Philadelphia-based Big Brothers Big Sisters of America Corporation has agreed to pay a hefty sum of $1.6 million to resolve allegations of false claims for federal grants awarded to help at-risk youth. The organization, now headquartered in Tampa, Florida, was accused of mishandling grant funds from 2009 to 2011.
“Organizations such as Big Brothers do great work, but in carrying out their mission they also have an obligation to the populations they serve and to the taxpayer to ensure that government grant funds are used responsibly according to the rules,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Civil Division. “The settlement announced today exemplifies the commitment to hold those who mishandle such funds accountable.”
Big Brothers, a national organization with approximately 300 independent affiliate agencies across the United States, received millions of dollars in grants from the federal government since 2004 to support initiatives on behalf of children at risk. However, the organization was found to have commingled grant funds with general operating funds, failed to segregate expenditures, and neglected to maintain internal financial controls.
The allegations were the focus of a 2013 audit performed by the Office of the Inspector General. Since then, Big Brothers has replaced its management team and implemented policies governing the use of federal grant funds. In addition to the $1.6 million payment, the organization has agreed to institute a strict compliance program that includes regular audits, a compliance team, and employee training.
“We appreciate the support of the U.S. Attorney for the Eastern District of Pennsylvania and the Civil Division in working with us on these kinds of cases,” said Department of Justice Inspector General Michael E. Horowitz. “The OIG’s auditors and investigators will continue to work with each other closely to uncover misuses of grant funds, and with our law enforcement partners to ensure that justice is served.”
The settlement was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Civil Division’s Commercial Litigation Branch. The Office of the Inspector General conducted the investigation.
The claims resolved by this settlement are allegations only; there has been no determination of liability.
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Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release â†â€â€
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