Group settles suit over using fed. grants to lobby

A national center to help grassroots groups push for "economic and racial justice" has agreed to pay $550,000 to settle a lawsuit accusing it of illegally using federal grant funds to lobby members of Congress.

U.S. Attorney Patrick J. Fitzgerald announced the agreement between the government and the Chicago-based National Training and Information Center on Wednesday.

The group received $3,162,580 in grants from the Justice Department for community initiatives starting in 2000, the department said. It said the group spent $207,000 for food and lodging for staffers and others to lobby Capitol Hill.

"We are committed to ensuring that Justice Department grant monies allocated for worthwhile community initiatives are expended for the purposes that were approved," Fitzgerald said in a statement issued by the Justice Department.

The lawsuit filed by the federal government alleged violations of the federal False Claims Act and breach of contract.

The group describes itself as "dedicated to building power to reclaim our democracy and advance a far-reaching racial and economic justice agenda."

The lawsuit, filed in U.S. District Court in Chicago in 2006, says the group received an initial award of $1 million in 2000 and $1,097,580 and $75,000, both in 2001, plus $990,000 in 2002 for a total of $3,162,580.

The agreement says that the organization does not admit to liability and settled "to avoid the delay, uncertainty and expense of protracted litigation."