Lawrence Non-Profit Settles to Resolve Allegations of Federal Grant Fraud

BOSTON – A Lawrence-based non-profit agency, funded largely by federal government grants, has entered into a settlement agreement to resolve allegations that several of its employees, including its former executive director, were paid for work on federal grants that was never done.

Specifically, the Greater Lawrence Community Action Council (GLCAC) applied for, and received, grants from the United States Department of Education to pay a program director and a program case manager to work on a full-time basis. In reality, the GLCAC program director and program case manager were simultaneously holding down part-time, paid positions with the Massachusetts Society for the Prevention of Cruelty to Children, where they worked during normal GLCAC hours. In addition, GLCAC was responsible for claims to the Department of Education for the indirect costs of paying GLCAC’s facilities manager to work on a full-time basis, when in fact, during warm weather months, the facilities manager was golfing one or more afternoons per week during normal GLCAC working hours.

GLCAC also submitted, or caused to be submitted, claims to the U.S. Department of Health and Human Services for the costs of paying its former executive director’s salary for working on a full-time basis, when in fact the former executive director worked only approximately 50 percent of the time that GLCAC claimed.

In the settlement, GLCAC does not dispute the government’s allegations.

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