Don't take this fraud for granted

The U.S. federal government disburses billions in grants annually to worthy recipients. These awards aim to make life better by promoting research and development, finding new disease treatments plus improving education, infrastructure, housing and much more. Of course, big money attracts fraudsters. Here we examine three main types of schemes and how fraud examiners can prevent and deter grant fraud. We also dissect the government’s latest anti-fraud guidance.

Vesta Brue said she wanted to develop electronic pillboxes customized for HIV and pediatric patients, among others. So, she began her companies, LifeTechniques Inc. and Care Team Solutions LLC, and applied for millions of dollars in federal grants from the National Institutes of Health (NIH). But she lied on applications to get those awards. And then she spent much of the cash on plastic surgery, jewelry, home renovations and massages. She also misused grant money for marketing and promoting her businesses — a blatant violation.