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.
Grant Fraud
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)