Related Federal Cases
- AG James Reverses $1B Education Fund Cut by Trump Admin · New Mexico
- Elderly Targeted: 8 Charged in $10M ‘Tech Support’ Scam · Alabama
- Pennsylvania Firm Guilty of Bid Rigging in Tax Lien Auctions · Pennsylvania
- Arts & Crafts Fraud: Medicare Hit for $200K · Pennsylvania
- Finger-Painting Fraud: $200K Medicare Rip · Pennsylvania
Pa. Tech Firm Sued for Grant Fund Abuse
PHILADELPHIA – Drakontas LLC, a for-profit technology company with offices in Glenside, Pennsylvania and Camden, New Jersey, reached a civil settlement with the United States today over its use and accounting of federal funds.
Under the settlement agreement, Drakontas LLC agreed to pay $155,322 to resolve allegations that it improperly spent federal grant funds that it received under cooperative agreements with the United States Office of Justice Programs. The company provides software and communications technology to various markets, including law enforcement and public safety personnel.
The United States contended that during the year 2010, Drakontas LLC’s accounting system lacked sufficient detail and did not comply fully with the requirements of the cooperative agreements. As a result, the company did not accurately record and support all drawdowns of grant funds during that year.
In addition, the United States contended that during years 2009 and 2010, Drakontas LLC was reimbursed for certain compensation of high-level company executives that exceeded the amounts permitted under the cooperative agreements.
The investigation and resulting settlement underscore the need for federal grant recipients to follow the rules for using and tracking grant funds — and, in particular, any rules that limit employee compensation — because grant recipients will be held accountable for mishandling funds.
Drakontas LLC’s payment of the settlement amount resolves those accounting problems during year 2010 and the company’s payment of excess compensation during years 2009 and 2010. The company agreed to undertake a broad compliance program to ensure proper use and accounting of federal grant funds in the future.
The settlement agreement requires Drakontas LLC to maintain records of the training and to submit compliance-related documents with any applications for federal grant funds. Drakontas LLC did not admit to liability or wrongdoing as part of this settlement.
The allegations arose from an investigation led by the United States Office of Inspector General. The case was handled by Assistant United States Attorney Michael S. Macko.
Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News