Raleigh Professor Agrees to Pay $152,500 To Resolve Allegedly False National Science Grant Claims

RALEIGH, N.C. - Dr. Michael Harrington and his company Genoverde Bioscience, Inc., have agreed to pay $152,500 to the United States to resolve claims of allegedly false payments under National Science Foundation grants and Payment Protection Program ("PPP") loans.

"This civil fraud settlement demonstrates our commitment to protect taxpayer money and guard the integrity of our grant programs," said U.S. Attorney Ellis Boyle. "Our office will zealously pursue damages and civil penalties against grant recipients whether the amounts taken are large or small."

This settlement arose from allegations that Dr. Harrington's company, Genoverde, made false and duplicative expense claims under government grants, and also improperly sought PPP loans and PPP loan forgiveness. The Genoverde grants included expenses for research on harvesting industrial hemp and trees.

"Small Business Innovation Research (SBIR) awards are highly competitive grants intended to fund American-owned small businesses to conduct research that will lead to the commercialization of innovative new products and services," said Megan E. Wallace, NSF's Acting Inspector General. "The NSF Office of Inspector General is committed to ensuring the integrity of NSF's SBIR grant program by holding accountable those who choose to engage in false claims and misrepresentation schemes. We appreciate the efforts of the Department of Justice in pursuing this matter and will continue to vigorously pursue oversight of taxpayer funds devoted to scientific research."

The False Claims Act mandates that the Government recover three times the amount of money falsely obtained, plus substantial penalties for each false claim submitted. The civil claims here were resolved by settlement and are allegations only. No judicial determination or admission of liability occurred.

The United States Attorney's Office of the Eastern District of North Carolina partnered with the NSF Office of Inspector General; and Assistant United States Attorney Neal Fowler represented the United States.