SIUE employee indicted for misusing federal grant funds

An employee of Southern Illinois University-Edwardsville was indicted Tuesday in federal court in East St. Louis for wire fraud, misapplication of funds from programs receiving federal funds, and obstructing justice by tampering with a witness by a federal grand jury.

According to a press release issued by the U.S. Attorney's office, Korey L. Rush, 39, of Swansea is alleged to have misapplied, and permitted others to misapply, federal grant funds for his own personal use and the personal use of others.

During the time periods alleged in the indictment, Rush was employed by SIUE as the Assistant Program Director in the federally funded "Talent Search" program.

The indictment charges that federal grant funds were used to purchase gift cards, electronics, alcohol, groceries and other consumer goods in violation of the rules and regulations limiting the expenditure of federal grant funds.

Rush is further charged with encouraging a witness to provide false information to investigators in order to conceal the fact that
Rush authorized $8,000 in payments to the witness for services that were never performed.

The crime of wire fraud carries a maximum possible penalty of 20 years' imprisonment or a $250,000 fine, or both, and not more than three years' supervised release.

The crime of misapplication of funds from programs receiving federal funds, carries a maximum possible penalty of 10 years' imprisonment or a $250,000 fine, or both, and not more than three years' supervised release.

The crime of obstructing justice by tampering with a witness carries a maximum possible penalty of 20 years' imprisonment or a $250,000 fine, or both, and not more than 3 years' supervised release.

The investigation was conducted by the SIUE Police Department and the U.S. Department of Education. The case is being prosecuted by Assistant U.S. Attorney Steve Weinhoeft.