Sayler A. Fleming, U.S. Attorney | U.S. Attorney' Office for the Eastern District of Missouri
Sayler A. Fleming, U.S. Attorney | U.S. Attorney' Office for the Eastern District of Missouri
An assistant professor at the Washington University School of Medicine has admitted to embezzling $412,000 from the institution. Gary Grajales-Reyes, MD-PhD, pleaded guilty in U.S. District Court to three counts of wire fraud.
According to court documents, Grajales-Reyes submitted false requisition requests for computer equipment, including internal and external hard drives and graphics cards, claiming they were for his research laboratory at WashU Medicine. The university purchased these items based on his requests, which were shipped directly to his lab. After receiving the equipment, Grajales-Reyes sold it without the university’s knowledge or authorization. He used both a personal eBay account and an Amazon-based third-party seller to conduct these sales.
The funds obtained from selling the computer parts were used for personal expenses unrelated to his work at WashU Medicine. Over the course of the scheme, he submitted 73 false requests covering about 761 different computer parts. In total, Washington University paid approximately $412,163 for these items.
Federal authorities seized a significant quantity of collectible trading cards from Grajales-Reyes’ laboratory. Some of these cards had been purchased with proceeds from selling the computer equipment.
Grajales-Reyes is scheduled for sentencing on December 4. Each count of wire fraud carries a potential penalty of up to 20 years in prison and a fine that could reach $250,000.
The case was investigated by the FBI with cooperation from Washington University. Assistant U.S. Attorney Hal Goldsmith is prosecuting.
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