A former Yale University administrator pleaded guilty to stealing more than $40 million from the school by purchasing and reselling electronics she bought with the funds.
According to a press release from the Department of Justice (DOJ), 42-year-old Jamie Petrone admitted to fraud and tax offenses in a Hartford, Connecticut, federal court last month. She served as the Director of Finance and Administration for the Department of Emergency Medicine at the University’s medical school. Court documents revealed that Petrone had the authority to make and authorize certain purchases for the department as long as they were below the $10,000 threshold.
In early 2013, the former employee began stealing the $40 million after she ordered and encouraged other workers to order millions of dollars worth of electronic hardware from partnered vendors using Yale medical school’s funds. Then, she arranged for the stolen devices to be shipped to an out-of-state business in exchange for money.
The DOJ added that Petrone falsified internal forms, claiming that the hardware was strictly for Yale Med’s needs. In addition, she made the purchases in smaller amounts of less than $10,000 that would require additional approval. The out-of-state business resold the electronic devices to customers. It paid Petrone by wiring the funds into a business account for Maziv Entertainment LLC, a company in which she is a principal.
Petrone pleaded guilty to one count of wire fraud, which carries the maximum sentence of 20 years in prison. She also faces one count of filing a false tax return, which has a three-year maximum sentence.
The former administrator has agreed to forfeit $560,421.14 seized from the Maziv Entertainment LLC bank account. She allegedly used the funds to purchase personal items, including expensive cars, real estate, and travel. A 2014 Mercedes-Benz G550, a 2017 Land Rover/Range Rover Sv Autobiography, a 2015 Cadillac Escalade Premium, a 2020 Mercedes Benz Model E450A, a 2016 Cadillac Escalade (4 Door Sport), and a 2018 Dodge Charger were some of the luxury items Petrone purchased with the funds, the press release detailed. She will also be forced to liquidate the three Connecticut homes she owns or co-owns as part of the deal.
On September 30, 2021, Petrone was arrested and later released on a $1 million bond as she awaits sentencing. She is scheduled to be sentenced on June 29, 2022.
