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Former Penn State professor charged with Fraud - abc27 WHTM

Former Penn State professor charged with fraud

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HARRISBURG, Pa. (WHTM) -

A former Penn State professor is charged with defrauding the U.S. government of research grant money.

Craig Grimes was acting through a company he owned, SentechBiomed of State College, when he requested a nearly $1.2 million grant from the National Institutes of Health, according to U.S. Attorney Peter Smith.

Grimes in his application specifically told the NIH he would direct about $509,000 to Penn State Hershey Medical Center to conduct clinical research.

The money was never paid to the hospital and the grant funds were spent, in part, by Grimes for his own use, Smith said.

He is also accused of falsifying information on a grant application to the Department of Energy while working at Penn State.

The 55-year-old Grimes, now living in Raleigh, N.C., was charged with wire fraud, false statements, and money laundering.

If convicted, he could face up to 35 years in prison and a $750,000 fine.

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