University to pay government $1.8 million for Bedewi fraud

The University agreed on a $1.8 million settlement with the Justice Department to reimburse funds embezzled by former professor Nabih Bedewi.

The move came after Bedewi pled guilty last week to illegally diverting nearly a million dollars in federal funds into a private company he co-owned. Until June 2004, Bedewi was the director of the National Crash Analysis Center at GW’s campus in Ashburn, Va.

Tracy Schario, director of media relations, said the payment agreement does not mean that GW is accepting guilt for Bedewi’s actions.

“The government said they are missing $1.8 million through mismanagement of funds so we are going to make them whole,” she said.

Schario added that once the former professor is actually sentenced, the University and the federal government will work out how much restitution GW will receive from Bedewi, who faces a maximum of 10 years in prison. He will be sentenced in late June.

“Hopefully we’ll get all of the money he owes,” she said.

According to a press release from the Department of Justice, GW will pay the government $659,000 up front and will credit just more than $1.1 million to the Federal Highway Administration, which was a partner in the research center run by Bedewi.

Bedewi, whose sentencing is scheduled for June 29, resigned from his position in June after allegations of financial mismanagement of the crash center, which is funded mostly by the Department of Transportation. He was arrested in October and will likely serve between 37 and 46 months in prison.

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