MSU says fraud involved in healing fund is "significant"
EAST LANSING - Michigan State University says the fraud involved in claims to a fund designed to help victims of the Larry Nassar scandal are "significant" - and that the investigation will continue for "some lengthy period of time."
MSU established a $10 million "Healing Assistance Fund" to help pay for counseling for sexual assault victims in December of 2017, as the case against Nassar was coming to a conclusion.
Nassar pleaded guilty to sexually assaulting a handful of women in Ingham and Eaton counties under the guise of treatment, but more than 300 women and girls have come forward to say he abused them over the course of a two decade career.
Nassar served as a doctor at MSU and for USA Gymnastics. He worked with Olympic athletes.
He's behind bars for pleading guilty to federal child porn charges. He was sentenced to up to 175 in his state cases.
But MSU stopped paying from the fund over the summer, citing concerns about potential fraud. On Friday, the MSU police chief says that investigation continues and that "there appears to be significant fraudulent financial claims made for reimbursement by the fund and payouts for those claims."
He says survivors themselves are not being accused of anything. But he says "due to the complex nature of the fraud" that the investigation "will continue for some time."
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