Former UI employee convicted in theft of nearly $1 million for his own machine shop business

IOWA CITY - A former University of Iowa employee, who was nabbed in a state audit last year for pocketing nearly $1 million by performing work for his own business using university machine shop equipment, pleaded guilty Monday in Johnson County District Court.

Brian Busch, 45, pleaded guilty to first-degree theft and first-degree fraudulent practice, both class C felonies. He faces up to 10 years in prison.

According to plea agreement, the prosecution will recommend the judge run the two 10 years concurrently for a total of 10 years and then ask to suspend the prison term for three years probation.

The defense is free to request any sentence, including a deferred judgment, the plea stated.

Busch, according to the plea, will also pay $173,098 to the university.

A sentencing date hasn’t been set at this time.

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 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 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.

At a news conference in 2024, 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 stated that Busch had declined to meet with a detective during the state investigation.

Trish Mehaffey covers state and federal courts for The Gazette

Comments: (319) 398-8318; trish.mehaffey@thegazette.com