A former assistant professor at Washington University School of Medicine, Gary Grajales-Reyes, MD-PhD, was sentenced to 27 months in prison by U.S. District Judge Henry E. Autrey on Thursday after embezzling $412,163 from the institution.
Grajales-Reyes was also ordered to repay the stolen funds. Authorities have already seized a significant number of collectible trading cards purchased with some of the embezzled money.
In August, Grajales-Reyes pleaded guilty to three counts of wire fraud. He admitted to submitting 73 false requisition requests for 761 pieces of computer equipment, claiming they were needed for his research laboratory. After receiving the equipment at his lab, he sold some items through his personal eBay account and others to an Amazon-based third-party seller. The proceeds were used for personal expenses.
During sentencing, Assistant U.S. Attorney Hal Goldsmith said Grajales-Reyes “defrauded the very institution which has supported him in achieving all that he has,” noting that Washington University provided him “an education, substantial salary and benefits” and a research lab.
The crime impacted Washington University in several ways beyond the financial loss. The university had to terminate a National Institutes of Health grant led by Grajales-Reyes as principal investigator, resulting in an additional loss of $87,545 in funding. Staff spent over 500 hours investigating and responding to the situation. This incident also affected the department’s reputation and raised concerns among academic leaders and supporters.
The FBI investigated the case with assistance from Washington University staff. Assistant U.S. Attorney Hal Goldsmith prosecuted.
