A former Yale University employee has pleaded guilty to stealing more than $40 million in computers and tablets from the university's School of Medicine.
Federal prosecutors say Jamie Petrone, 42, conducted the nearly decade-long scheme to fund her luxury lifestyle of expensive cars, real estate and travel.
Petrone admitted to the scheme Monday in federal court and pleaded guilty to charges of wire fraud and filing a false tax return, which could land her in jail for more than 20 years.
As part of her job responsibilities as Yale's Director of Finance and Administration for the Department of Emergency Medicine, Petrone had authority to make and authorize certain purchases for departmental needs as long as the purchase amount was below $10,000.
Beginning in 2013, Petrone herself or others working for her would order computers and other electronic hardware using Yale Med funds, according to the U.S. Attorney's Office for the District of Connecticut.
On official paperwork and in electronic communications, Petrone would report that the equipment was for specific needs at the school, such as particular medical studies, and she broke up the fraudulent purchases into orders below the $10,000 threshold that would require additional approval.
Petrone would then ship the electronics to an out-of-state business, which would resell the equipment to customers and pay Petrone by wiring funds into an account of a company in which she is a principal, Maziv Entertainment LLC.
Yale notified police after receiving an anonymous tip that Petrone was "ordering suspiciously high volumes of computer equipment, some of which was placed into her personal vehicle," the Hartford Courant reported.
In total, prosecutors say Petrone caused a loss of approximately $40.5 million to Yale. She used the proceeds of the scheme to buy numerous properties in several states, fund lavish trips and buy a fleet of luxury cars, including two Cadillac Escalades, a Mercedes-Benz G550 and E450A, Range Rover SV Autobiography and a Dodge Charger.
Petrone also failed to pay taxes on the money she received from selling the stolen equipment. She filed false federal tax returns for the 2013 through 2016 tax years and failed to file any federal tax returns for the 2017 through 2020 tax years, causing a loss of $6.4 million to the U.S. Treasury, according to prosecutors.
Petrone was initially arrested in September 2021. She remains free on a $1 million bond pending sentencing, which is set for June 29.
As part of a deal with prosecutors, Petrone has agreed to forfeit $560,421 that was seized from the Maziv Entertainment LLC bank account, as well as the six luxury vehicles. She's also agreed to liquidate three Connecticut properties that she owns or co-owns. A property she owns in Georgia may also be seized.
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