N E Y S O F F I C E P A G E . 004 because the United States believes that it is in the public interest to settle any such disputes with regard to its claims, the United States and l ' ' have agreed t o settle a l l such claims and differences, and mattera relating thereto, by virtue of this Agreement; and -_- WHEREAS, the united States Justice Department is fully ompowered and authorized t o settle this matter for i t s e l f , the National Science ~oundatidn,and the United S t a t e s , including a l l agencies thereof; - HOW, TEEREFORE, in considenation of t h e mutual cooenants . expressed herein, the parties do hereby agree as follws: 1.1 Pavmont to the Uaited S t a t e s a U p o n the date of execution of t h i s settlement agreement by the U n i t e d States, agrees that he will pay to the United States t h e eum of $20,000.00. 1.2 Wanner and nethod of Pamuexat's The payment provided for - in subparagraph 1.1 shall be made upon execution of this settlement agreement by both parties, by certified check, payable to the U. S. Department of Justice, 'deliveredto: The united States Attorney's Office 1101 King street, S u i t e 5 0 2 Alexandria, V i r g i n i a 22314 Attn: Brian D. Miller, E s q . Assistant United States Attorney submit proper claims for travel in the future, and will exercise reasonable care to provide proper checks and balances so t h a t such ~ C 27 T '95 15:31 F R O M US A T T O R N E Y S O F F I C E PRGE ,005 future b i l l i n g s camply with all applicable regulations, including the f o l l w i n g : TEE P W I E Q COHDITIOES APP&Y TO AWARDS FROM AdfP lbG&?CY OF TEE FEDERAL w.WBERE APPROVALS BRE REQUIRBD BY B-CIES OR AWAROEE. IHSTITUTIQNS, TBE RISTERCE OP l!EESE COBDITI ORS IlWLIES H-INQ RSGARDXMG #BET- OR HOT SUCH APPROPALS S E W BE GRANTED- 1- The C e p t e r 1, Subject to agency award (including grant, Center under subaward front an awardee institution- 2. U n t i l July I, 1 9 9 7 , before the Center enters into any subaward arrangement with an awardee (or subawardee) institution, s h a l l obtain a the PI (if that ie not authorized organizational the avazdee (or aubavardee) i n s t i t u t i o n to review and a rove a l l expenditures of federal fvnda by ao the C e n t e r ; shall forward a copy of this written agreement to the Office of Inspector General 03 the National Science ~oundacion be£ore the Center enters into the subaward arrangement. 3- U n t i l July 1, 1997, subject to federal rules concerning expenditures under federal awards, all expenditures -yb or the Center, under subaward to the Center fram an awardee (or subawardee) institution, under any federal award shall be reviewed and approved by the PI (if that is not ) or the authorized o r g a n i z a t i o n a l w a t i v e on the a w a r d through the awardee (or subawardee) institution. Be Awards: Before and after July 1, 1996,-may receive salary and expend funds under - - O C T 27 '95 1 5 : 3 1 FROM US ATTORNEYS O F F I C E P Q G E . 006 subawards under t h e conditions set out i n "Au above, or after July 1, 1996, but not before, he may, subject t o usual agency proposal and review procedures, apply for and receive federal awards directly to the Center, with the Center as avardee and as P I , ' if the Center meets usual aorements for an avardee institution and, u n t i l July 1, 1997, prwided that a11 expenditures s h a l l be reviewed and accounted for by a Certified Public Accountant hired by the Center. The costs associated with the review of expenditures by the Certified Public Accountant s h a l l not be charged directly or indfxectlp to the federal gwemmant- C. Audits: Effective h e d i a t e l y , and for so long as t h e Center, or any successor or campasable corporation i n vhich is a principal uwner, receives feder21 funds dkectly or indirectly, an independent Certified Public Accountant not associated w i t h the Center s h a l l conduct an audit of t h e coxpoxate books (including a ptoject cost audit by individual award or agreement), i n accordance w i t h generally accepted accounting principles and federal audit requirements, a t the end of each fiscal yeas i n which t h e Centez reeeived any federal funds, with the results being provided to the avardee General of the National science ~oundation The c o s t of the audit s h a l l not be charged - f n e t i t u t i o n ( s ) and the Office of Inspector directly or indirectly to the federal government. No audit is required in any,,year in which the Center receives federal funds - only via subavards and the total received is less than $20,000.00. P r i n c i ~ a lor Co-Principal Investicrator: 1. Subject to usual agency approval procedures, ---may, if approved by the agency at the awardee institution's request : a. become a PI or Co-PI on any existing award to an fnstitution ,bCT 27 ' 9 5 15:32 F R O M US R T T O R N E Y S O F F I C E I other than t h e Center, and b. apply, as P I or Co-PI for an i n s t i t u t i o n other than the Center, fox new funding. 2. Until July 1, 1997, becomes P I or Co-PI on for an i n s t i t u t i o n other Ehaa the ~ e i t &and other than the academic i n s t i t u t i o n that employs him (which is covered by ' 8 " below), he shall obtain a written agr-nt by the P I ( i f that i s not ) or authorized organizational rep- a t t h e awardee institution t o review and approve all expenditures of federal funds by s h a l l forward a -eernent to t h e Office of Inspector General of the National Science Foundation before he becomes P I or Co-PZ on any a w a r d or proposal. 1 Until July 1, 1997, becomes emplayed by (orbefom3 acts consultant. advisor, or subavardee for) an i n s t i t u t i o n other than the Center, he s h a l l eLther : a. notify the Office of Inspector General of t h e National Science Foundation, in writing, before he becomes employed by the i n s t i t u t i o n , t h a t he w i l l neither apply for nor receive, d i r e c t l y o r i n d i r e c t l y , federal funds through the ' -- i n s t i t u t i o n until a f t e r July 1, 1997 or b. obtain a written agreement by the authorized organizational representative or chief financial officer at the institution to review and approve a l l expenditures of forward a copy of t h i r w r i t t e n agreement t o the Office of Inspector General of t h e National Science Foundation before he becomes employed by the academic institution. , ~ C T 27 '95 15: 32 FROM U S QTTORNEYS OFF I C E 2. U n t i l July 1, 1997, if. is employed by (or personally ap -ad i consultant, advisor, or subawardee for) an - i n s t i t u t i o n other than the Center, a l l expenditures of federal funds by 0 shall be submitted for review and approval by the authorized organizational representative or chief financial o f f i c e r at t h e institution- 3- Subject to usual agency approval - procedures, any federal awards in vhich- has a financial iavolvement, or portions - thereof, may, -- at the awardee institution's request, be transferred to an institution employing- . 4. Subject to usual agency approval procedures, w may, if appraved by - . t h e agency t e awardee institution's resuest, continue as or become PI or Co-PI on any existing awards; m Y apply, as PI or Co-PI for an --employing 0, for new funding a t any tima. C, Travel: 1. ~ n t L l~ a n u a r y1, 2000, any travel by- paid in whole or in part, directly or m d ~ r e c t l y ,with funda fzam a federal a w a r d or awards (or aubaward (s) ) shall be undertaken exclusively for the purpose of directly furthering the objectives of the project(8) funded by the fedesal - award(s) (or aubawaxd(a)). After January 1, 2000, the usual rules and procedures w i l l be followed for payment for 0 ' s travel w i t h funds from federal awarda. . %leg, 2. An honoraria or other payments received or any travel (or speech, 'or other activity associated with the t r a v e l ) the expenses of which are paid in whole or in nart, directly or ~ n d f r e c t l y , with funda (or subaward) for which PI, or among the remitted pkomptly - to the awardee (or subavardee) institution and added to t h e funds committed to the project by the f e d e r a l award (or subavard) and used to further project objectives.
Published by the National Science Foundation, Office of Inspector General on 1995-10-31.
Below is a raw (and likely hideous) rendition of the original report. (PDF)