Ohio State University Agrees to $2.1M Settlement to Resolve Allegations that it Failed to Disclose Employees’ Ties to the People’s Republic of China in Applications for Federal[...]

Ohio State University (OSU), a public university in Columbus, Ohio, has agreed to pay a total of $2,100,000 to resolve civil allegations that it failed to disclose OSU employees' affiliations with and support from the People's Republic of China (PRC) in connection with federal research funding.

"American universities that benefit from the federal government's support for scientific research and advancement must fully disclose all foreign funding in their grant applications," said Assistant Attorney General Brett A. Shumate of the Justice Department's Civil Division. "We will continue to hold accountable any university that fails to comply with disclosure requirements designed to protect research security and federally-funded scientific achievements."

"Together with the Department of Justice and NASA, we have secured a major financial recovery on behalf of the American public," said Robert Steinau, Senior Official at the NASA Office of Inspector General. "The settlement and accompanying compliance agreement send a clear message: We will not tolerate institutions that conceal foreign ties and compromise national security. Our cutting-edge research must not fall into the hands of our adversaries."

"The National Science Foundation invests billions of taxpayer dollars each year in research that advances American innovation and national security, providing a substantial portion to support America's colleges and universities," said Acting Inspector General Megan E. Wallace of the National Science Foundation. "Federal agencies rely on grant recipients, including colleges and universities, to fully disclose their funding sources and personnel commitments, including foreign support. When recipients fail to make those disclosures, they undermine the integrity of the federal grant process and can put taxpayer dollars and U.S. research interests at risk. The NSF Office of Inspector General is committed to protecting the nation's investment in science and technology by detecting and preventing fraud and holding recipients accountable for meeting their obligations. We thank the Justice Department's Civil Division and our investigative partners for their work in protecting federally funded research."

This settlement relates to National Aeronautics and Space Administration (NASA) and National Science Foundation (NSF) grants that provided funding to OSU from November 2012 to August 2023. In the funding application process, NASA and NSF required OSU to disclose, among other things, foreign government support received by any principal investigator (PI) or co-PI on the grant application. Further, since 2011, federal law prohibits the use of grant funds for collaborations with the PRC, PRC Universities, or any PRC-owned companies. The settlement resolves allegations that OSU failed to disclose the collaboration and affiliation with, or funding received from, the PRC by certain OSU employees working on NASA and NSF grants. Specifically, the settlement resolves allegations that since 2014, annual Faculty Activity Reports submitted to OSU identified affiliations with PRC universities and state-run research organizations, but OSU did not disclose this information to NASA or NSF. In addition, OSU learned in 2019 that a PI on NASA grants was a participant in a Thousand Talents Program, a program established by the PRC to recruit individuals with knowledge or access to foreign technology intellectual property, but OSU did not notify NASA or NSF until four years later in 2023. The United States identified additional OSU employees who worked on those grants and were affiliated with, or collaborated with, or received funding from, the PRC.

This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration's war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division's FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division's FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department's Civil Division, Commercial Litigation Branch, Fraud Section, NASA OIG, NSF OIG, and the FBI.

The matter was handled by Fraud Section Senior Trial Counsel Christopher Reimer. Investigative support was provided by NASA OIG, NSF OIG, and the FBI.

The claims resolved by the settlement are allegations only and there has been no determination of liability.