UNIVERSITY OFFICIAL PLEADS GUILTY TO BILLING SCHEME
usdoj.gov | 3/31/09 | $365,000 | suspect: John Bzdil, III | victim: Columbia University
JOHN BZDIL, III, 35, pleaded guiltytoday to charges arising out of a scheme to defraud Columbia University ("Columbia") through the submission of phony invoices for expenses and purchases purportedly related to services provided by the Pediatric Neurosciences Department of the Neurological Institute at Columbia.
According to the criminal Complaint BZDIL is formerly the Manager of the Pediatric Neurosciences Department of the Neurological Institute atColumbia (the "Department").
From approximately June 2005 to approximately June 2008, BZDIL, using his position as Manager ofthe Department, defrauded Columbia of more than $180,000, by causing Columbia to make reimbursement payments for expenses and purchases that were unrelated to services provided by theDepartment.
As one part of this fraud, BZDIL submitted to Columbia phony reimbursement requests for spinal muscular atrophy studies purportedly performed by a medical professional affiliated withColumbia. BZDIL then authorized Columbia to make payment on the reimbursement requests, despite the fact that the spinal muscularatrophy studies described in the reimbursement requests had not been performed. BZDIL then diverted the money Columbia paid into his own accounts or accounts he controlled. In this manner,BZDIL stole over $112,500.
Additionally, BZDIL submitted reimbursement requests to Columbia for items purchased from Amazon.com for his persona luse. Exploiting his position as a Manager, BZDIL authorized these purchases, representing that they were goods and services related to his employment at Columbia. Through this scheme, the defendant purchased, and Columbia paid for, over $40,000 worth of personal items at Amazon.com, none of which was a legitimate employment-related expense.
BZDIL also submitted reimbursement requests forexpenses incurred at the Skytop Lodge, in Skytop, Pennsylvania,in connection with his wedding. These expenses totaled more than $25,000, and based on BZDIL's false representations, were alsopaid for by Columbia, purportedly for legitimate expenses related to the Department.