Department of Homeland Security investigators have contacted New Jersey officials with questions about the fate of federal grant money awarded to Stevens Institute of Technology to help improve the nation's port security, ABC News has learned.

Two state officials described the federal inquiries about the possible misuse of nearly $3 million in Homeland Security grant money distributed to the Hoboken-based technical college, which has spent months under fire over allegations that it mismanaged its books. The state officials discussed the conversations on the condition they not be identified.

The non-profit university had in recent years become a darling of New Jersey's congressional delegation, which has directed millions of dollars in congressional earmarks and federal grants to the school. In 2008 alone, Stevens received $12.8 million in defense related earmarks requested by Sens. Robert Menendez (D), Frank Lautenberg (D) and other New Jersey lawmakers. Stevens also received $4.8 million in stimulus funds through grants from the National Science Foundation and the U.S. departments of transportation, health and human services, and education.

Department of Homeland Security investigators have contacted New Jersey officials with questions about the fate of federal grant money awarded to Stevens Institute of Technology to help improve the nation’s port security, ABC News has learned.

Two state officials described the federal inquiries about the possible misuse of nearly $3 million in Homeland Security grant money distributed to the Hoboken-based technical college, which has spent months under fire over allegations that it mismanaged its books. The state officials discussed the conversations on the condition they not be identified.

Stevens Institute of Technology President Harold Raveché, beset by allegations he accepted an exorbitant salary while improperly spending the school’s money, will resign in July, officials announced today. In addition, the school will submit to the state’s demands for increased financial oversight under a settlement agreement.

Attorney General Anne Milgram launched a 16-count lawsuit against the Hoboken school in September, alleging financial mismanagement and excessive compensation.

In the 1990s, the president of Adelphi University was accused of receiving excessive compensation and forced from office. Since then, the leaders of American, Towson, Texas Southern and other endowment-poor universities have also crashed to earth after plunging their institutions into turmoil for similar excesses.

Now, charges are swirling over Stevens Institute of Technology in Hoboken, N.J. The state attorney general has sued the institute and its president, Harold J. Raveché, accusing him of plundering the endowment and receiving $1.8 million in illegal low-interest loans for vacation homes, with half of them later forgiven.

725-car facility to be completed on Sinatra Drive 

The appellate division of the New Jersey Superior Court upheld on March 31 the Zoning Board of Adjustment's site plan and variance approval for Stevens Institute of Technology to construct a 725-car parking garage on Sinatra Drive underneath the recently opened Babbio Center.

From his 13th-floor offices in Hoboken overlooking the Stevens Institute of Technology campus and the Manhattan skyline, life looks pretty good to longtime school president Harold Raveche.