Virginia Non-Profit and Federally Qualified Health Center Settles Case Involving Grant Fraud
On May 30, 2018, St. Charles Health Council, Inc. (St. Charles), Pennington Gap, Virginia, entered into a $115,000 settlement agreement with OIG. The settlement agreement resolves allegations that St. Charles knowingly presented to the Department of Health and Human Services (HHS) a specified claim under an HHS grant that St. Charles knew or should have known was false or fraudulent and knowingly and improperly avoided an obligation to transmit funds to HHS with respect to such grant. Specifically, OIG alleged that St. Charles drew down $500,000 from a Health Resources and Services Administration Capital Development Grant and used the funds for unallowable operating costs unrelated to the grant. OIG further alleged that St. Charles improperly failed to return such funds for over three months. Senior Counsels Michael Torrisi and David Traskey, assisted by Chief Investigator Jennifer Trussell, represented OIG.
- Date:May 30, 2018
- CMP and Affirmative Exclusions