Three Georgia Tech Scientists Sentenced for $2M Fraud Involving University and CIA

Prison Sentence and Millions in Restitution Collected Following Abuse of University Credit Card and False Consulting Activities by Former Georgia Tech Scientists

• Former Georgia Tech researcher, James Maloney, along with James J. Acree and James D. Fraley III were found guilty of defrauding the Central Intelligence Agency and the university. Maloney was sentenced to almost six years in prison and was ordered to pay nearly $2 million in restitution. Acree and Fraley were sentenced to three years of probation.
• Fraley had access to a university credit card intended for official use, but from 2007 to 2013, he, Maloney, and Acree allegedly used the card for personal expenses, resulting in more than $200,000 worth of purchases, which included items such as four-wheelers, iPads, cameras, and a 3D printer.
• Apart from credit card fraud, the three men were also convicted of fraudulent consulting activity. They would act as if their consulting clients' work was being conducted by the Georgia Tech Research Institute (GTRI), which was a conflict of interest with the university.
• In one instance, they directed Georgia Tech employees to bill their consulting work to a classified CIA contract that was unrelated to the consulting company. This abuse of trust resulted in severe legal consequences, especially for Maloney, who received the harshest sentence.
• Acree and Fraley served the first year and first eight months of their probation in home confinement, respectively, and were each ordered to pay restitution. The case sent a clear message about the FBI's commitment to holding accountable those who abuse their positions for personal gain.

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