NATIONAL SCIENCE FOUNDATION Page 1 of 2 4201 WILSON BOULEVARD ARLINGTON, VIRGINIA 22230 OFFICE OF INSPECTOR GENERAL 1 fl MEMORANDUM I To: File I98120036 m:9 Background verification of a NSF Phase I grant for $500,000 that was awarded t g On December 7, 1998, NSF-BFAIDGA met with a FBI Special Agent re arding the actual amount of the award was $50,000. I contacted the FBI to obtain additions The information. A Special Agent with the FBI informed me that the FBI had received a request for assistance in verifying documents from of China in Hong Kong. The FBI Agent related that embezzling approximately $1.25 million dollars ~ o n ~ . s a eforged d grant letter from NSF showing an award of $500,000 in order to show evidence of his financial status when starting up the new company. As a result of the evidence that ad falsified a NFS grant letter, I conducted an investigation to determine i misused NSE finds andlor provided false information to NSF to During the investigation I discovered information showing that his company, had poss!ibly obtained duplicate funding from NSF and NASA r is research project. I contact;! NASA-OIG to"assist in the investigation. The investigation revealed that had pro;ided falsified proposals to both NSF and NASA by submitting documents forged signatures for the Chief Financial Officer for his company, and certifying that his company had not submitted similar proposals to other federal agencies. nd companies, received funding from both NSF and NASA for the same researc project during the same time period (1 993). his rl After being unable to locate assets f o m m p a n i e s , and verifying with the FBI that currently being held by the Chinese government, 1 contacted the U.S. Attorney's Ice f6r the Southern District of Iowa to have the case assigned to an AUSA, or to have the case declined for prosecution. The U.S. Attorney's Office declined to prosecute the case on the grounds that F s currently in custody in China and is unlikely to return to the United States. NASA-OIG plans to initiate debarment proceedings against the event that he does return torthe U.S. and attempts to obtain federal funding. Conclusions ,, . . - "1.- ...... ....c. .- ...... , .......... . . . . . . . . . . . . . . . . . . -- . . . . .................... ~ a s e on ._ . d thd AUSA's determination not to prosecute, the case is closed with no further . . . .. I.... action. ,. z .$ .**
Published by the National Science Foundation, Office of Inspector General on 1999-03-02.
Below is a raw (and likely hideous) rendition of the original report. (PDF)