Purdue professor, wife indicted for fraud in federal court

Ron Wilkins | Journal & Courier

WEST LAFAYETTE, Ind. — Qingyou Han and his wife, Lu Shao, used National Science Foundation grant money to buy a West Lafayette house and pay off the mortgage, according to a charge filed Wednesday in federal court.

Han, a mechanical engineering technology professor at Purdue University and director for the Purdue Center for Materials Processing Research, and Shao managed to skirt National Science Foundation oversight rules through false reports and shell research companies that Han created, according to the indictment. They listed their minor children as a technical assistant and secretary.

Between 2007 and 2014, Han and Shao received $1.3 million in National Science Foundation research funds, and the indictment indicates much of those funds were misused for personal expenses.

The allegations against Han and Shao pertain to their management of funds for their business, not Han's involvement with the university. The university has no involvement with Han's privately owned business, according to points Purdue made in a written release.

The couple founded Hans Tech in 2006, which was the front for the grant applications.

Han and Shao purchased a single-family house with grant money at 3120 Bowfield Way in West Lafayette. After the purchase, Hans Tech paid $3,000 a month to lease the property, using National Science Foundation funds, according to the indictment.

Hans Tech indicated that the Bowfield property was owned by Shao, and if that information had been revealed, the lease payments would have been denied, according to the indictment.

The National Science Foundation also paid $24,000 to Han and Shao to offset the cost of a technical assistant, who happened to be the couple's oldest child who was 14 and 15 at the time, according to the indictment.

The foundation also paid $10,000 for a secretary, who the indictment indicates was the couple's youngest child who was 9 or 10 at the time.

Those funds were kept by Han and Shao, according to the indictment.

If the couple are convicted of the charge, Han and Shao will forfeit any proceeds obtained directly or indirectly from the scheme, according to the indictment.

Purdue spokesman Jim Bush said in a written statement, "This indictment, which Purdue learned about (Thursday) through the U.S. attorney’s announcement, relates to a faculty member’s personal outside business activity.

"The university is looking into the matter. To the extent the we have any information relevant to the case, we will, of course, provide it to the authorities."

The J&C also asked if Han is still employed by the university. His name and position still appear on the university's online directory.

Purdue's statement did not respond to the Journal & Courier's inquiries about Han's employment.

Journal & Courier reporter Jeong Park contributed to this story.

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