WashU professor admits to $412K embezzlement scheme

A Washington University School of Medicine faculty member has pleaded guilty to embezzling more than $400,000 through a scheme involving falsified equipment purchases.

Gary Grajales-Reyes, MD-PhD, an assistant professor of pathology and immunology at the St. Louis medical school, entered his plea Wednesday in U.S. District Court to three counts of wire fraud, according to federal prosecutors.

Investigators said Grajales-Reyes exploited the university’s purchasing system by filing fraudulent requisitions for internal and external hard drives as well as graphics cards, claiming the items were needed for research. Once the school approved the requests, its vendor shipped the equipment directly to his lab, where Grajales-Reyes diverted the items for personal gain.

Prosecutors said he sold the computer parts through two channels: directly on his personal eBay account and to a third-party seller operating on Amazon. The proceeds, which should have supported academic research, instead went to cover his own expenses, officials said.

From 2021 through the end of the scheme, Grajales-Reyes submitted 73 false requests totaling about 761 pieces of equipment. Washington University ultimately paid around $412,163 for the hardware, which he resold.

When federal authorities searched his lab, they also found a large collection of trading cards believed to have been purchased with some of the embezzled funds.

Sentencing is scheduled for 4 December. Each wire fraud count carries a possible penalty of up to 20 years in prison and a $250,000 fine.

The FBI led the investigation, working with Washington University officials. The case is being prosecuted by Assistant U.S. Attorney Hal Goldsmith.