DOJ and California non-profit settle allegations of false claims for reimbursement

Seattle – The U.S. Department of Justice and Sun Valley CARE Development, Inc. (CARE) today resolved allegations that CARE violated the False Claims Act by submitting false information to the Economic Development Administration (EDA) in connection with an EDA grant. CARE will pay the government $364,126 to resolve the matter, announced Acting U.S. Attorney Tessa M. Gorman of the Western District of Washington.

CARE is a California 501(c)(3) non-profit charitable organization located in Sun Valley, California. In 2008 EDA awarded a grant to CARE in the amount of $2,800,000 for the design and construction of a medical and nurse training facility in Sun Valley. The grant was administered by EDA’s Seattle Office.

The settlement today resolves allegations arising from CARE’s final request for reimbursement submitted to EDA in connection with the grant. In January 2018 CARE submitted to EDA a request for reimbursement that purported to set forth the costs CARE incurred constructing the medical and nurse training facility. The United States contends that the request for reimbursement and supporting documentation contained false information about CARE’s construction costs.  Of the settlement amount, $182,063 is restitution.  The additional settlement dollars are part of the enhanced penalties under the False Claims Act.

“The Department of Commerce OIG is dedicated to working with Department of Justice to curb fraud, waste, and abuse. It is of particular importance when a project receiving EDA funding to design and construct a nurse training facility benefitting the local community is negatively impacted. We greatly appreciate the cooperation and effort of the United States Attorney’s Office in ensuring justice is served in this matter,” said Jeffrey Lysaght, Special Agent in Charge, U.S Department of Commerce, Office of Inspector General.

The investigation began with a whistleblower complaint regarding work performed under the grant.

This matter was investigated by the U.S. Department of Commerce Office of Inspector General. Assistant United States Attorney Ashley Burns handled the case for the U.S. Attorney’s Office.