San Jose Scientist Charged With Defrauding Feds

SAN JOSE (CBS/AP) — The founder of a San Jose research company has been arrested on charges that he defrauded two federal agencies of about $1.2 million by submitting overlapping grant applications.

The U.S. attorney for the San Francisco Bay area announced Friday that a federal grand injury has indicted Atlas Scientific President Ali Kashani on charges of wire fraud and money laundering.

The indictment alleges that the 52-year-old Kashani received money from NASA and the National Science Foundation for the same research on a double-sized adhesive tape that would work in outer space.

Both agencies require applicants to disclose if they have already received or applied for small business grants involving similar research.

Kashani remains in custody and is scheduled to appear in court Tuesday.

The projects’s principal investigator also was named in the indictment, but now lives in China.

(Copyright 2013 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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