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A&M Research Foundation will pay $750,000 to settle claims made by US Attorney

The foundation is an independent nonprofit that facilitates research and development within the A&M System. It receives federal grants and contracts through various federal agencies.

The Texas A&M Research Foundation, part of the Texas A&M University System, will pay $750,000 to settle federal claims that it overinflated expenses and overcharged the federal government to cover salaries.

The U.S. Attorney’s Office in Houston said in a statement Thursday that the Texas A&M Research Foundation submitted improper charges from 2007 to 2016.

The foundation is an independent nonprofit that facilitates research and development within the A&M System. It receives federal grants and contracts through various federal agencies.

Officials began investigating the foundation after employees sued.

Whistleblowers said the foundation violated salary caps, wrongfully awarded longevity pay and committed other irregularities.

In a statement, the A&M System says that while the foundation denies violating any federal law, “there were a few instances where mistakes were made.”

Here's the complete statement from an A&M spokesperson:

After an investigation that lasted more than four years and involved the review of thousands of documents relating to contracts and grants involving more than $63 million, the federal government agreed to settle its claims against the Texas A&M Research Foundation for $750,000. While the Research Foundation denies any violation of the federal False Claims Act, there were a few instances where mistakes were made. The settlement is about 1% of the total value of the grants and contracts in question, and Foundation officials believe the actual error rate is much lower. In large part, the Research Foundation’s research compliance procedures worked but we appreciate the federal government’s thorough scrutiny which shows room for improvement. We will take steps to address the issues presented in this review.

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