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Former UI machine shop manager who diverted funds granted deferred judgment
Will serve 3 years probation, pay $173,098 to university
Dec. 17, 2025 4:37 pm, Updated: Dec. 18, 2025 8:12 am
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IOWA CITY — A judge this week granted a deferred judgment to a former University of Iowa employee who was accused of diverting nearly $1 million of production and design jobs from the university to his own machine shop business.
Brian Busch, 45, previously pleaded guilty to first-degree theft and first-degree fraudulent practice, both class C felonies. He faced up to 10 years in prison.
The defense argued for a deferred judgment and three years probation, which 6th Judicial District Judge Kevin McKeever granted Monday.
The prosecution asked the court to run both 10-year sentences concurrently and then suspend the prison term for three years probation.
The deferred judgment allows Busch to request the case be expunged from public records if he completes probation without a serious violation and pays any fines and restitution.
McKeever also ordered Busch to pay $173,098 in restitution to the university, which was part of the plea agreement.
According to court documents, Busch, who was manager of the UI Department of Physics and Astronomy’s Machine Shop, diverted revenue generating production and design jobs for the UI shop to his own personal business, D3Signtech, using university labor, materials and facilities. The proceeds were deposited into his own personal accounts, according to an audit conducted by the State Auditor’s Office in September 2024.
The 304-page audit showed Busch improperly collected $943,635 by contracting for services with his company but completed the work in the UI machine shop from 2017 through 2021.
He hadn’t disclosed to the university that he owned D3Signtech that was doing jobs at the university, according to the audit.
Last year, UI officials in a statement said they learned of possible improprieties by Busch in 2021 and conducted its own investigation — and then called in the State Auditor’s Office, which it noted has subpoena powers.
Busch was put on paid leave and continued to collect his $83,153 annual salary for nearly three years while the audit was ongoing — until he was fired Aug. 28 of last year. The university also placed two other employees on paid leave, who were involved, paying a total of nearly $473,250 while all three were not working at the UI.
Trish Mehaffey covers state and federal courts for The Gazette
Comments: (319) 398-8318; trish.mehaffey@thegazette.com
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