In a significant legal development, the Cleveland Clinic Foundation (CCF) has agreed to pay $7.6 million to resolve allegations of violating the False Claims Act (FCA). The U.S. Attorney’s Office for the Northern District of Ohio announced this settlement on May 17, 2024, following claims that CCF failed to disclose foreign financial support in federal grant applications and progress reports submitted to the National Institutes of Health (NIH).
The allegations centered on CCF’s omission of critical financial support details related to a principal investigator administering three NIH grants. NIH mandates complete transparency in grant applications and progress reports, requiring applicants to disclose all sources of research support. Full transparency ensures the proper allocation of research time and prevents duplicate funding. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Additionally, the settlement addresses CCF’s violation of NIH’s password policies. Unauthorized access to NIH’s online grant reporting platform led to false submissions, exacerbating the transparency issues.
Rebecca C. Lutzko, U.S. Attorney for the Northern District of Ohio, emphasized the importance of honesty in the grant process, noting the competitive and limited nature of federal research funds. NIH has imposed Specific Award Conditions on all CCF grants for a year starting October 1, 2024. These conditions include mandatory high-level attestation of grant support information, development of corrective action plans, and enhanced internal controls and training programs.
This case underscores the government’s commitment to combating fraud and ensuring the integrity of federal grant processes. The investigation involved cooperation between the HHS Office of Inspector General, the FBI, and the U.S. Attorney’s Office.
For more information on reporting potential fraud, waste, or abuse in HHS programs, visit OIG’s Hotline. Visit the official press release for more information and to view the complete settlement agreement.
