Grant & Research Fraud

What is grant and research fraud?

A company engages in grant or research fraud when, in connection with either an initial or renewal application for Government research funding, the company lies to the entity providing the funds, for example, by falsifying or failing to disclose significant facts pertaining to eligibility, or by falsifying data or other significant information.

Qui tam actions may be brought against companies who knowingly violate the terms of their government grants. Federal and state agencies award billions of taxpayer dollars to companies and organizations to promote what is deemed by these agencies to be a “public purpose.” Government funded grant programs include research and development projects performed in a variety of settings in the United States and throughout the world, by academic institutions and other public and private entities. Grantees must use Government funds in accordance with the terms of the grant and the granting agency’s guidelines. When grantees knowingly violate the terms of the grant or the governing agency’s guidelines, they may run afoul of the False Claims Act.

Some common types of grant fraud that can violate the False Claims Act are:

  • Lying on a grant application concerning a material matter
  • Knowingly using grant funds for unauthorized purposes
  • Falsifying material documentation relating to the use of grant funds
  • Falsifying research data and results, and progress reports
  • Knowingly violating conflict of interest standards
  • Knowingly violating applicable government health and safety regulations when compliance is a material condition of the grant

VSG’s Qui Tam Lawyers Are Experienced in Handling Federal Grant Fraud Cases

While serving in the Department of Justice, Ms. Slade obtained a settlement of almost $27 million to settle a False Claims Act lawsuit charging the defendants with improperly billing the federal government to collect grant funds disbursed for the training of social service workers.