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Lourdes Foundation to pay $1.14 million fine to resolve claims of mishandling grant funds

Lourdes failed to perform criminal background checks for senior programs.

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Our Lady of Lourdes Health Foundation and two related companies have agreed to pay a $1,143,881.19 fine to resolve claims of mishandling grant funds, federal prosecutors said Friday.

Lourdes, which has its headquarters in Camden, administered grants for senior programs and failed to perform or keep records of criminal history checks for participants from 2012 until 2017, prosecutors said.

Forty-six people who were not properly vetted were allowed to participate in the programs, though, prosecutors noted, subsequent background checks after an investigation was launched determined that they were all eligible to participate.

Investigators found that employees had sought to conceal the lack of criminal checks, and also falsely completed time sheets showing participants serving when they did not.

Prosecutors said senior Lourdes management cooperated with their investigation, voluntarily relinquished the grants, and terminated employees who administered those grants.

“We hope this settlement will serve as a message to other managers to be vigilant in overseeing government-funded programs, and to ensure that employees do not attempt to conceal any noncompliance,” U.S. Attorneys William M. McSwain in Pennsylvania and Craig Carpenito in New Jersey said in a statement.