FOR IMMEDIATE RELEASE
JUNE 11, 2009
WWW.USDOJ.GOV/USAO/MA
CONTACT: CHRISTINA DiIORIO-STERLING
PHONE: (617)748-3356
E-MAIL: USAMA.MEDIA@USDOJ.GOV
UMASS TO PAY $636,500 TO SETTLE ALLEGATIONS OF FALSE CLAIMS TO FEDERAL AGENCIES
Springfield, MA...University of Massachusetts agrees to pay settlement to resolve false claims allegations.
Acting United States Attorney Michael K. Loucks announced that the UNIVERSITY OF MASSACHUSETTS has agreed to pay $636,500 to settle allegations that false claims were made to the Department of Defense, the Department of Energy, the National Science Foundation and other federal agencies in connection with multiple federal research grants awarded to the University.
The settlement, made effective today, resolves allegations that between 1998 and 2006 the UNIVERSITY OF MASSACHUSETTS improperly charged salary, faculty stipends and vacation time to federal grants awarded to the university by more than a dozen federal agencies. Specifically, the Government alleged that the UNIVERSITY OF MASSACHUSETTS charged federal grants for faculty pay in excess of the faculty members' base salary and for faculty stipends. The Government contended that this practice violated federal regulations designed to ensure that faculty compensation billed to federal grants is commensurate with the faculty’s
granted-funded research work.
“Academic institutions that receive federal grants have a responsibility to administer the funding properly,” Acting U.S. Attorney Loucks stated. “This settlement should send a message to institutions that accept federal grant money, that they must strictly adhere to the terms and conditions agreed to at the time the grant is administered.”
Resident Agent in Charge Kathryn A. Feeney, Defense Criminal Investigative Service, New Haven, CT said, “This settlement reinforces the Department of Defense's commitment to the investigative oversight of federal awards to ensure transparency and accountability of all universities which receive federal funds.”
The case was investigated by the Defense Criminal Investigative Service and the Defense Contract Audit Agency. The case was handled by Assistant U.S. Attorney Karen L. Goodwin in Loucks’ Springfield Office.
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