ST. LOUIS – In a stunning revelation, an assistant professor of pathology and immunology at the Washington University School of Medicine (WashU Medicine) has admitted to embezzling $412,000 from his employer through a fraudulent computer equipment scheme. Gary Grajales-Reyes, MD-PhD, who held office and conducted research at WashU Medicine, pleaded guilty in U.S. District Court to three counts of wire fraud.
The fraudulent scheme involved Grajales-Reyes submitting false requisition requests for internal and external hard drives and graphics cards, falsely claiming they were needed for his laboratory’s research. Utilizing these fictitious requests, WashU Medicine purchased the equipment from a vendor, which was then delivered to his lab. Grajales-Reyes sold this equipment without authority, using the proceeds for personal expenses.
Over the course of his scheme, Grajales-Reyes submitted 73 false requisition requests, leading to approximately $412,163 being paid by WashU Medicine and Washington University. He sold the computer parts through his personal eBay site and to a third-party seller on Amazon, utilizing the funds for himself.
Federal law enforcement seized a substantial quantity of collectible trading cards from Grajales-Reyes’ laboratory, which he had purchased with some of the embezzled funds. Scheduled for sentencing on December 4, Grajales-Reyes faces up to 20 years in prison and a fine of up to $250,000 per count.
The FBI investigated this case with the assistance of Washington University. Assistant U.S. Attorney Hal Goldsmith is prosecuting the matter.
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Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: Drug Trafficking|Fraud & Financial Crimes|Violent Crime|Sex Crimes|Cybercrime|Public Corruption|Weapons|Human Trafficking|White Collar Crime|Organized Crime
- Source: Official Source ↗
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