In 2012, a former Pennsylvania State University professor pled guilty to research fraud after he was caught misusing funds from a scientific grant intended to measure gasses in the blood of sick infants. Craig Grimes had been awarded more than three million dollars for his scientific research. However, instead performing research, Grimes used the funds to supplement his salary. Patient testing was never completed.
The U.S. government provides schools, universities, colleges, museums, businesses, non-profits and other organizations grants for medical and scientific research, art, project development, community outreach, social service and a variety of other projects. Recipients of government funds agree to use the money awarded for purposes outlined in the grant application or agreement. Misuse of these funds is considered a form of fraud under the False Claims Act.
Examples of Government Grant and Loan Fraud
- Providing false information on grant or loan applications
- Exaggerating credentials in order to receive funding
- Use of grant funds for purposes not related to or outside the scope of the grant
- Use of grant funds for prohibited purposes
- Using grant funds for personal purposes
- Using grant funds to pay researchers or employees who have a conflict of interest with the terms of the grant
- Falsifying research data or results
- Knowingly failing to comply with the conditions of a grant
- Knowingly failing to comply with federal regulations
- Violation of environmental, equal opportunity, wage and hour, or health and safety standards required by the terms of the grant
- Violation of ethical standards or guidelines
Research fraud costs our government millions of dollars in taxpayer money. If you have information about grant fraud, research fraud, or the misuse of government funds, please call Petrelli Law at 800-432-9461 to schedule a free consultation. We represent Pennsylvania whistleblowers under the U.S. False Claims Act, State False Claims Act, Dodd-Frank Act, and Consumer Protection Act. We can help you file a whistleblower lawsuit, protect you from retaliation, and help you claim your whistleblower reward.