Michigan State leader: Fraud took some money in Nassar fund

EAST LANSING, Mich. – Michigan State University’s interim president says about half of $1.1 million distributed for counselling for victims of former sports doctor Larry Nassar has gone to people trying to defraud the school.

John Engler said Friday that the $10 million Healing Assistance Fund is “deeply troubled” and is not expected to distribute any more money for three to four months.

Payments stopped this summer after its administrator flagged the fraudulent claim issue.

Engler said several people are under investigation and the school has terminated a vendor’s contract.

Michigan State’s police chief has said none of the fraudulent claims were made by anyone who filed complaints against Nassar.

Nassar worked for Michigan State and USA Gymnastics, which trains Olympians. He is imprisoned for molesting athletes and possessing child pornography.