Lexington man who claimed false tie with University of Kentucky sentenced to prison
A Lexington businessman who cited a fake deal with the University of Kentucky in seeking a federal research grant has been sentenced to six months in prison.
Subhadarshi Nayak, 49, will be on home detention for six months after leaving prison. He also forfeited $127,028 to the federal government from personal and business accounts.
Nayak may owe restitution to federal agencies that approved grants to his companies, but that will be determined later, according to the court record.
Nayak is a native of India who came to the U.S. to get his doctorate in material science at the University of Tennessee, according to a sentencing memorandum.
He and his wife, Jyoti Agrawal, later moved to Lexington.
Nayak admitted that in 2013, he put false information in a proposal to the U.S. Department of Energy for a research grant related to a scanning electron microscope.
Nayak also acknowledged that when he applied for a grant in 2017 from the U.S. Environmental Protection Agency for research on cleaning up contaminated soil, he said he had an agreement with UK for a professor to work on the project.
That wasn’t true, but Nayak knew the claim would improve his chance of getting the grant, according to the court record.
He also filed false reports to get payments.
Nayak pleaded guilty to conspiracy to commit wire fraud and wire fraud. His plea agreement said the loss to the government from his conduct did not exceed $305,181.
“When individuals fraudulently obtain and misuse these valuable — and often scarce — resources, we all suffer the loss,” U.S. Attorney Carlton S. Shier IV said of research funding.
Agrawal, who is divorced from Nayak, is charged with conspiracy, wire fraud and money laundering. She is scheduled for trial next year.
Chief U.S. District Judge Danny C. Reeves sentenced Nayak Monday in federal court in Lexington.
