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July 8, 2008

Saint Louis U. to Pay $1-Million to Settle Overbilling Allegations

Saint Louis University has agreed to pay $1-million to settle allegations that its School of Public Health engaged in a scheme to defraud the U.S. government by overstating the time faculty members were spending on federal grants, federal officials announced today.

In exchange, the government will drop a lawsuit, but the Missouri institution will face increased scrutiny of its compliance with requirements for participating in research supported with federal grants, according to a news release from the office of the U.S. attorney in Atlanta.

The university, in a statement quoted by the St. Louis Post-Dispatch, denied that it had cheated the government and said it had agreed to the settlement to avoid legal costs.

The lawsuit was filed under the False Claims Act by a former dean of the school, E. Andrew Balas. Dr. Balas will receive $190,000 as his share of the recovery in the case, the federal prosecutor’s statement said. —Charles Huckabee

Posted on Tuesday July 8, 2008 | Permalink |

Comments

  1. This sort of fraud is far too common. Columbia is guilty. The FBI moved on to Yale’s campus a few years ago to make its investigation easier.

    This case is the tip of the iceberg.

    — Columbia Administrator    Jul 9, 09:38 AM    #

  2. Absolutely the tip of the iceberg. Such shenanigans, usually imposed upon faculty by administrators, are widespread and only a rare “qui tam” suit, here or there, reveals the truth of the matter. In general, any dissent from within the institution is quashed with threats of retaliation. It is not surprising to learn that the filer of the suit was a former dean in this case.

    — Anti-hypocrisy advocate    Jul 9, 02:41 PM    #