ATLANTA – A former chief scientist for the Georgia Tech Research Institute (GRTI) has been sentenced to five years and 10 months in federal prison for defrauding both the university and the CIA.
James G. Maloney, 58, of Marietta and two co-conspirators used a Georgia Tech credit card that was supposed to go only toward purchases related to official university business and ran up hundreds of thousands of dollars in personal expenses.
James J. Acree, 58, of Atlanta, and James D. Fraley III, 45, of Canton, pleaded guilty in 2016 and cooperated with the government in the case.
The three conspirators are experts in electromagnetic analysis and measurements and were assigned to the GTRI’s Advanced Concepts Laboratory, where they worked on projects funded by the Defense Department, various intelligence agencies, and private industry.
From 2007 through 2013, the three ran up about $200,000 in charges on Fraley’s business credit card. They also entered into bogus consulting contracts with the U.S. Air Force and various private companies worth nearly $700,000.
The questionable charges were found during a routine audit in 2013. When confronted, Maloney suggested to his co-conspirators that they try to force Georgia Tech to shut down the audit by telling auditors the items charged were purchased to use on a classified CIA contract.
“Maloney, who was trusted to work on classified contracts for the U.S. government, took advantage of his high position at GRTI to line his own pockets at the public’s expense,” U.S. Attorney Ryan Buchanan said. “In addition to losing his job and his top-secret security clearance, Maloney is now facing a prison sentence.”
Besides the prison term, Maloney also was sentenced to three years of supervised release and ordered to pay restitution of more than $1.9 million. He was convicted on the charges last May after pleading guilty.
Acree and Fraley each were sentenced to serve three years on probation. Acree must pay more than $600,000 in restitution. Fraley must pay restitution of more than $475,000.