Former University of Iowa manager accused of pocketing $943k arrested

A former University of Iowa employee a state audit found had pocketed nearly $1 million by performing work for his own business using university equipment was arrested Thursday after a special investigation this month made details of the scheme public.

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Brian Busch, 45, was booked into the Johnson County Jail on charges of first-degree theft, tampering with records, first-degree fraud and ongoing criminal activity. As of Thursday evening, he had not had his first appearance in Johnson County District Court on the charges and bail had not been set.

The State Auditor’s Office published a 304-page report Sept. 4 that revealed Busch, who was manager of the UI Department of Physics and Astronomy’s Machine Shop, improperly collected $943,634.97 by contracting for services with a company he owned, but completed the work in the machine shop from 2017 through 2021.

He had not disclosed to the university that he owned the business, D3Signtech, that was doing jobs at the university, the audit found.

The UI said in a statement it 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 his firing Aug. 28. The university also placed on paid leave two other employees it said were involved, paying a total of nearly $473,250 while all three were not working at the UI.

The university said it was investigating “all potential avenues” to recoup wages paid to all three while they were on paid leave.

At a news conference earlier this month in Des Moines, State Auditor Rob Sand said his office worked on the investigation with UI police and a federal agency he declined to name.

“The university needs to improve their conflict of interest policies. They also need to do a better job of verifying them,” he told reporters.

The audit states that Busch had declined to meet with a detective during the state investigation.

“Mr. Busch stated he would consult his legal representation and provide an answer to the Detective. Mr. Busch did not return communication confirming to meet with the Detective with the University of Iowa Department of Public Safety,” the audit report said. “As a result, we did not attempt to interview Mr. Busch.”

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