Texas A&M Research Foundation Scandal Exposed

HOUSTON – In a shocking revelation, the Texas A&M Research Foundation (TAMRF) has agreed to pay the United States $750,000 to resolve claims that the Foundation submitted improper charges to federal grants.

The investigation, which began in 2013 after a whistleblower lawsuit was filed, found that TAMRF improperly charged additional compensation to federal grants for academic employees at an institution of higher education ineligible to receive such pay. The Foundation also improperly charged various federal grants for expenses not properly allocable to them, including salaries and wages for individuals not working on the grants and supplies and equipment unrelated to the grants.

TAMRF’s actions, which took place from January 1, 2007 through November 3, 2016, were described as a ‘false claim and mischarging scheme’ by Acting Inspector General April G. Stephenson of the DOE-OIG. The investigation was a joint effort between multiple agencies, including the DOE-OIG, NASA-OIG, NSF-OIG, and DOT-OIG.

The whistleblowers, who were employed by TAMRF at the time, alleged that the Foundation allowed personnel to ignore federal restrictions, permitted the overcharging of salaries, and engaged in cost shifting. They also claimed that academic employees were wrongfully receiving longevity pay and that the Foundation was violating salary caps.

U.S. Attorney Ryan K. Patrick stated that the settlement was the result of an investigation that found TAMRF’s actions to be in violation of federal regulations. The agencies involved in the investigation praised the efforts of the Department of Justice in pursuing the matter and vowed to continue working collaboratively to aggressively investigate those who seek to defraud government programs.

The Texas A&M Research Foundation is an independent non-profit service organization that facilitates research and development within the Texas A&M University System. The Foundation is a recipient of federal grants, cooperative agreements, and contracts from various federal agencies, including the Department of Education, Department of Energy, NASA, National Science Foundation, and Department of Transportation.

The settlement demonstrates the government’s commitment to ensuring the integrity of its grant recipients and protecting taxpayers’ investment in research grant programs.

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