A $16 million grant fraud scheme has been exposed in Maryland, with federal authorities charging a professor with falsifying data in grant applications made to the U.S. National Institutes of Health (NIH).
Hoau-Yan Wang, 67, a tenured medical professor at a public university’s medical school, is accused of engaging in the scheme from approximately May 2015 through approximately April 2023. Wang allegedly fabricated and falsified scientific data in grant applications to the NIH on behalf of himself and a publicly traded Texas biopharmaceutical company.
According to court documents, the fraudulent grant applications to the NIH sought funding for scientific research of a potential treatment and diagnostic test for Alzheimer’s disease. The grants, awarded from approximately 2017 to 2021, were worth around $16 million, with part of the funds used to fund Wang’s laboratory work and salary.
The indictment alleges that Wang’s work under these grants was related to the early developmental phases of the proposed drug and diagnostic test, typically referred to by the U.S. Food and Drug Administration as Phase 1 and Phase 2. Wang’s alleged scientific data falsification in the NIH grant applications related to how the proposed drug and diagnostic test were intended to work and the improvement of certain indicators associated with Alzheimer’s disease after treatment with the proposed drug.
Wang is charged with one count of major fraud against the United States, two counts of wire fraud, and one count of false statements. If convicted, he faces a maximum penalty of 10 years in prison for the count of major fraud, 20 years in prison for each count of wire fraud, and five years in prison for the count of false statements.
The FBI Washington Field Office is investigating the case, with Principal Deputy Assistant Attorney General Nicole M. Argentieri and Assistant Director in Charge David Sundberg making the announcement. Trial Attorney Andrew Tyler, Deputy Chief Anna Kaminska, and Assistant Chief Leslie Garthwaite of the Criminal Division’s Fraud Section are prosecuting the case.
Wang is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case serves as a reminder of the importance of transparency and accountability in scientific research, with the NIH awarding millions of dollars in grants to support innovative research and development.
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Key Facts
- State: Maryland
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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