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UNITED STATES SETTLES FALSE CLAIMS ACT CASE AGAINST

WASHINGTON, D.C. - South Carolina State University (SCSU) has agreed to pay the United States $140,000 to settle a False Claims Act lawsuit, U.S. ex rel. Jeffrey T. Hass v. South Carolina State University, filed in the District of South Carolina, the Justice Department announced today. The suit alleges that SCSU diverted Department of Agriculture grant funds from one USDA grant program to another, in violation of Section 1444 of the Food and Agricultural Act of 1977.

SCSU, located in Spartanburg, S.C., is a land grant college that receives funds for agricultural research and extension services under several USDA grant programs. The Section 1444 grant program provides funds to support continuing agricultural and forestry extension services. The statute expressly prohibits the use of Section 1444 funds for the construction of building projects.

Jeffrey Hass, a former SCSU contractor, filed the suit in June 1998 under the qui tam provisions of the False Claims Act. Under these provisions, individuals with knowledge of false claims for government funds may file an action on behalf of the United States. If the suit is successful, the whistleblower is awarded 15-30 percent of the recovery. Mr. Hass will collect $21,000.

The case was handled by the Office of the United States Attorney for South Carolina and the Civil Division of the Department of Justice.

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