An assistant professor at Washington University School of Medicine has pleaded guilty to embezzling more than $400,000 from the institution. Gary Grajales-Reyes, MD-PhD, admitted in U.S. District Court on Wednesday to three counts of wire fraud.
According to court documents, Grajales-Reyes submitted false requisition requests for internal and external hard drives and graphics cards, claiming they were needed for his research laboratory. Washington University School of Medicine then purchased the equipment from its vendor, which shipped the items directly to Grajales-Reyes’ lab. After receiving the equipment, he sold it without the university’s knowledge or authorization through his personal eBay account and also to an Amazon-based third-party seller. He used the proceeds for personal expenses unrelated to university operations.
Over the course of the scheme, Grajales-Reyes submitted 73 false requisition requests covering about 761 computer parts. The university paid approximately $412,163 for these items. Federal authorities later seized a large number of collectible trading cards from his laboratory; investigators say he bought them using some of the money made from selling the computer equipment.
Grajales-Reyes is scheduled for sentencing on December 4. Each count carries a potential sentence of up to 20 years in prison and a fine that could reach $250,000.
The FBI investigated with assistance from Washington University. Assistant U.S. Attorney Hal Goldsmith is prosecuting.
