GenPhar case delayed until May

The fraud trial for GenPhar founder Jian-Yun Dong has been delayed once again amid concerns about his lack of a permanent lawyer to represent him.

U.S. District Judge Richard Gergel on Wednesday canceled jury selection that was to begin next month and he postponed the case until May.

Prosecutors renewed their call for a restraining order to prevent Dong from spending money the government wants to seize, saying the scientist recently sent $20,000 in contested cash to China.

Gergel said he appreciates the government's concerns but is hesitant to rule on the request before Dong obtains legal counsel, a process that has dragged on for months.

Dong, 54, insists he is broke and can't afford a lawyer. Prosecutors question his claims of poverty, pointing to his various bank accounts and holdings, as well as the $105,000 salary he draws as a Medical University of South Carolina professor.

Gergel said the matter might soon be settled if it is determined that GenPhar's insurance policy covers Dong's legal defense on grant fraud charges, Dong and his Mount Pleasant biotech company are accused of stealing $3.6 million in federal grants intended for research on vaccines for the deadly Ebola and Marburg viruses.

Dong and his estranged wife, Danher Wang, also are accused of illegally funneling $31,000 to U.S. Sen. Lindsey Graham's campaign and the senator's political action committee. Graham is not accused of wrongdoing.

Gergel said he plans to try the grant fraud and campaign donation charges separately.

Dong said nothing during the brief hearing in U.S. District Court in Charleston. Outside the courtroom, however, he strongly proclaimed his innocence. "This is the worst case of persecution I have ever seen," he said.

Reach Glenn Smith at 937-5556 or on Twitter at @glennsmith5.