ROCHESTER, N.Y. (WROC) – The CEO of Solid Cell Inc. has pleaded guilty to misusing federal grant funding Wednesday. Officials say 52-year-old Arkady Malakhov became the CEO of the Rochester small business in 2006. In December 2016, Malakhov submitted a $200,000 grant proposal to the National Science Foundation to receive funding for a project. In July 2017, NSF awarded Solid Cell Inc. a grant to support the project. Officials say Malakhov requested $100,000 of the funding which was transferred to Solid Cell's bank account. According to officials, Malakhov converted a portion of the grant funds to his own use and transferred the money to other parties unrelated to the project knowing he did not have the authority to do so. Later that month, Malakhov obtained another $100,000 of the project's funding which he also deposited into a bank account that he controlled and converted some of the money for his own use. Malakhov's charge faces a maximum penalty of one year in prison and a $100,000 fine. Sentencing is scheduled for April 22, 2025, at 2:00 p.m.