The crime is signing the form saying that what you reported is true when you accepted federal money. That's what makes it a possible felony. If they disclosed

The crime is signing the form saying that what you reported is true when you accepted federal money. That's what makes it a possible felony. If they disclosed the funding source it is possible they wouldn't have access to as many grants. But they can just... not take money that they aren't eligible for. I'm finding it hard to drum up much sympathy for signing documents that state things you should have known weren't true. There are valid excuses that make it more a paperwork oversight than industrial espionage for sure. But this article didn't give enough detail to know what percentage were oversights versus knowing deception. Don't lie on paperwork you send to the feds.