Former University of Iowa staff member Brian Busch was arrested Thursday following a state audit report that showed he diverted nearly $1 million in UI funds to a personal bank account. 

According to the Johnson County jail roster, Busch is accused of first degree theft, tampering with records, committing specified unlawful activity, and first degree fraudulent practice. 

Busch managed the UI Department of Physics and Astronomy Machine Shop where he is accused of using university equipment to complete jobs for the company Xometry and pocketing the pay. The machine shop contains various tools for the department. 

An investigation started in 2021 when State Auditor Rob Sand was requested by the university to audit the department after they suspected there was a conflict of interest violation, according to a news release.

Sand released the report on Sept. 4, stating that Busch put $943,634 into a bank account managed by D3Signtech, which is Busch’s own company. The university says Busch failed to disclose he owned the company while working at the Machine Shop, which is a conflict of interest. 

Sand’s report also found over $6,000 was improperly used on Busch’s UI credit card. In 2021, he was put on paid administrative leave pending the audit along with two other workers in the machine shop, William Crile and Spencer Kuhl. They have both left the university, according to the release. 

While on leave, Busch was still receiving a salary of over $81,000, according to the UI Office of Transparency. Busch and Kuhl were fired from the university on Aug. 28. Crile left the university in July 2023, according to the release.

The UI said it’s reviewing its conflict of interest policy and has updated procedures for tracking funds at the Machine Shop. The university also said it’s investigating ways to recoup the wages given to the three men. 

Busch is currently at the Johnson County Jail House and is awaiting a court appearance.