2012-03-01 / Local & State

Ex-Penn State Professor Pleads Guilty To Fraud

HARRISBURG, Pa. (AP) – A former Penn State University professor has pleaded guilty to wire fraud, false statements and money laundering in connection with $3 million in federal research grants.

Federal prosecutors said 55-year-old Craig Grimes of Raleigh, N.C., defrauded the National Institutes of Health between 2006 and 2011 while a Penn State professor of material sciences and engineering.

Authorities said his State College company requested a $1.2 million grant from the National Institutes of Health, but funds weren't sent to Hershey Medical Center as promised and clinical studies and trials weren't done. Grimes was also charged with false statements in a $1.9 million Department of Energy grant.

Prosecutors said Tuesday that Grimes faces up to 20 years in prison and a $250,000 fine. His attorney did not immediately return a call seeking comment.

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