Former professor pleads guilty to committing over $1 million in fraud
Former engineering professor Yue Liu pleaded guilty to 'wire fraud' and 'unlawful financial transaction.'
Liu faces a maximum sentence of 30 years and up to $500,000 in fines.
A former engineering professor at the University of Wisconsin-Milwaukee has pleaded guilty on charges that involve defrauding foreign students out of money “through materially false promises and representations.”
“Beginning in approximately April 2016 and continuing through at least November 2020,” a Department of Justice press release reads, former engineering professor Yue Liu “devised and executed a scheme to defraud” in which he “fraudulently obtained more than $1.1 million from foreign students and visiting professors.”
“Liu promised foreign students that they would be part of a program run by an entity he controlled, which would pay expenses associated with their studies at UWM, including tuition and other costs,” the press release continues.
Liu created a business entity which he named UW International Education Foundation LLC in 2016, and in 2017 he renamed it Wisconsin International Education LLC, according to the February 2022 plea agreement.
“In reality, there was no such program affiliated with UWM, and UWM waived the students’ tuition because they were research assistants,” the press release states.
“Liu did not use the money from the students to pay their tuition and other expenses. Instead, he used a portion of the money he received for personal purposes, including to fund investment accounts and to pay credit card expenses.”
“Liu also attempted to conceal the scheme by creating a fraudulent research agreement between UWM and a fictitious entity purportedly based in China and using a portion of the money to fund this agreement.” according to the press release.
Yue Liu sent out emailed letters to foreign students accepted into the school’s graduate program, “in which he made false representations about the program, and he wrote those letters using a fictitious name he invented and using what appeared to be a UWM logo.”
According to the plea agreement, Liu voluntarily agreed to “waive prosecution by indictment in open court” by pleading guilty to two charges including “wire fraud” and “unlawful financial transaction.”
The document also states that the maximum terms of imprisonment and fines, including 20 years and $250,000 for Wire Fraud 10 years and $250,000 for unlawful financial transaction.
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“Each count also carries a mandatory special assessment of $100, and maximum of 5 years (Count One) and 3 years (Count Two) of supervised release,” the text reads.
Campus Reform obtained an Order Referring Case to Magistrate Judge filed on Feb. 24 which reads, “IT IS ORDERED that a Federal Rule of Criminal Procedure 11(b) plea colloquy be held before Magistrate Judge Nancy Joseph, who will thereafter issue a report and recommendation to this Court on the advisability of accepting Defendant’s proposed guilty plea.”
Senior Director of Integrated Marketing & Communications for UWM, Michelle Johnson, told Campus Reform, “While we cannot comment on pending legal cases, we can confirm that Troy Liu no longer works at UWM. We also want to express our gratitude to the U.S. Attorney’s Office, which is working to obtain restitution for our students.”
Campus Reform contacted the US Department of Justice and the University of Wisconsin-Milwaukee for comment. This article will be updated accordingly.
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