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Engler: Scammers claim nearly half of healing fund money distributed so far

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Nearly half of the $1,159,106 distributed by Michigan State's healing assistance fund has been sent to people believed to be taking advantage of the money intended to help survivors of Larry Nassar.

MSU President John Engler made the announcement at Friday's Board of Trustees meeting.

MSU Spokeswoman Emily Guerrant said the school terminated it's contract with the company administering the fund this week. MSU is now starting an RFP process to find a new administrator, Guerrant said.

The $10 million healing assistance fund was set up to reimburse Nassar survivors for therapy. The fund was suspended in July after the university learned about possible fraudulent claims being made.

The MSU Police Department is now investigating.