United States of America v. Dr. Qingyou Han and Lu Shao

Hammond, Indiana wire fraud criminal defense lawyer represented Dr. Qingyou Han, 62, of West Lafayette, Indiana, formerly a Purdue University professor and the Director of its Center for Materials Processing Research, was charged with wire fraud. Lu Shao, 54, of Lakewood, Ohio, was also charged with wire fraud, in violation of 18 U.S.C. § 1343.



"The National Science Foundation's (‘NSF’s’) Small Business Innovation Research (‘SBIR’) program provides small businesses with funding to conduct research and development work that will lead to the commercialization of innovative new products and services. Today’s sentence serves as a reminder that fraud in the SBIR Program will not be tolerated,” stated NSF Inspector General Allison Lerner. “The NSF Office of Inspector General (‘OIG’) remains committed to ensuring the integrity of the SBIR program and will actively pursue oversight of these taxpayer funds. I commend the U.S. Attorney’s Office for its support in this effort.”



The charging documents to which the defendants pled guilty allege that Dr. Han devised a scheme to defraud NSF into giving Hans Tech over $1.3 million in research grants through its SBIR and Small Business Technology Transfer (“STTR”) programs by making materially false and fraudulent pretenses, representations, promises and material omissions. In pleading guilty, Dr. Han, individually, and Ms. Shao on behalf of Hans Tech, acknowledged that the purpose of the scheme was to obtain grant funds allocated for research and to use some or all of those funds for other purposes, including to pay personal expenses or for the enrichment of Dr. Han, Ms. Shao, or their children. Hans Tech also received $300,000 in matching grant funds from the Indiana Economic Development Corporation, based upon some of the NSF SBIR/STTR awards. Prior to sentencing, Judge Simon ruled that loss in this case was over $1.6 million, or the total amount of the grants awarded to Hans Tech.



This case was prosecuted as a result of an investigation by National Science Foundation Office of Inspector General (NSF OIG) with assistance from the Internal Revenue Service, the Federal Bureau of Investigation, and the Michigan City Police Department. This case was prosecuted by Assistant United States Attorney Jill Koster and NSF OIG Investigative Attorney Sonia Khanzode. Ms. Khanzode was designated by U.S. Attorney Thomas Kirsch to serve as a Special Assistant United States Attorney in this case.



18:1343 WIRE FRAUD and FORFEITURE

SENTENCING held on 11/23/2020 for Qingyou Han (1) before Judge Philip P. Simon. Govt present by Jill R. Koster, AUSA in person and Sonia Khanzode (Natl Science Foundation) by telephone, Sharon Jefferson (by telephone) and Case Agent Nick Macedonia (by telephone). The dft is present in person and by counsel David Schertler (in person). U.S. Probation Officer Andrew Koelndorfer is in attendance, in person. Attorney Thomas Durkin (counsel for Hans Tech) is present by telephone. Court hears argument regarding the sentence to be imposed from the govt and defense. Court hears comments from the dft. Court states the reasons for the sentence to be imposed. Dft is sentenced on count 1s: Probation of 2 years. Special Assessment of $100. Fine - $25,000. Restitution to National Science Foundation in the amount of $1,351,996.00. Restitution to Indiana Economic Development Corp in the amount of $300,000.00, both joint and several with co-dft Hans Tech (2:19CR134) and 200 hours of community service at the direction of the U.S. Probation Dept. The restitution payments received from the dft shall be disbursed to the Indiana Economic Development Corp until paid in full and then to the federal victim, The National Science Foundation. The dft is advised of rights to an appeal. Counsel reminded of duty to perfect appeal, should client wish. The Govt moves to dismiss count 2 - GRANTED with govt to follow up with written motion on docket sheet. (Court Reporter Stacy Drohosky.) (nac) (Entered: 11/23/2020)