Late last month, it was announced that Duke University agreed to settle with the Department of Justice (DOJ) a case involving allegations that the University violated the False Claims Act by submitting applications and progress reports with falsified research on federal grants to the National Institutes of Health (NIH) and to the Environmental Protection Agency (EPA).
According to the allegations made by Joseph Thomas, a former Duke employee, Duke knowingly submitted and caused to be submitted claims to the NIH and the EPA that contained falsified or fabricated data or statements in thirty grants, causing the NIH and the EPA to pay out grant funds they otherwise would not have. The allegations by Thomas include claims that his former colleague and her supervisor received more than 60 research grants totaling $200 million in funding via falsified applications.
The United States specifically contends that the results of certain research related to mice conducted by a Duke research technician in the Airway Physiology Laboratory, as well as statements based on those research results, were falsified and/or fabricated.
While universities across the country occasionally find themselves in hot water with the False Claims Act, typically, the allegations that involve universities come out of improper billing to the federal government for salaries or other administrative costs. The False Claims Act allegations and settlement in this case is rare in that it did not involve the standard administrative costs, but instead involved tampering with scientific data.
John R. Thomas, Jr., the attorney for – and brother of – the whistleblower, recognizes the importance of this case, noting, “This case was, simply put, one of the largest scientific fraud cases in history. The impact on the published scientific record, federal grant funding, and on individual researchers was unprecedented.”
Duke’s Response
The technician behind these falsified reports, Erin Potts-Kant, has also been accused of embezzling funds by the University and her employment has been terminated. The allegations of embezzlement occurred during the same time frame as the falsification of data for federal grants. The qui tam case was filed by Thomas after Potts-Kant’s embezzlement actions were discovered by the University, but prior to Duke understanding the full extent of her research misconduct. Duke has also retracted roughly one dozen scientific publications that relief on data from Potts-Kant’s research.
The President of Duke University, Vincent E. Price, has sworn to improve the school’s grant processes, including establishing a panel on research integrity. He also noted that he expects researchers affiliated with the University to adhere to the highest standards of integrity, and said, “Virtually all of them do that with great dedication…. When individuals fail to uphold those standards, and those who are aware of possible wrongdoing fail to report it, as happened in this case, we must accept responsibility, acknowledge that our processes for identifying and preventing misconduct did not work, and take steps to improve.”
Government Reaction and Statements
“Taxpayers expect and deserve that federal grant dollars will be used efficiently and honestly. Individuals and institutions that receive research funding from the federal government must be scrupulous in conducting research for the common good and rigorous in rooting out fraud,” said Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina. “May this serve as a lesson that the use of false or fabricated data in grant applications or reports is completely unacceptable.”
“This settlement sends a strong message that fraud and dishonesty will not be tolerated in the research funding process,” said EPA Acting Region 4 Administrator Mary S. Walker. “We will continue to take appropriate legal measures to ensure a fiscally sound system that protects grant funds.”