Raleigh professor, company to pay $152K to settle federal fraud allegations
Federal prosecutors say Dr. Michael Genoverde and his company made false statements to secure Small Business Innovation Research grants between 2018 and 2021.
RALEIGH, NORTH CAROLINA — A Raleigh professor and his company have agreed to pay $152,000 to settle federal allegations that they fraudulently obtained Small Business Innovation Research grants, according to the U.S. Attorney’s Office for the Eastern District of North Carolina.
Dr. Michael Genoverde and his company, Genoverde Biosciences LLC, faced accusations of making false statements to secure federal funding through the SBIR program, which provides grants to small businesses for research and development projects.
Details of the Alleged Fraud Scheme
Federal prosecutors alleged that Genoverde and his company misrepresented key information in their grant applications between 2018 and 2021. The allegations centered on false claims about the company’s qualifications and the nature of the research being conducted.
The SBIR program, administered by multiple federal agencies, requires applicants to meet specific eligibility criteria and use funds only for approved research purposes. Prosecutors contended that Genoverde’s applications contained material misstatements that influenced the government’s decision to award the grants.
Settlement Terms and Implications
Under the settlement agreement announced this week, neither Genoverde nor his company admitted wrongdoing. The $152,000 payment resolves the civil allegations without the need for a lengthy court proceeding.
“This settlement demonstrates our commitment to protecting the integrity of federal grant programs designed to support legitimate small business research,” said a spokesperson for the U.S. Attorney’s Office.
The case was investigated by the Small Business Administration’s Office of Inspector General, which monitors compliance with SBIR program requirements and investigates potential fraud.
Background on SBIR Program
The Small Business Innovation Research program awards billions of dollars annually to small businesses across the United States. The program aims to stimulate technological innovation and increase private sector commercialization of federal research.
Companies receiving SBIR grants must demonstrate that they meet size standards, are majority-owned by U.S. citizens, and will conduct the proposed research work primarily in the United States. Grant recipients are also required to provide detailed reports on their progress and use of funds.
This settlement serves as a reminder to grant applicants about the importance of accuracy and honesty in federal funding applications. The government continues to actively investigate and prosecute cases involving misuse of taxpayer dollars intended for legitimate research and development activities.
