SEC Attorney Sentenced for Switching Sides after Leaving Government
A former attorney with the Denver regional office of the Securities and Exchange Commission (SEC) was convicted for violating 18 U.S.C. 207(a), which prohibits former Government employees from communicating with the Government with regard to matters they worked on as a Government employee.
The SEC attorney was responsible for investigating stock promoters regarding their promotion of Integrated Resources Technologies, Inc. later known as Comprehensive Environmental Systems, Inc. (CESI/IRTI). Upon departure from the SEC, the attorney was hired by the stock promoters to perform legal work for companies owned by them, including CESI/IRTI. The attorney, in his capacity as counsel for, and director of CESI/IRTI, responded to a subpoena, and communicated with SEC officials on behalf of CESI/IRTI.
The attorney was sentenced to one year of imprisonment for this post-employment violation of a criminal statute.
FAA Employee Sentenced for Bribery
A former employee of the Federal Aviation Administration (FAA) was convicted of bribery. The employee accepted bribes in exchange for providing preferential treatment in the processing of applications for pilots' certificates.
The employee's primary responsibility was to review and process applications for
FAA-issued pilot certificates. Upon completion of the review, the employee had the authority to approve or deny applications. The employee received $2,000 and an all-expense paid trip to Korea in exchange for preferential treatment of applications for Korean pilots from the flight school, Wings Over America.
The employee was sentenced to pay a $2,000 fine and serve four months in prison, followed by three years probation for violating 18 U.S.C. 201(b)(2).
Agriculture Department Manager Suspended for Hatch Act Violation
A Department of Agriculture manager received a four month suspension after soliciting political contributions from subordinates. The Hatch Act prohibits Federal employees from certain activities in partisan political campaigns.
The employee asked subordinates at work to contribute to the 1992 Democratic presidential campaign. Although the Hatch Act was amended in 1994 to allow Federal employees to participate more in partisan political activities, it still prohibits employees from engaging in political activities while on duty or in any Government office.
Former Postmaster General Pays Settlement to End Conflict of Interest Investigation
A former Postmaster General of the United States agreed to pay a $27,550 settlement to end a complaint brought by the Department of Justice pertaining to a conflict of interest because of his holdings in Coca-Cola.
The complaint arose while the Postal Service was exploring a potential strategic alliance between the Postal Service and Coca-Cola. The Postal Service Board of Governors had the authority to approve the strategic alliance, and the Postmaster General's role was to advise the Board of Governors with regard to their consideration of strategic alliances. The Postmaster General rendered advice to the Board even though he owned shares of Coca-Cola stock and therefore had a personal financial interest in the decision.
The Postmaster General was charged specifically with violating 18 U.S.C. 208, a criminal statute that prohibits an employee from participating personally and substantially, as a Government official, in a particular matter in which he or she has a financial interest.
Civilian Army Employee Sentenced for Theft of Government Property
A former civilian employee of the Fort Jackson Post Exchange in South Carolina was convicted of stealing Government property. The employee concealed and retained $2500 worth of electronic equipment stolen from the exchange where he worked. The employee pleaded guilty to violating 18 U.S.C. 641, and was sentenced to four months imprisonment, to be followed by three years probation.
Department of Justice Attorney Sentenced for Two Felony Counts
A high-ranking attorney for the Department of Justice was convicted of representing a private party before a Federal Agency in which the U.S. was a party in interest, in violation of 18 U.S.C. 205. He was also convicted of theft of Government property, in violation of 18 U.S.C. 64l. The attorney represented Native Americans before the Department of the Interior in private litigation, and submitted false travel vouchers for Government reimbursement while he served as an employee of the Department of Justice. Section 205 prohibits Federal personnel from representing anyone before a Federal agency or court in connection with a matter in which the United States has a direct and substantial interest.
The attorney pleaded guilty, and was sentenced to four months of home detention, and one year probation. The plea agreement also stipulated that the attorney pay restitution to Department of Justice in the amount of $5,000. Additionally, the judge ordered that the attorney pay a $5,000 fine, and approximately $2,500 in probation costs.
International Olympic Committee Ousts Six Members for Impropriety
Six International Olympic Committee (IOC) members were expelled from the IOC following an investigation into allegations of bribery in Salt Lake City's successful bid for the 2002 Winter Games. The Salt Lake City bid officials allegedly spent between $4 million and $7 million on gifts, scholarships, cash payments, and other inducements for IOC members.
High-Ranking Government Official Agrees to Conflict of Interest Settlement
A high-ranking Government official was charged with violating 18 U.S.C. 208, which governs official acts affecting a personal financial interest. The Federal employee, an Assistant to the President for National Security Affairs, was investigated for holding stock in certain petroleum companies while serving as the Deputy Assistant to the President for National Security Affairs.
The employee was advised by National Security Council Legal Adviser's Office to divest his shares of his family's petroleum, and other energy-producing stocks to avoid any conflict of interest. During the time the employee was told to divest his stocks, he was involved in his official capacity in matters that may have had a direct and predictable effect on Amoco Corporation, a petroleum company in which he owned stock.
The official agreed to pay the Department of the Treasury $23,043, which represented his increase value of the stocks, to settle the matter.
Government Maintains Tough Stance on Improper Use of Frequent Flyer Miles
A Department of Justice employee received a one month suspension for using frequent flyer miles that he earned through his official Government travel to permit him, members of his family, and an acquaintance to take 17 trips on Continental Airlines. The trips were valued at $31,534.
In the employee's appeal he did not deny the trips were taken but argued that there was no intent to misuse Government property. Additionally, he alleged that it was an unofficial policy in the Guam office which allowed personal use of frequent flyer miles accrued on official business. The employee cited two younger employees who had used frequent flyer miles but had no action taken against them by the Department of Justice.
The Merit Systems Protection Board decided to uphold the one month suspension imposed by the Department of Justice, and concluded that the circumstances surrounding the misconduct of other employees were not sufficiently similar, and that the rationale that others had used frequent flyer miles did not constitute a mitigating factor.
Government Employees Sentenced for Political Fundraising in a USDA Building
Four employees of the Department of Agriculture (USDA) were convicted for political fundraising on Federal property. The USDA employees organized a Political Action Committee to raise money for the Clinton 1992 campaign. They collected a total of $3,250 in checks from various individuals in a USDA building. To encourage donations, the four employees suggested that contributions to the fund might result in special consideration from the USDA officials affiliated with the Administration. Following the election, the four created a list of USDA employees who should not, in their opinion, receive special consideration from the Administration.
The four defendants each received four years probation. Two of the defendants were fined $1,000 and ordered to perform community service. The other two defendants were fined $2,500 and ordered to serve 30 days detention in a halfway house.
D.C. Public Library Director Sentenced for Travel Reimbursement Scheme
The former director of the District of Columbia Public Library was convicted for fraudulent activities involving Government cash advances and reimbursement payments. At the time, he was serving as both the head of the D.C. Public Library and the president of a trade organization, the American Library Association.
The director took cash advances from the D.C. Public Library funds to pay for expenses incurred in his role as president of the American Library Association. He then asked the trade organization to reimburse him by sending checks directly to his home address. In this manner, the library director deposited over $24,000 into his personal bank account. Subsequently, the director failed to reimburse the D.C. Public Library account for the cash advances.
In September 1998, a judge ordered the former director to pay back the $24,000 owed to the D.C. Library, plus an additional $16,860 owed for back Federal income taxes. He was sentenced to five months of home detention, to be followed by two years probation for violation of 18 U.S.C. 208, a conflicts of interest criminal statute.
Social Security Administration Employee's Bribery Conspiracy Ends with Prison Sentence
A Social Security Administration employee and her husband were convicted for soliciting bribes from individuals seeking Social Security benefits for themselves or family members. The couple approached citizens who were have difficulty qualifying for Supplemental Social Security benefits. They would offer to arrange to have benefits reinstated or complete paperwork for the individual. Afterwards, they demanded payment for their services.
At their 1997 trial in Louisiana, a judge ordered the employee to 46 months imprisonment followed by three years probation. The employee's husband received 30 months imprisonment followed by three years probation. They each paid back $23,809.33.
Former EEOC Chairman Pays Settlement Regarding Financial Disclosure Form
The former chairman of the Equal Employment Opportunity Commission settled a lawsuit brought by the Department of Justice for $4,000. The lawsuit alleged that the chairman did not file a financial disclosure report for the 1992 calendar year and the portion of 1993 that he was in Government service (his position terminated in April 1993).
For 1991, the chairman filed the yearly financial disclosure report required of all high ranking executive branch employees (SF 278). For 1992, however, he submitted a photocopy of the 1991 report. The Chairman acknowledged that the photocopied report submitted for the 1992 period did not reflect changes in his income. He further maintained that the inaccuracy was inadvertent and the result of a mistake made in good faith. The Office of Government Ethics noted that the chairman did not respond to four requests to file the required report over the course of two years.
Official Prosecuted for Accepting Payments for Speeches
A high-ranking official at the National Science Foundation (NSF) agreed to pay $24,900 to settle a complaint alleging that he supplemented his Federal salary by accepting payment for presenting speeches he made as the official representative of the NSF.. From 1993 to 1996 the official received $500 from Loyola University, $2,000 from Michigan State University ($600 for travel expenses), $2,000 from a research society, and $1000 from The City University of New York. He would not have been invited to speak had it not been for his Government position.
The Department of Justice charged that the NSF official failed to disclose the four honoraria payments on his annual public financial disclosure report. In addition, the NSF official allegedly failed to disclose and process reimbursements for travel paid by non-Government sources.
U.S. Government IMPACT Credit Card Abuse by Air Force Employees
Three former civilian employees from Barksdale Air Force Base, Louisiana, were charged with conspiracy to defraud the Government (18 U.S.C. 371) and conversion of U.S. property for personal use (18 U.S.C. 641).
The employees used the U.S. Government IMPAC credit cards to purchase personal items which included extensive home improvement products, and car-related materials. One of the employees certified on official documents that purchases on the IMPAC credit card were properly used by members of the reserve unit.
One of the employees was sentenced to one year and one day, and the other employees were sentenced to six months in a Federal halfway house and were required to make full restitution.
Nominee For U.S. United Nations Seat Accused of Violating Federal Lobbying Laws
President Clinton's top choice for American delegate to the United Nations agreed to pay $5,000 to the Justice Department to settle civil charges that he violated Federal lobbying laws when he contacted the American Embassy in South Korea.
The nominee was accused of violating lobbying laws because of his contacts with the Embassy in South Korea to set up appointments with the President of South Korea and other Korean officials after he resigned from the State Department. A Federal criminal statute, 18 U.S.C. 207(c), prohibits former senior Government officials from contacting employees of their former agencies on matters in which they seek official action for one year after the senior official leaves the Government.
Former Secretary of Agriculture's Top Aide is Sentenced
Former Secretary of Agriculture's Chief of Staff was sentenced to a 27 month prison term for lying about $22,000 he received from two Mississippi individuals who obtained large Government farming subsidies.
The former Agriculture employee was accused of deliberately omitting the $22,000 on his financial disclosure forms. Under the Ethics in Government Act of 1978, the employee is required to report any gifts and any outside income received. The employee alleged that $10,000 was a loan and the reminder was payment for work performed before coming to Washington. The employee had been instructed to sever all business dealings with Mississippi farmers upon accepting the Agriculture Department's Chief of Staff position.
Admiral Forced to Retire After Steering Military Contracts to Lover
A Navy admiral was formally reprimanded, fined, and forced to retire as a Captain after steering military contracts to a woman with whom he was having an affair. The officer was charged with violating the Uniform Code of Military Justice as well as other Federal ethics rules.
The Navy admiral improperly directed $150,000 worth of training contracts to the woman and also supplied nonpublic information to her for use in obtaining other Government contracts.
Smith Barney Settled Suit in Former Secretary of Agriculture Case
Smith Barney Inc., the international banking and securities firm paid over $l million to settle a lawsuit alleging that one of its employees purchased Super Bowl tickets for former Secretary of Agriculture. Smith Barney denied the allegation but agreed to a settlement to avoid protracted litigations.
The lawsuit alleged that Smith Barney tried to curry special favors from a Cabinet-level official for one of its clients, Oglethorpe Power Corporation. Oglethorpe Power Corporation wanted to avoid $286 million in prepayment penalties and wanted to refinance a $3.l billion Federal Government debt. The former Secretary of Agriculture supported the electric company's efforts, even after the Treasury Department turned it down, and even approached Vice President Gore about the matter.
Former Federal Bureau of Investigation (FBI) Agent Violates Conflict of Interest
A former FBI agent pleaded guilty to violating 18 U.S.C. 208 which prohibits Federal employees from participating in official acts in which they have a personal financial interest.
The FBI agent recommended the use of a pepper spray by the FBI and received $57,500 in payments from the pepper spray producers, Luckey Police Products (LPP), through a company owned by his wife.
The former FBI agent researched and tested the use of pepper spray for the FBI which resulted in his initial contact with LPP. At the conclusion of the agent's research, the FBI approved the use of pepper spray for its FBI agents and the products were purchased from LPP. Additionally, as a result of the FBI agent's research, other law enforcement agencies nationwide began to use the pepper spray produced by LPP.
The former FBI agency was sentenced to two months imprisonment followed by three years of supervised release.
Contractor Sentenced for Keeping Government Overpayment
The owner of Tech Data Management, a U.S. Army contracting firm, was sentenced to eight months in prison, eight months of home confinement and three years of supervised release for keeping a $584,000 overpayment by the Government. The owner never informed the Army of the overpayment and spent a portion of the money on personal items. The owner was charged with converting Government property for his own use, 18 U.S.C. 641. The contractor was also ordered to make full restitution for the overpayment.
Immigration and Naturalization (INS) Officials Investigated for Corruption
The Department of Justice investigated allegations of corruption in the INS involving several officials. In New Jersey, an INS official was indicted for accepting bribes (18 U.S.C. 201) to permit two Iraqis to enter the U.S. illegally. Another INS official sold fraudulent Honduran passports to Chinese immigrant smugglers.
Navy Employee Sentenced for Gratuity Offense
A Navy electrical foreman was sentenced for accepting $9,300 in illegal gratuities from a Government contractor. The foreman was charged with violation 18 U.S.C. 201 and was sentenced to 36 months probation and a $10,000 fine.
The electrical foreman assisted McCaffrey Electric Inc., a Government contractor, to obtain a contract with the Naval Air Warfare Center (NAWC). The foreman had authority over certain Navy contracts relating to NAWC base maintenance.
Congressional Aide Sentenced for Corrupt Activities
A former staff assistant to a U.S. Congressman was convicted of two counts of accepting gratuities (18 U.S.C. 201) and one count of devising and carrying out a scheme to defraud the Government (18 U.S.C. 1341). The aide was sentenced to 18 months imprisonment on each count followed by two years probation.
The staff assistant accepted $3,700 for assisting individuals in obtaining permanent residency status by sending endorsements on the Congressman's letterhead to the Immigration and Naturalization Service (INS). The aide was also involved in a scheme to defraud aliens seeking permanent residency. The aide told the aliens that if they were members in the Seventh Day Adventist Church, they would be eligible for permanent resident status even though the INS Special Religious Immigrant Work Program covers only church workers and their immediate families who are employed by a religious organization. The aliens were informed that for a fee, she would assist them in applying with the INS. The aide received approximately $400,000 from 1,000 aliens.
U. S. Customs Employee Conspires to Steal Records
A New Jersey U.S. Customs Service employee and her brother-in-law pleaded guilty to one count of conspiracy to commit offenses against the United States (18 U.S.C. 371).
The U.S. Customs Service employee obtained confidential criminal history and drivers' license information through access to the Treasury Enforcement Communication System and provided this information to her brother-in-law who owned a Pennsylvania-based investigative agency. The brother-in-law provided this information to his clients who requested confidential information on individuals.
The U.S. Customs' employee was sentenced to three years probation, ordered to contribute 500 hours of community service, and fined $500. The brother-in-law was sentenced to five years probation, during which time he cannot hold a private investigative license, 750 hours of community service, and fined $15,000.