PULLMAN, Wash. – Washington State University associate professor Haifang Wen is accused of swindling $8 million in grants from the federal government through a fraudulent scheme to research “asphalt composition technologies.”

Wen, 41, faces up to a $1 million fine and 30 years in prison after he was arrested along with his brother and sister-in-law for allegedly setting up fake companies to secure government grants that were supposed to be spent on research but instead went toward personal expenses, The Spokesman-Review reports.

MORE NEWS: From Classroom to Consulate Chef: Culinary Student Lands Dream Job at U.S. Embassy in Paris

The alleged scam was uncovered by the U.S. Attorney for the Western District of New York. Wen’s brother, Bin Win, and Bin’s wife, Pang Wen, helped to set up the fraud using fake companies based in Horseheads, New York, before moving to Great Falls, Virginia. All three Wens were arrested and charged with making false material statements to federal agencies, wire fraud, conspiracy and other crimes.

“As charged, the defendants took money intended to foster innovative research by small businesses, and instead used (it) for their own personal use,” U.S. Attorney William Hochul, Jr. said in a statement Wednesday. “This fraud scheme had the effect of depriving deserving businesses of the opportunity for research funds, while simultaneously hurting the very Western New York communities where the research and work were most needed.”

The statement contends the defendants received about 30 grants from the National Science Foundation, Department of Energy, Department of Transportation and the U.S. Department of Agriculture by fabricating letters of support and investment; lying about their businesses, employees and facilities; and falsifying reports on how the money was spent.

“The grant award proceeds were to be used for the development of asphalt composition technologies. Grant award funds were initially deposited into bank accounts controlled by the defendants in Horseheads and Elmira, New York, to then be distributed for the defendants’ personal use, and not the technology development represented in their grant applications,” the statement read.

Wen is the director of the Washington Center for asphalt technology at Washington State University, where he’s worked since 2008. He was arrested in Spokane Wednesday, but is still employed by the school, KXLY reports.

According to The Spokesman-Review:

Haifang Wen, a naturalized American citizen originally from China, was hired as an associate professor in WSU’s Department of Civil and Environmental Engineering in 2008. Much of his research centers on “bio-asphalt,” a kind of pavement made from recycled cooking oil.

The companies – whose names include “United Environment and Energy” and “Advanced Engineering Research” – were incorporated in Wisconsin and Horseheads, New York, where Bin Wen and Zhang lived before moving to Virginia.

Court records say the defendants misrepresented their relationships with several people who were listed as consultants and employees, in an attempt to collect additional grant money to pay their salaries.

The companies, for example, budgeted a Unilever employee in Chicago to receive more than $100,000 in federal money since 2010, but labor records showed she received only $13,200. A professor at Cornell University was budgeted to receive $163,000 over the same period, but records showed he received only $11,000. And an energy company manager was budgeted to receive $71,000 over that period, although he received nothing.

MORE NEWS: Know These Before Moving From Cyprus To The UK

WSU spokesman Robert Strenge had nothing to say about his colleague’s arrest.

“We’re aware of the arrest and the initial allegations,” he told The Spokesman-Review. “But we don’t have any additional information at this time.”

The Wens are expected back in court next month.