A former assistant professor at Washington University School of Medicine, Gary Grajales-Reyes, MD-PhD, has been sentenced to 27 months in prison for embezzling $412,163 from the university. The sentencing was handed down by U.S. District Judge Henry E. Autrey.
Grajales-Reyes was also ordered to repay the stolen funds. Federal law enforcement seized a significant amount of collectible trading cards from his laboratory, which he had purchased using 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, falsely claiming they were for his research lab. 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. He then used the proceeds for personal expenses.
During court proceedings, Assistant U.S. Attorney Hal Goldsmith stated that Grajales-Reyes “defrauded the very institution which has supported him in achieving all that he has,” adding that Washington University provided him “an education, substantial salary and benefits” as well as a research lab.
The crime resulted in several impacts on the university. In addition to losing funds meant for patient care and research, Washington University had to terminate a National Institutes of Health grant led by Grajales-Reyes, resulting in an $87,545 loss in grant funding. Staff spent over 500 hours investigating and addressing the fraud, which affected the department’s reputation and raised concerns among academic leaders and donors.
The FBI investigated the case with assistance from Washington University. Assistant U.S. Attorney Hal Goldsmith prosecuted.
