Yale worker stole $40M from medical college for properties, luxurious vehicles, prosecutors say

A former Yale School of Medicine worker stole $40 million in computer systems and electronics from the college and bought the products to fund a lavish life-style that included luxurious vehicles, a number of properties and journeys, prosecutors stated.

Jamie Petrone, 42, of Lithia Springs, Georgia, pleaded responsible to 1 rely of wire fraud and one rely of submitting a false tax return on Monday in Hartford federal courtroom within the case, the U.S. Attorney’s Office for the District of Connecticut introduced in a information launch.

She allegedly ran a scheme for eight years beginning in 2013, inflicting Yale to lose out on a complete of $40,504,200, prosecutors stated.

Petrone began work for Yale’s medical college within the emergency drugs division in 2008, in keeping with officers. She most not too long ago served because the division’s director of finance and administration.

In her place, Petrone had the authority to make and authorize purchases for the division with a cap of $10,000, the discharge acknowledged.

Since a minimum of 2013, she ordered, or had different workers order, thousands and thousands of {dollars} value of digital {hardware}, corresponding to Microsoft Surface Pro tablets and iPads, from distributors utilizing Yale Med funds. Petrone then organized to have the {hardware} shipped to an out-of-state enterprise in New York, which resold the products, prosecutors stated.

That enterprise then wired funds into an account for a corporation known as Maziv Entertainment LLC, during which she is a principal, in keeping with prosecutors. 

Petrone allegedly falsely represented on Yale inner types and digital communications that the {hardware} was for specified medical college wants, prosecutors stated. She additionally broke up the purchases into orders under the $10,000 threshold to keep away from requiring any oversight, in keeping with the discharge.

Prosecutors stated that Petrone used cash from the gross sales of the stolen items for private bills corresponding to actual property, journey, and costly vehicles. In the case, she’s needed to forfeit six luxurious vehicles: two Mercedes-Benz autos, two Cadillac Escalades, a Dodge Charger and a Range Rover, in keeping with the discharge.

She additionally didn’t pay taxes on the cash from the stolen tools, inflicting a lack of over $6 million to the U.S. Treasury, prosecutors stated. 

According to the discharge, Petrone filed false federal tax returns from 2013 to 2016 during which she claimed the prices of the stolen tools as enterprise bills. She didn’t file any federal tax returns from 2017 by way of 2020, prosecutors stated.

The investigation, carried out by the FBI and IRS, into Petrone’s fraud scheme began in August 2021 based mostly on data offered by Yale, an affidavit within the case acknowledged. 

Petrone estimated that about 90 % of her computer-related purchases had been fraudulent, she stated in a voluntary assertion to legislation enforcement, in keeping with the affidavit.

She was arrested in September 2021 and later launched on a $1 million bond pending her sentencing, officers stated.

Petrone has already misplaced a number of the luxurious items she bought for herself with the allegedly stolen cash.

She agreed to forfeit over $560,000 seized from the Maziv Entertainment LLC checking account, along with the six vehicles. Petrone additionally liquidated three Connecticut properties she owns or co-owns to fulfill her restitution obligation. A Georgia property she owns can also be topic to seizure and liquidation, prosecutors stated. 

“Ms. Petrone has accepted responsibility for her actions and is remorseful,” Petrone’s legal professional, Frank J. Riccio II, advised NBC News Wednesday morning. “She now looks forward towards sentencing and repairing some of the damage that has been caused.”

The cost of wire fraud carries a most jail time period of 20 years and the cost of submitting a false tax return carries a most time period of three years.

Her sentencing is scheduled for June 29.

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