From the Wall St. Journal (free for seven days): As Universities Get Billions in Grants, Some See Abuses: Cornell Doctor Blows Whistle Over Use of Federal Funds, Alleging Phantom Studies. From the article:
After digging deeper, Dr. Sarafoglou, a 43-year-old native of Greece, concluded that Cornell was defrauding American taxpayers. Cornell, she believed, was taking grant money for studies and using it to support standard care for patients at New York-Presbyterian Hospital, a Cornell affiliate on Manhattan's Upper East Side.
Update: I knew the guys at Health Care Renewal would be all over this one. Here's the post.