A West Lafayette couple, Qingyou Han and Lu Shao, has been charged with defrauding the National Science Foundation (NSF) out of over $1.3 million in grants.
According to the indictment, Dr. Qingyou Han, a Purdue University Professor and the Director of the Purdue Center for Materials Processing Research, and his wife Lu Shao, used a company they founded called Hans Tech to apply for and receive NSF grants through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
The indictment alleges that the couple used the grant funds to pay personal expenses and enrich themselves or their children. Among the claims, Shao is accused of purchasing a single-family home in her name and paying ‘rent’ to herself from Hans Tech of $3,000 per month using grant funds.
The indictment also alleges that the couple paid their minor children ‘salaries’ using grant funds. In 2009, Han and Shao falsely represented to NSF that the research project’s ‘Secretary’ and ‘Technical Assistant’ earned $24,000 each via hourly wages and ‘consulting,’ when, unbeknownst to NSF, the supposed employees were approximately 10 and 15 years old and they were Han and Shao’s own children.
Qingyou Han, 59, and Lu Shao, 51, are charged with engaging in a scheme to defraud the National Science Foundation. The indictment was announced by the United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II.
The United States Attorney’s Office emphasized that an indictment is merely an allegation and that all persons charged are presumed innocent until proven guilty in court.
Conviction in court will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is the result of an investigation by the National Science Foundation’s Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Jill Koster and NSF OIG Investigative Attorney Sonia Khanzode.
The indictment was returned by a grand jury on March 2024. No sentencing date has been set.
Key Facts
- State: Indiana
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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