Michigan State Leader: Fraud Took Some Money In Nassar Fund
/ CBS Detroit
EAST LANSING, Mich. (AP)
Michigan State University's interim president says about half of $1.1 million distributed for counseling for victims of former sports doctor Larry Nassar has gone to people trying to defraud the school.
WASHINGTON, DC - JULY 24: Interim President of Michigan State University and former Michigan Gov. John Engler testifies during a hearing before the Consumer Protection, Product Safety, Insurance, and Data Security Subcommittee of Senate Commerce, Science, and Transportation Committee July 24, 2018 on Capitol Hill in Washington, DC. The hearing was to focus on changes made by the United States Olympic Committee (USOC), USA Gymnastics (USAG), and Michigan State University (MSU) to protect Olympic and amateur athletes from abuse. (Photo by Alex Wong/Getty Images)
John Engler said Friday that the $10 million Healing Assistance Fund is "deeply troubled" and isn't expected to distribute any more money for three to four months.
Payments stopped this summer after its administrator flagged the fraudulent claim issue.
WASHINGTON - MARCH 05: President & CEO of the National Association of Manufacturers John Engler attends the opening session of the White House's forum on health care reform in the East Room of the White House on March 5, 2009 in Washington, DC. Pointing to statistics that say the cost of health care now causes a bankruptcy in America every 30 seconds, Obama called on about 120 guests, including doctors, patients, lawmakers and health insurers, to help quickly fix the skyrocketing cost of health care. (Photo by Chip Somodevilla/Getty Images)
Engler said several people are under investigation and the school has terminated a vendor's contract.
CHARLOTTE, MI - FEBRUARY 05: Larry Nassar stands as he is sentenced by Judge Janice Cunningham for three counts of criminal sexual assault in Eaton County Circuit Court on February 5, 2018 in Charlotte, Michigan. Nassar has been accused of sexually assaulting more than 150 girls and young women while he was a physician for USA Gymnastics and Michigan State University. Cunningham sentenced Nassar to 40 to 125 years in prison. He is currently serving a 60-year sentence in federal prison for possession of child pornography. Last month a judge in Ingham County, Michigan sentenced Nassar to an 40 to 175 years in prison after he plead guilty to sexually assaulting seven girls. (Photo by Scott Olson/Getty Images)
Michigan State's police chief has said none of the fraudulent claims were made by anyone who filed complaints against Nassar.
BOSTON, MA - AUGUST 19: Members of the 2018-19 Women's National Team Trinity Thomas, Riley McCusker, Grace McCallum, Shilese Jones, Morgan Hurd, Kara Eaker, Jade Carey, and Simone Biles pose during day four of the U.S. Gymnastics Championships 2018 at TD Garden on August 19, 2018 in Boston, Massachusetts. (Photo by Tim Bradbury/Getty Images)
Nassar worked for Michigan State and USA Gymnastics, which trains Olympians. He is imprisoned for molesting athletes and possessing child pornography.
