Asst. professor admits to embezzling $412K from WashU School of Medicine

ST. LOUIS - An assistant professor at the Washington University School of Medicine has admitted to embezzling $412,000 from his employer, fraudulently ordering computer equipment and reselling it for personal profit.

Gary Grajales-Reyes, MD-PhD, a WashU Medicine assistant professor of pathology and immunology, pleaded guilty Wednesday in federal court to three counts of wire fraud. Prosecutors say he waived his right to a trial, moving the case directly to a guilty plea.

According to federal charging documents obtained by FOX 2, Grajales-Reyes submitted requisition requests to WashU Medicine for internal and external hard drives and graphics cards, falsely claiming that the computer equipment was for his WashU Medicine research laboratory.

WashU purchased the equipment through a vendor and shipped it directly to Grajales-Reyes' research laboratory.

Instead of using the equipment for research, Grajales-Reyes sold it on his personal eBay account and through a third-party Amazon seller. Investigators say he submitted 73 false requisition requests to WashU Medicine and obtain 761 computers parts over the course of the scheme.

Grajales-Reyes then sold the parts for money that he used on personal expenses, unrelated to the work and operations of WashU Medicine.

While investigating, federal agents seized a large collection of collectible trading cards from Grajales-Reyes’ laboratory, which he reportedly purchased through some of the funds he obtained from selling the computer parts.

After pleading guilty, Grajales-Reyes is scheduled to be sentenced on Dec. 4. He could face up to 20 years in prison of $250,000 in fines for each charge.