New York Federally Qualified Health Center Settles Case Involving False Grant Claims and Misrepresentations

On July 14, 2020, Brooklyn Plaza Medical Center (BPMC), a federally qualified health center in Brooklyn, New York, entered into a $100,000 settlement agreement and a 5-year recipient compliance agreement with OIG. The settlement agreement resolves allegations that BPMC made false specified claims in the form of drawdowns from the HHS Payment Management System for Health Resources and Services Administration grant funds that were not supported by adequate documentation, timesheets, and a financial management and control system that ensured that HHS grant funds were used solely for authorized purposes in accordance with federal statutes, regulations, and the terms and conditions of BPMC’s federal awards. The OIG further alleged that on various occasions during the same timeframe, BPMC falsely represented to HHS in funding applications that it had in place: (1) safeguards to prohibit employees from using their positions for personal gain; and (2) a financial management and control system that ensured that HHS grant funds were used solely for authorized purposes in accordance with federal statutes, regulations, and the terms and conditions of BPMC’s federal awards. OIG's Office of Investigations and Office of Counsel to the Inspector General, represented by Senior Counsels Michael Torrisi and David Traskey, collaborated to achieve this settlement.

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