Yale University employee stole US$40 million to fund lavish lifestyle

A former director of finance at Yale's medical school has pleaded guilty to charges of fraud. Photo / Jamie Petrone

A former Yale employee has admitted to stealing more than $US40 million (NZ$57 million) worth of tech from the university to fund luxury cars, real estate and travel.

Jamie Petrone, 42, formerly worked as the director of finance and administration at Yale medical school's emergency medicine department, reports the New York Post.

Now she has pleaded guilty to federal charges of wire fraud and filing a false tax return. Petrone has forfeited more than $US560,000 ($800,000) and handed back a fleet of luxury cars, including two Mercedes Benzes, two Cadillac Escalades, a Dodge Charger and a Range Rover.

Petrone also agreed to sell her three Connecticut properties in restitution, while another property she owns in Georgia could also be seized and sold.

Petrone's role at the university authorised her to purchase equipment for the school as long as the total value was under $10,000 (NZ$14,455). She would either buy them herself or direct employees to buy them using the school's money.

She claimed the school needed tech such as iPads and Microsoft Surface tablets, then shipping the goods to a business outside the state which sold them for cash and wired the proceeds to an account where Petrone was listed as a principal.

Yale first questioned Petrone in 2020 about suspicious transactions and later received an anonymous tip that led to an internal investigation into the high number of equipment orders.

Petrone's role authorised her to make equipment purchases for Yale medical school's emergency medicine department. Photo / Getty Images

Petrone told the FBI last year that she'd conducted the scheme for "as many as 10 years" and "approximately 90 per cent of her computer-related purchases were fraudulent".

"Yale initially alerted authorities to evidence of suspected criminal behaviour last year and fully co-operated throughout the investigation," a Yale spokesperson told the outlet.

"The university thanks local law enforcement, the FBI, and the US Attorney's Office for their handling of the case. Since the incident, Yale has worked to identify and correct gaps in its internal financial controls."

Federal officials said Petrone had never paid tax on the money she received for the stolen equipment. She did, however, file several fraudulent tax returns claiming the cost of the equipment as a business expense.

She was released on a $1 million (NZ$1.4m) bond ahead of her sentencing, which is set to take place in June this year.