Public College and Former Professor Pay $575K to Settle Whistleblower Lawsuit over Misuse of Federal Grant Funding for Vacations, Bonuses, Outside Research

A postdoctoral research staff member discovered the fraud and filed a whistleblower lawsuit under the qui tam provisions of the False Claims Act. New York City public university Hunter College and the former director of its HIV studies center have agreed to pay a combined $575,000 to settle allegations they violated the False Claims Act by knowingly misusing National Institutes of Health (NIH) grant

The hiring of the subcontractors by Vescent Photonics allegedly violated conditions on the use of Small Business Innovation Research (SBIR) grant funding. Laser manufacturer and military contractor Vescent Photonics Inc. has agreed with the U.S. Department of Justice to pay $400,000 to resolve allegations it violated the False Claims Act by improperly employing foreign subcontractors on research projects funded by U.S. government grants.

Fourth Circuit reasons that proving the fraudulent state of mind required for False Claims Act liability would defeat any claim of qualified immunity State or local government officials alleged to have violated the False Claims Act by defrauding the federal government cannot raise “qualified immunity” as a defense, the Fourth Circuit Court of Appeals has held.  The state of mind