To report the fraud, go here:
http://www.grants.gov/web/grants/support/general-support/grant-fraud.html
Their number is listed , along with an email address, at the top of the page.
Also here:
http://www.consumer.ftc.gov/articles/0113-government-grant-scams
Its ILLEGAL to ask for money to receive it.
Prize Offers: You Don’t Have to Pay to Play!
http://www.ftc.gov/bcp/edu/pubs/consumer/telemarketing/tel17.shtm
Please do file reports with the FBI, your state attorney general and Department Of Justice,FTC & FCC..