Grant Fraud: Reporting Misuse of Federal Research Funding
Grant fraud occurs when an institution obtains or retains federal grant money through false statements, charges unallowable costs, or certifies compliance with grant regulations it has not met. Because grant applications and progress reports are claims for federal money, the False Claims Act applies.
Whistleblower suit against Harvard University over NIH grant administration
How grant fraud happens
Federal research funding runs on certifications. The recipient certifies how money will be used, that effort reporting is accurate, and that institutional controls are in place. Each certification is a point where a false statement creates liability.
- Charging costs to a grant that the award does not allow
- Effort reporting that does not reflect the time researchers actually spent
- Moving costs between awards to spend down balances before they lapse
- Progress reports overstating results to secure continued funding
- Failing to disclose foreign support or conflicting commitments
- Institutional controls certified as operating that are not
- Data manipulation in work that supports continued funding
A case we are litigating
Our attorneys represent Dr. David Searles Zielinski, former executive director of Harvard Catalyst and associate dean for clinical and translational research at Harvard Medical School, in a False Claims Act suit against Harvard University and Dr. Lee Nadler.
The complaint, unsealed in November 2025 in the District of Massachusetts, alleges that Harvard and Dr. Nadler submitted fraudulent grant applications and failed to comply with federal grant regulations and internal controls in administering NIH-funded research. The total grants at issue are 275 million dollars.
Dr. Zielinski spent eight years at the NIH before Harvard. The case is pending, and these are allegations that have not been resolved by any court.
Who reports grant fraud
Grant fraud is visible to the administrative layer rather than the bench. Research administrators, grants and contracts officers, departmental finance staff, compliance officers, and principal investigators who declined to sign something are the people who see it.
These relators tend to face a specific difficulty. Academic communities are small and reputational risk is real, which makes the confidentiality of the seal period especially important.
Frequently asked questions
Is a grant application a claim under the False Claims Act?
Yes. Courts treat grant applications, progress reports, and drawdown requests as claims for federal money. False statements in any of them can create liability.
Does this cover research misconduct like falsified data?
It can, where the falsified work supported an application or report used to obtain or keep funding. Research misconduct alone is handled by the Office of Research Integrity, but when federal funding turns on it the False Claims Act applies.
What if the institution has an internal compliance process?
Internal processes do not displace the statute, and evidence that concerns were raised internally and ignored often strengthens a case. Speak to counsel before you rely on an internal channel.
Are universities really sued over this?
Yes. Several major universities have resolved False Claims Act matters involving federal grants and cybersecurity compliance. Our own pending case is against Harvard.
The attorneys who handle these cases
Related reading
Talk to a whistleblower attorney before you report
A conversation costs nothing and is confidential. We will tell you honestly whether what you have describes a case, and what the first-to-file rule means for your timing.