Harvard Defendants Pay Over $31 Million to Settle False Claims Act Allegat

[Dover]

BOSTON, Aug. 3 /U.S. Newswire/ -- Assistant Attorney General for the Department of Justice's Civil Division Peter Keisler; United States Attorney Michael J. Sullivan; Arnold J. Haiman, Acting General Counsel of the United States Agency for International Development; and Bruce Crandlemire, Acting Inspector General of the United States Agency for International Development's Office of Inspector General, announced today that the United States has successfully resolved its civil case against HARVARD UNIVERSITY, ANDREI SHLEIFER and JONATHAN HAY. In a settlement reached with the United States, HARVARD, SHLEIFER, HAY and FFIA, formerly known as Farallon Fixed Income Associates, LP, have agreed to pay a total amount in excess of $31 million to resolve civil claims arising out of Harvard's fraudulent billings to the U.S. Agency for International Development ("USAID").

The two senior Harvard University advisors, SHLEIFER, as Project Director, and HAY, as Project Manager, were paid under a USAID grant to lead a project to provide advice to the nascent Russian economy on privatization following the fall of communism and the creation of fair and open markets and the rule of law. The United States alleged that instead, SHLEIFER and HAY used their positions and substantial influence over Russian officials at this pivotal time in Russian history to advance their own and their spouses' private financial interests.

Under today's settlement, the total payments will exceed $31 million. Specifically the settlement calls for HARVARD to pay $26.5 million; SHLEIFER to pay $2 million; and HAY to pay between $1 million and $2 million (depending upon his earnings over the next 10 years). Also factored into the settlement amount total is $1.5 million already paid to the United States by FFIA, formerly known as Farallon Fixed Income Associates, LP, a company owned by SHLEIFER's wife, Nancy Zimmerman. In addition, SHLEIFER and HAY have agreed to be debarred by USAID.

..snip..

The United States' case provided extensive evidence that, despite the clear terms of the agreements, SHLEIFER, and HAY were making prohibited investments in Russia in the areas in which they were providing advice. The United States further demonstrated that SHLEIFER and HAY were self-dealing by using their positions, as well as USAID-funded resources, to advance their own personal business interests and investments and those of their wives and friends. Their self-dealing activities included using their influence over the Russian Securities Commission to which they were key advisors to secure for themselves and their wives the first ever launched and licensed mutual fund in Russia. The terms of the USAID grant strictly prohibited any investments in Russia by American advisors funded under the grant....cont'd

http://releases.usnewswire.com/GetRelease.asp?id=51292

Isn't this what Bushco and corporate buddies are doing in Iraq?

[Trillo]

1. Almost. Harvard didn't kill. nt