WSU educator accused of fraud is not part of plea deal, lawyer says

A plea bargain may be in the works for co-defendants of the Washington State University assistant professor arrested last year for allegedly defrauding the federal government of more than $8 million, but Haifang “Harry” Wen will have no part of it, according to his defense attorney.

An online U.S. Court docket entry for a June 21 hearing noted “parties are working on a possible solution” and that “the government is prepared to tender a plea,” attorney Jeffery Coopersmith confirmed.

Coopersmith, Wen’s attorney, is partner in the Seattle-based, international law firm, Davis Wright Tremaine, and said his client will not be considering any criminal plea, and the notes pertain only to Wen’s co-defendants.

Wen, then 41, was arrested Feb. 24, 2016, in Pullman and charged with allegedly defrauding federal research agencies out of more than $8 million, according to information from the U.S. Attorney’s Office in Rochester, N.Y.

His brother, Bin “Ben” Wen, and sister-in-law, Pang “Jessica” Wen, 43, were arrested on the same date and charges in Great Falls, Va.

Haifang Wen was released after his initial court appearance without bond, the same day as the three arrests.

Wen made headlines in 2014 with his creation of an environmentally friendly asphalt binder using recycled cooking oil in place of crude petroleum.

The trio received about 30 grants totaling more than $8 million from the National Science Foundation, Department of Energy, Department of Transportation and U.S. Department of Agriculture to be used for development of asphalt composition technologies, and allegedly used the funds for personal expenses rather than research represented in their grant applications.

They are also accused of: fabricating letters of support and investment; providing false information in research grant proposals and reports regarding business entities, business employees, business or research facilities, matching funds and investments; and providing falsified reports and emails regarding how federal research funds were expended, according to documents from the Rochester branch of the U.S. Attorney’s Office.

Tiffany Lee, the U.S. attorney handling the case, said while no hearings are currently set, a control date, where both sides will discuss the case, is set for Aug. 15.

Lee said the defendants are not scheduled to appear on that date.

Lee said she was unable to confirm, deny or elaborate on any aspects of the case at this time.

U.S. Attorney William J. Hochul said in a written statement after the arrests that Wen’s alleged actions had devastating effects on those who would have benefited from proper use of the funds.

“This fraud scheme had the effect of depriving deserving businesses of the opportunity for research funds, while simultaneously hurting the very Western New York communities where the research and work were most needed,” Hochul said in 2016.

More than $600,000 was recovered from accounts under the name of Haifang Wen with Scottrade Inc., and Fidelity Management Trust in March 2016.

According to Part II of WSU’s faculty manual, Wen, as tenured faculty, may be subject to informal and formal discipline by the university ranging from a written warning, written reprimand, suspension or termination of employment based on Faculty Conduct Subject to University Discipline, section 3. “Use of research funds, facilities, or staff for unauthorized and/or illegal activities.” It does not refer to any legal action against a faculty member.

Such action cannot take place until a university investigation is complete, according to the manual. Such an investigation is limited to a time frame of four months – 120 calendar days.

Phil Weiler, WSU vice president for marketing and communications, said the university is unable to comment on the case, or on policy that could affect faculty or staff.

Wen was not reachable for comment.

The charges carry a maximum penalty of 30 years in prison and a $1 million fine.