Albany Research Scientist Sentenced for Making False Statements in Connection with NIH Grants

A 48-year-old Albany man has been sentenced to 1 year of probation for making false statements on conflict of interest certifications he submitted in connection with National Institutes of Health (NIH) grants. Gerwin Schalk, a research scientist employed by the New York State Department of Health (DOH), was sentenced by United States District Judge Mae A. D’Agostino.

Schalk was required to disclose any financial conflicts of interests to DOH and its affiliate, Health Research, Inc. (HRI), or certify that no conflicts existed. However, in pleading guilty, Schalk admitted that he knowingly and repeatedly lied about, and failed to disclose, payments he was receiving from a company whose products Schalk regularly purchased and used in connection with his research.

The company paying Schalk also billed HRI approximately $260,000 for sales of neurotechnology equipment to HRI, from 2012 through January 23, 2018, and was principally paid from federal grant money. Schalk resigned from state employment as part of his plea agreement.

This case was investigated by the New York State Inspector General’s Office and the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (DHHS-OIG). United States Attorney Grant C. Jaquith, New York State Inspector General Letizia Tagliafierro, and Scott J. Lampert, Special Agent in Charge of DHHS-OIG’s New York Region, made the announcement.

Schalk was also ordered to pay $70,000 in restitution and perform 50 hours of community service. Assistant U.S. Attorney Michael Barnett prosecuted the case. The investigation revealed that Schalk received at least $70,000 from the company from July 2013 to April 10, 2019, and signed at least 15 conflict of interest forms during that time, never once disclosing a payment from the company as he was required to do.

The investigation highlights the importance of transparency and accountability in the use of federal grant money. It also serves as a reminder of the consequences of making false statements in connection with government grants.

As Schalk begins his probation, residents of Albany are left wondering how such a prominent research scientist was able to evade detection for so long. The case is a stark reminder that no one is above the law, and that those who abuse their positions of power will be held accountable.

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