Northwestern to Pay $3M to Settle Grant Fraud Claims; Whistleblower to Get $498K

Posted: 08/23/2013  browse the blog archive

Northwestern University has agreed to pay the United States government $2.93 million to resolve allegations of cancer research grant fraud committed by a former researcher and physician at the university’s Robert H. Lurie Comprehensive Center for Cancer in Chicago, the U.S. Department of Justice announced last month

Northwestern allegedly allowed one of its researchers, Dr. Charles L. Bennett, to submit false claims under research grants from the National Institutes of Health. Dr. Bennett allegedly submitted improper claims for reimbursement for professional and consulting services, subcontracts, food, hotels, travel and other expenses that benefited Dr. Bennett, his friends, and family, including family trips, meals and hotels for himself and friends, and “consulting fees” for unqualified friends and family members, including his brother and cousin. At Dr. Bennett’s request, Northwestern also allegedly improperly subcontracted with various universities for services that were paid for by the NIH grants.

The lawsuit was originally filed by Melissa Theis, a former employee at Northwestern’s Feinberg School of Medicine, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private citizens with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Theis will receive $498,100 as her share of the settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.