Ex-Yale official admits $40 million fraud scheme
By keeping the amount of individual purchase orders below $10,000, investigators said, Ms. Petrone was able to avoid an additional layer of review required by the university. In 2021, she arranged for the university to purchase 8,000 Surface Pro iPads and tablets, according to a criminal complaint.
Ms Petrone has held various administrative positions in the Department of Emergency Medicine since 2008 and worked in other capacities at Yale New Haven University and Hospital from 1999, according to court documents.
While under the watch of law enforcement last August, Ms Petrone drove 94 boxes that had been loaded into the back of her Range Rover and contained new Surface Pro tablets from her office to a FedEx facility in Orange, Conn., near New Haven, investigators said.
In announcing the plea deal, federal prosecutors said Ms. Petrone also evaded $6 million in federal taxes on her profits from the scheme, including by filing several years of false tax returns.
On those tax returns, they said, she falsely reported the costs of the stolen equipment as a business expense. For three years, Ms Petrone did not file any tax returns, according to prosecutors, who said she also agreed to pay restitution to the federal government for unpaid taxes.
“Ms. Petrone has accepted responsibility for her actions and awaits sentencing,” Frank J. Riccio II, Ms. Petrone’s attorney, said in an email on Friday.
Ms Petrone pleaded guilty to one count of wire fraud and one count of filing a false tax return. She faces a maximum sentence of 23 years in prison. Based on federal sentencing guidelines, his sentence is more likely to be in the range of eight to 10 years, with a fine of $30,000 to $300,000, according to the plea agreement. .
Ms Petrone has been freed on $1million bail until her sentencing, which is scheduled for June.