The Scientist : NewsBlog Print: Columbia neuro employees steal 200K
The Scientist: NewsBlog:
Columbia neuro employees steal 200K
[Entry posted at 12th December 2008 03:53 PM GMT]

Two employees in the pediatric neurological research department at Columbia University were arrested Wednesday (December 10) for scamming the institution out of more than $200,000.

John Bzdil, the former manager of the pediatric neurosciences department at the university's Neurological Institute, and his wife, Heather Rinehart, will be presented with charges today (Dec 12) of wire fraud and conspiracy to commit mail fraud and wire fraud, a press officer from the US Attorney's office, Southern District of New York, where the couple is being prosecuted, told The Scientist.

Rinehart formerly worked in the fashion marketing industry before working for Bzdil, according to the Columbia Spectator

The Federal Bureau of Investigation had been investigating Bzdil and Rinehart, suspecting them of submitting bogus reimbursement forms to the university for spinal muscular atrophy studies that were never performed, totaling approximately $112,500, according to a press release from the attorney's office.

The prosecuting attorney, Julian Moore, was not available for comment, according to the press officer at the attorney's office.

In addition, Columbia paid more than $84,000 for cosmetics and Amazon.com purchases made by the couple, in addition to more than $25,000 in charges from a luxury resort in Pennsylvania.

An unnamed supervisor in the pediatric department refused to provide The Scientist with any more details about Bzdil, Rinehart, or their work at the university. An ISI search of "Bdzil J" pulls up one neuroscience paper, from 2000, and three veterinary papers based out of the Czech Republic from 2000-2007.

Both Bzdil and Rinehart are charged with one count of wire fraud and one count of conspiracy to commit mail fraud and wire fraud. Bzdil is charged with an additional count of mail fraud and wire fraud. Each count carries a maximum sentence of 20 years in prison and a $250,000 fine -- or twice the loss from the offense.


Related stories:
  • $Billions of fraud in HHS programs
    [16 June 2008]
  • Does fraud mean career death?
    [7 August 2008]

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    This is probably just the tip of an iceberg
    by anonymous poster

    [Comment posted 2008-12-15 15:59:00]
    Most likely there are plenty more such corruptions that go unchallenged or unreported, because all academic research institutions worry foremost about getting negative publicities. Image is no less critical for an ivory tower.


    Prosecuted, since they didn't have an MD or PhD.
    by Ellen Hunt

    [Comment posted 2008-12-15 13:01:56]
    My readers must forgive my cynicism. I contrast this matter with others that occurred in the University of California system in the last 20 years.

    Consider that a team of physicians at UC Davis Medical Center pulled a kickback scheme in which they received payments from equipment vendors to their teaching hospital. They were caught having $150,000 left in a drawer at the med center. They had spent at least that much on parties in lush locales, and there is no way to ever know how much they pocketed for themselves. Were they prosecuted? No. It was hushed up, and the story that was written about it didn't even say how much was involved. "Just a little money used for the occasional office party." My guesstimate is at least $1 million total was received.

    A group of physicians at UC Irvine had the UC police take fingerprints from homeless who had died to tell them who next of kin were. But it turned out that for those without next of kin they were stealing the bodies. They were slapped on the wrist. Not to be outdone, the good doctors at the UC Medical Center in Sacramento asked their branch of the UC PD to do the same thing. The only reason Sacramento didn't take up where the good men of Irvine left off is that they were prevented from doing so. No prosecution there either.

    The assistant director of the med center in Sacramento made a false police report to cover himself after his wife stormed in to complain to UC that her husband had been kidnapped by drug dealers in Sacramento. It seems he had disappeared for 3 days and said he was forced to snort cocaine and have sex with prostitutes while being held prisoner. Inquiries by the UC PD with the Sacramento PD found that this man had been seen carousing by the vice guys, and was well known to them. Was he prosecuted for anything? No. He was shuffled off to somewhere else, without so much as a report to the medical board. Oddly though, the honest cop who had investigated and reported the false police report found it needful to resign from the force.

    This year, LINK Dr. John Chang filed suit regarding the illegal practice of medicine and high case mortality by Dr. Chang's supervisor. After filing, everyone went quiet, which is what happens when UC pays for someone's silence. UC doesn't pay for silence unless there is a case.

    The list goes on and on. What I am saying is that UC, (and from what I have seen many other universities) systematically covers up every malfeasance up to manslaughter - if the crime is committed by an M.D. or a highly placed PhD.

    Anyone without such credentials can do whatever they like.


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