Clark Atlanta University Settles Federal Lawsuit Over Misused Funds

Clark Atlanta University Settles Federal Lawsuit Over Misused Funds

ATLANTA

      Clark Atlanta University has agreed to pay $5 million to settle allegations that it misused funds from a federal contract that was supposed to help train minority students in environmental science.

      The historically Black college entered into an agreement with the U.S. Department of Energy in 1990 to receive $24 million and manage a consortium of 16 HBCUs. The consortium would be responsible for training a workforce of scientists and engineers in waste management, environmental health and technology. In 2003, the U.S. Department of Justice filed a lawsuit against CAU alleging that the university did not use the funds for those specific purposes. A whistleblower’s testimony formed the core of the government’s case.

      In addition to the $5 million settlement, CAU also signed a Compliance Agreement with the Department of Justice, which requires the university to ensure the proper use of federal funds.

      “The university has upgraded its administration and management practices, installed controls and is implementing a compliance system that will prevent errors like this from occurring in the future,” says CAU President Walter D. Broadnax.

      U.S. Attorney David Nahmias commended the institution’s cooperation with the investigation. “Clark Atlanta’s willingness to enter into a Compliance Agreement demonstrates their commitment to full compliance with federal laws and regulations going forward.”

— By staff and wire reports



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