BELLEFONTE -- A preliminary hearing yesterday for an associate professor of education at the University has been delayed for at least 30 days on the advice of his psychiatrist.

Joseph Prewitt-Diaz, 48, was arraigned before District Justice Clifford Yorks last Thursday on charges of unlawfully obtaining $36,066 in money and services from the University between 1986 and 1991.

Prewitt-Diaz, a Vietnam War veteran and a resident of State College, is a patient in the psychiatric ward of the Veterans Administration hospital in Lebanon. His attorney, Robert Mitinger, said the professor has been undergoing treatment at the VA hospital since August but declined to specify why Prewitt-Diaz is there.

A continuance was granted yesterday by District Magistrate Ronald Horner in Centre County Courthouse, on a request by Prewitt-Diaz's attorney.

"I agreed to the continuance. I didn't object," Centre County District Attorney Ray Gricar said, who is prosecuting the case. "It seemed like the fair thing to do. There's no harm to our case by waiting 30 days. I'll give him the benefit of the doubt. I don't want to take advantage of someone who may be mentally deficient."

Prewitt-Diaz does not understand the charges against him and would be unable to contribute to or assist in his own defense, Mitinger said.

According to court records, bail has been set at $100,000 upon Prewitt-Diaz's release.

The professor is on an unpaid leave of absence.

According to court records, an investigation began after Prewitt-Diaz requested a cash advance from the dean of the College of Education on March 25, 1991 for motel and transportation expenses. Prewitt-Diaz claimed none of the motels in the area would accept credit cards; University Audit Manager Joseph Hrutkay discovered the motels did accept them. A preliminary investigation by Hrutkay found Prewitt-Diaz had submitted 25 fraudulent vouchers totaling $5,300 between July 1990 and April 1991 and that he used a University vehicle for personal business.

A July 11, 1991 search of Prewitt-Diaz's office, 125 Moore, produced more evidence, according to court records.

The University's purchasing department bought 1,500 copies of a text requested by Prewitt-Diaz for $3,838.69 in the spring of 1990. A purchase order showed Prewitt-Diaz sold 498 copies of the text for $5 each to various school districts that were billed by his business, Educational Psychological Associates.

Following further searches, it was found Prewitt-Diaz was employed as a psychologist at Chester Upland School District in Chester, according to court records. On Jan. 7 and 8, 1991, he charged the University $209.34 for University-related travel later found to be used for his own private work at the school.

Comparisons were made of all of Prewitt-Diaz's documents relating to his private consulting work and travel expense accounts for 1986 to 1991. A total of $36,066 was illegally obtained through travel reimbursement and use of University vehicles, according to the court records.

Unless another delay is granted, a new preliminary hearing will be held Feb. 26.