An assistant professor at Washington University School of Medicine has pleaded guilty to embezzling more than $400,000 from his employer. Gary Grajales-Reyes, MD-PhD, admitted in U.S. District Court on Wednesday to three counts of wire fraud.
Prosecutors stated that Grajales-Reyes submitted false requisition requests for internal and external hard drives and graphics cards, claiming they were needed for his research laboratory at WashU Medicine. The university purchased the equipment based on these requests and had it shipped directly to his lab. After receiving the items, Grajales-Reyes sold them without the university's knowledge or authorization through personal eBay sales and to an Amazon-based third-party seller.
Authorities reported that Grajales-Reyes used the proceeds from these sales for personal expenses unrelated to his work at WashU Medicine. Over the course of the scheme, he submitted 73 false requisition requests covering about 761 computer parts. The total loss amounted to approximately $412,163 paid by Washington University for equipment that was then resold.
Federal law enforcement also seized a significant number of collectible trading cards from Grajales-Reyes’ laboratory. Investigators said he bought some of these cards with funds obtained from selling the computer equipment.
Grajales-Reyes is scheduled for sentencing on December 4. Each count of wire fraud carries a possible penalty of up to 20 years in prison, a fine up to $250,000, or both.
The FBI led the investigation with support from Washington University. Assistant U.S. Attorney Hal Goldsmith is prosecuting the case.
"Gary Grajales-Reyes, MD-PhD, who maintained an office and research laboratory at the School of Medicine (WashU Medicine), pleaded guilty in U.S. District Court to three counts of wire fraud."
"The scheme involved Grajales-Reyes submitting false requisition requests to WashU Medicine for internal and external hard drives and graphics cards falsely claiming that the computer equipment was for his WashU Medicine research laboratory. Relying upon the false requisition requests, WashU Medicine purchased the requested computer equipment from its vendor, which then shipped the computer equipment directly to Grajales-Reyes’ research laboratory. WashU Medicine then paid for the computer equipment. After Grajales-Reyes received the falsely obtained computer equipment he sold the equipment by two different methods, without the knowledge or authority of WashU Medicine. He sold some of the computer equipment through his personal eBay site, and he also sold some of the computer equipment to an Amazon based third-party seller. He used the money obtained by selling the computer equipment for his own personal expenses unrelated to the work and operations of WashU Medicine, and without the knowledge or authority of WashU Medicine."
"Over the period of his scheme, Grajales-Reyes submitted 73 false requisition requests to WashU Medicine for internal and external hard drives and graphics cards, which included approximately 761 different computer parts."
"As a result of his scheme, WashU Medicine and Washington University paid approximately $412,163 for the computer parts, which Grajales-Reyes then sold for money which he used for his own personal expenses, unrelated to the work and operations of WashU Medicine."
"Federal law enforcement seized a substantial quantity of collectible trading cards from Grajales-Reyes’ laboratory. He had purchased the cards with some of the funds he obtained from selling the computer parts."
"Grajales-Reyes is scheduled to be sentenced on December 4. Each count carries a potential penalty of up to 20 years in prison, a fine of up to $250,000, or both prison and a fine."
"The FBI investigated the case, with the cooperation and assistance of Washington University. Assistant U.S. Attorney Hal Goldsmith is prosecuting the case."
