Bribery, Fraud, & Theft. MISUSE OF GOV RESOURCES AND PERSONNEL

The following document is down loadable here

Who said anything about Integrity?  We don’t need no stinkin’ Integrity here! 
No wonder the world feels the way they do about the US. 

These stories are not just about some Airman Basic taking a few MRE’s.  Were talking top brass from all the branches.

Enjoy
DallasGoldBug
 

Encyclopedia of Ethical Failures: 2008 Updates
(From DoD IG)

MISUSE OF GOVERNMENT RESOURCES AND PERSONNEL

Majorly Out To Lunch
An Army Major was scheduled to work 0730 to 1600 hours.  Instead, he would show up as late as 1030 and leave as early as 1200.  Somehow, during his short stay at the office he also managed to take “excessive lunch time.”  He was subjected to counseling for his time and attendance violations.

Prognosis for Army Doctor Does Not Look Good
A civilian doctor working at an Army clinic was caught ordering medication and tests for herself at the clinic even though she was not entitled to medical care by the military.  She had also been seen by occupational health providers at the clinic about 20 times.  This doctor receiving unauthorized medical care was suspended for two weeks without pay and retrained on her eligibility to receive medical services.  

At Today’s Gas Prices, Better Refill the Government’s Tank!
A group of interns used a Government rental vehicle to attend a 5-day Defense Acquisition University (DAU) class in Alabama.  However, after the class was over they decided to drive to Nashville for a little weekend vacation, ultimately dropping the car off with an empty tank of gas.  They charged the Government an extra two days for the weekend car rental and the $5/gallon gas refill.  They were also improperly paid for an extra day of per diem during their boondoggle to Music City.  The original vouchers claimed days that were not part of the interns’ official TDY, but were subsequently corrected.  The intern group was counseled, received training on filing travel vouchers, and was made to contact DFAS regarding reimbursement to the Government for the improper expenditures.  

A Swing and a Miss for Senior Officers Using Government Funds on Golf Outing
Four senior officials, including two Air Force Generals, a Marine General, and a Navy Admiral, with staff personnel extended their official TDY by an extra day in order to attend a golf outing following a formal conference in Tokyo.  They utilized Government transportation and received per diem for the tournament. There were no business events that day, and the all-day golf event was attended by less than half of the conference participants.  Attendance at the golf event, costing the Government approximately an additional $3,000, could not reasonably be considered to be official Government business.  Golf foursomes do not provide the opportunity to dialogue with a large or diverse group of people and thus do not greatly foster communication between conference participants.  The Federal Joint Travel Regulations require that official travel only be authorized as necessary “to accomplish the mission of the Government effectively and economically.”  The golf did not further any legitimate Government purpose, nor was it an economical choice.  The senior officials violated the Standards of Ethical Conduct for Employees of the Executive Branch (5 C.F.R. Part 2635.704 and 2635.705) by misusing Government property and time.  They were directed to reimburse the Government for both the lodging and per diem costs incurred due to the golf outing.

Be Careful from Here Onward
Seven senior military officers, including four Generals, were found to have misused their positions, improperly implying DoD endorsement or support of a Non-Federal Entity while appearing in a promotional video for the Christian Embassy.  A Pentagon Chaplain arranged for Christian Embassy employees to obtain Pentagon building passes for filming.  The video showed interviews conducted at recognizable Pentagon locations, featuring the senior officers in uniform and displaying their ranks as they discussed their Christian faith.  Two SES Government employees who appeared in the video without title and whose comments did not create the appearance of DoD sanction were found to have properly participated in their personal capacity.  The military officers, however, violated Paragraph 3-209 of DoD 5500.7-R, Joint Ethics Regulation which prohibits actions by employees suggesting DoD endorsement of Non-Federal Entities, and C.F.R. 2635.702 which prohibits using one’s public office for private endorsement.

DVD Bootleggers MIA During Government Work Hours
A Federal employee used his Government computer to make illegal copies of commercial DVDs in violation of copyright laws.  He and another employee also used their Government computers and duty time to watch the movies.  The other employee took lunches lasting up to three hours in order to watch the DVDs and take naps.  Initially the employees’ supervisors signed off on this behavior, even assigning extra work to others to make up for the employees’ time wasted napping and movie watching.  The employee who copied the DVDs received a written reprimand.  The supervisor received an oral admonishment for failing to address the misconduct, and another employee received a Letter of Counseling for knowingly accepting a pirated DVD.  In a similar case, a civilian employee working for the U.S. Army in Germany was involved in selling pirated DVDs.  He used the profits from his illegal operation to buy vacation homes and luxury cars and to pay for frequent European ski vacations.  He devoted some of his duty time to the marketing and selling of the bootleg videos, including taking payments while on the job.  Even though the employee had left Federal service by the time the accusations against him were substantiated, administrative action was taken to bar him from US Army Europe installations.

Colonel Finds It’s Too Late to Turn Back Time on Unethical Request
An Army Colonel was scheduled to go TDY and asked one of her contract employees to make a reservation for her mother on the same flight.  When she was told that such action would be illegal, she responded that it was “alright” and that she had asked him as a “personal favor.”  After even more people counseled her on the illegality of her actions, the Colonel attempted to stop the employee from making the flight reservation, but it was too late.  She was found to have violated Paragraphs 2-301 and 3-305 of DoD 5500.7-R, Joint Ethics Regulation, which prohibit use of Federal Government resources, including personnel and equipment, for other than official purposes.

All-Expenses Paid Bachelor Pad with Maid Service Included?
A Lieutenant Commander working as the Naval Station Great Lakes Bachelor Housing Officer misused Government resources when he lived in the quarters without cost and received free housekeeping and amenities.  He was charged on three counts under the Uniform Code of Military Justice (Articles 81, 92, and 134) and issued a Letter of Reprimand as a form of Non-Judicial Punishment.  A civilian Government official who was aware of the Lieutenant Commander’s illegal conduct but failed to report it was also issued a Letter of Reprimand for violating the Basic Obligation of Public Service requiring that he disclose any known fraud, waste, abuse, and corruption (C.F.R. 2635.101(b)(11)).

Out-of-Office Reply: Out sick, can be reached at bowling alley.
A GS-14 Director, within an Army Command, failed to show up to work for at least three months.  He complained of needing a double hip replacement but never submitted sick leave.  Though he claimed to work from home, he was never approved for a work-at-home program.  People reported seeing him around the community and he was spotted at the PX, the Commissary, and even the bowling alley!  The man received a verbal reprimand and was counseled on appropriate leave request and approval procedures.

Pin-Heads Ignore Government Purchase Card Procedures
The Manager of an Army Bowling Pro Shop received factory rebates for the bowling products he purchased for the shop using a Government credit card.  Government Purchase Card procedures stipulate that cardholders should take advantage of any rebates offered, whether cash or merchandise, and that manufacturer and retailer rebates should be made payable to the appropriate Government agency.  The Manager purchased property for the shop, a MWR entity, on a Government contract; therefore, the rebates were the property of DoD and should have been turned in to the agency’s financial officer.  Instead, the Manager kept the rebates, which were in the form of Best Buy gift cards, for his personal use.  He was even heard bragging about all of the free stuff he would be able to buy.  Furthermore, he improperly lent his Government impact card to another civilian bowling facility employee in violation of Government Purchase Card standard operating procedure which requires that only the named individual on the card may use it for official purposes in compliance with agency accounts.  This employee kept the cash and gift card rebates he received from using the Manager’s card, failing to provide them to the MWR finance officer and resulting in a $230 cost loss for the Government.  These actions constitute larceny and improper use of a Government purchase card.  The Manager resigned in lieu of further disciplinary action.  The employee also resigned.

Wanted: Employee Who Doesn’t Skip Meetings to Interview with Other Companies
An Army Brigadier General participated personally and substantially as an advocate and approval authority in the effort to increase funding on a task order with a Government contractor even while actively seeking employment with that company.  His efforts did not rise to the level of “negotiating” employment so he did not violate the criminal prohibition of 18 U.S.C. §208, but was still in violation of C.F.R. 2635.604 when he took official action on behalf of a company with which he was seeking employment instead of disqualifying himself from the particular matter.  He also extended official travel time and claimed unauthorized travel expenses in order to go to job interviews and participate in other job seeking activities to the point of actually excusing himself from official meetings.  Finally, he charged unauthorized personal phone calls to the Government and ordered subordinates to run personal errands for him, including picking up his dry cleaning, driving him to the barber shop, and putting the license plates on his personal car (also directing them to use an official Government vehicle for these purposes).  The General’s behavior violated the Joint Ethics Regulation because he used Federal personnel, equipment, and duty time to conduct personal business.  His official participation in a particular matter on behalf of a company with which he was seeking employment violated conflict of interest law.  His other activities amounted to misuse of Government resources (his subordinates’ time and the Government car) and improper gift acceptance (due to a failure to reimburse subordinates for expenditures such as mileage used when performing his personal services).  As if that was not enough of an ethical rap sheet, he violated DoD Directive 7000.14-R when he decided to charge at least 15 of his TDY transactions to his personal credit card instead of his Government travel card so that he could receive bonus point or air miles on the card.  The General was subject to Article 15 proceedings under the Uniform Code of Military Justice, fined $5,000, and directed to reimburse the Government $5,300 for the improper cell phone use and overpayment of TDY expenses.  He was allowed to retire at his current grade, O-7.

Serving at Volleyball Tournament Was Not Permitted
A Marine Corps Commanding Officer, O-6, directed or requested that his subordinates use their official duty time to perform manual labor and other activities in support of a private organization in an attempt to fundraise for the upcoming Marine Corps Ball.  They performed the work in exchange for money and command endorsement from the organization.  They ultimately received $48,600 in compensation from the outside organization for performance of their official duties, in violation of 18 U.S.C. §209 and Paragraph 3-205 of DoD 5500.7-R, the Joint Ethics Regulation, which prohibits an employee from receiving supplemental salary from a non-Federal source for the performance of DoD duties.  The Commanding Officer was disciplined and directed to transfer all of the money to the U.S. Treasury.

Cyber-Savy Teacher Learns a Lesson
A civilian teacher employed with DoD in Japan was caught using his Government computer to send frequent messages on MySpace, Yahoo Chat, and MSN chat during duty hours.  He also used the computer to both view and send pornographic material.  Students reported that instead of teaching classes he spent most of his time chatting with his girlfriend and family in the United States.  Adverse Personnel Action was taken against the teacher and he resigned.

Not a Liar, But the Army Still Can’t Train Your Fiancée’s Son to Fight Fire
The Fire Chief at an army installation did not have enough students to fill a pre-paid, DoD-funded Airfield Rescue Fire Fighter Class so he sent his fiancée’s son to the training to fill one of the unused seats.  Although he was not a DoD employee and did not possess any previous firefighter training or experience, he was issued Depot firefighting equipment and sent to the training.  This action posed a considerable safety risk to all involved and violated the class’s safety requirements.  The Fire Chief was not suspected of fraud, only poor judgment.  Even though sending the boy did not involve the expenditure of additional funds, he still violated Paragraph 2-301 of DoD 5500.7-R, the Joint Ethics Regulation, paragraph 2-301, in his misuse of Government resources by issuing the boy the Government equipment.  The Fire Chief was issued a written reprimand to be made a matter of record in his official personnel folder for a period not to exceed two years from the date of receipt.

Staff Sergeant Tricks Out His Ride on the Government’s Dime
An Army E-6 assigned to a National Guard maintenance shop improperly worked on civilian vehicles at the shop and removed car parts for his personal use.  He installed truck tires, two solargizers and other accessories on his personal vehicle and used his Government credit card to buy a diamond plate fuel tank and install it in his own truck while putting a regular white fuel tank in the military truck he was working on.  The Staff Sergeant not only took a Government vehicle for his personal use, but he even took a shed from the shop and moved it to his home.  He was also suspected of using his Government credit card to pay for gas for his personal vehicles.  The Staff Sergeant was charged with larceny and wrongful appropriation under the appropriate State Code of Military Justice and the Government was able to recover $8,800 in property.

FRAUD

Imaginary Ball and Chain Drags Staff Sergeants Down
An Army Staff Sergeant stationed at Ft. Bragg, North Carolina continued to receive Basic Allowance for Housing (BAH) at the married rate even after he was divorced from his wife.  He knowingly and willfully failed to submit documentation to reflect this change, thus receiving more money than he was entitled to and therefore committing fraud and larceny.  The Staff Sergeant was charged with larceny under the Uniform Code of Military Justice and found guilty by General Court Martial.  He was sentenced to five months in confinement, forfeiture of $5,000 and a reduction in grade from Staff Sergeant (E-6) to Private First Class (E-3).  In a similar case, a Staff Sergeant at U.S. Army CENTCOM was caught illegally receiving BAH at the higher married rate when he was actually single.  The soldier submitted a false marriage license, ultimately receiving $15,100 in Basic Allowance for Housing and Family Separation Allowance to which he was not entitled.  His “wife” also fraudulently received $13,200 in Tricare healthcare benefits.  The relationship must have gone sour though, because she ended up turning him in to military investigators.  After such a betrayal, one can only assume he will now be filing for a fake divorce.

(From Navy GC AIO)

THEFT

Electronics Scam Lands Sailor in Hot Water
An active duty Navy sailor and authorized Government purchase card user noticed one day that some of the items she had purchased for her Command were missing from the warehouse.  She decided to go ahead and repurchase the items to “prevent any of her shipmates from getting in trouble for stealing Government property.”  This incident seemed to give the sailor an idea because about two years later she decided to try to use her Government purchase card to conduct widespread theft.  Ever cautious, she first conducted a few “test runs” by purchasing items for her personal use on her Government card.  The misuse went undetected so the sailor joined with a coconspirator to discuss even bigger plans.  They decided to buy laptop computers and plasma televisions on the sailor’s Government card and to re-sell them for personal profit.  Navy auditors discovered the scheme and determined that the sailor and her coconspirator had defrauded the Government out of $363,243.  The sailor had used her Government card to purchase 162 notebook computers, 65 big screen televisions, 22 digital cameras, GPS devices, camcorders, computer monitors, and home theater systems.  Her efforts to prevent her shipmates from getting into trouble and her subsequent emulation of the local cut-rate electronic retailer led the sailor to plead guilty to one count of theft of Government property in violation of 18 U.S.C. §641.  She is scheduled for sentencing in August, 2008.

BRIBERY

Department Employee Works to the Public Detriment
A civilian Engineering Technician assigned to the Public Works Department at Naval Air Station, Corpus Christi, TX recommended Contract Construction and Fence Co. for a $153,000 contract.  But behind the scenes, the company had first agreed to pay the Government employee $5,000 in exchange for the recommendation, per the employee’s request.  The technician admitted to accepting the bribe in return for his official action that resulted in the contract award.  The Navy debarred the civilian employee for three years, and he left Federal service.

FRAUD

Handling of Service Members’ Injury Claims Wounds Government Financially
A Navy civilian Medicare claims examiner was employed to represent Government interests in the settlement of Medical Care Recovery Act (MCRA) claims.  Her job entailed regularly negotiating with insurance companies and injured military personnel in order to recover Government expenditures on medical care for service members and their dependents who were injured due to the acts of uninsured third parties.  Although the Navy has authority to waive its claims on behalf of injured service members against insurance companies, the examiner orchestrated a scheme in which she used her position and authority to waive claims and to fraudulently obtain money for herself that was owed to the Government.  In one case, the examiner handled the claim for a Petty Officer who had been injured in a motorcycle accident.  She told the service member that she could increase the amount of his settlement if he agreed to split the amount with her.  When he agreed, the examiner notified the insurance company that the Navy was waiving its MRCA claim.  When the company sent the Petty Officer a $6,000 check, he sent her $3,000 cash just as she had directed.  It turned out that the Petty Officer had been working with law enforcement authorities all along.  The U.S. Attorney prosecuted the examiner and obtained a conviction for one count of Mail Fraud.  She was sentenced to two months in prison, two years of probation, a $100 special assessment, and was debarred by the Navy for three years.

Invoices Submitted on Behalf of MakeBelieveCompany, Inc.
A civilian employee and Government purchase card holder working at the Naval Surface Warfare Center (NSWC) in Maryland conspired with an outside vendor to create fraudulent invoices in the name of fictitious companies such as Greenway Supply, Government Supply, and Aerospace Technologies.  The invoices fraudulently showed that these imaginary companies had provided goods and services to NSWC when in fact no products or services were ever provided.  The Government employee used his purchase card to pay for hundreds of such invoices, all in amounts of less than $2,500 so as to avoid attracting too much scrutiny.  When NSWC took away the employee’s purchase card, the vendor continued to submit the false invoices in cooperation with a second employee.  Ultimately, the vendor made between $200,000 and $400,000 in profit from the conspiracy.  All three people involved were guilty of making false and fraudulent statements to the Government and embezzling money belonging to NSWC.  The vendor pled guilty to one count of conspiracy to defraud the Government, 18 U.S.C. §371.  The Navy debarred the vendor and both employees for three years.

Marine Corps Say Goodbye to Officers who Schemed with Thai Vendors
Three U.S. Marine Corps Forces Pacific, Joint U.S. Military Group, Thailand (JUSMAGTHAI) officers were caught receiving bribes and kickbacks from a Thai vendor.  A Naval Criminal Investigative Service investigation revealed that a Marine Corps Major, either directly or through his wife, accepted approximately $100,000 in gifts from a Thai vendor, to include a truck and a loan for a house.  The Major continued to engage in business with the vendor and awarded him contracts, but did not disclose his personal financial conflict of interest to his agency designee as mandated by 18 U.S.C. §208.  He also passed inside information to the vendor, allowing her to increase her bid while still ensuring she was the lowest bidder and therefore increasing her profit margin.  He was also charged with maintaining a sexual relationship with a woman who was not his wife, which is illegal under the Uniform Code of Military Justice.  Another Marine Corps Major received gifts, including free hotel rooms, from a prohibited source in violation of 10 U.S.C. section 892 and section 933.  Additionally, a third Marine Corps Major also worked with the vendor to defraud the Government.  The Major, taking advantage of his position as the first person in the logistics chain to come into contact with goods and services provided by contractors, signed receipts for delivery of purchase orders even though the vendor had only delivered incomplete shipments.  The Government was nonetheless billed the cost of full shipment, while the conspiring parties split the profits from these “ghost shipments.”  The Major signed orders for at least five ghost shipments and received $2,324 in bribes for his participation.  All three Majors were debarred from Government contracting by the Navy Acquisition Integrity Office.  Furthermore, they were all charged under the Uniform Code of Military Justice.  The first Major was dismissed from active duty, sentenced to four years in confinement and a $25,000 fine.  The second Major received a Punitive Letter of Reprimand and was subjected to a $3,060 forfeiture of pay.  The third Major was discharged and sent to spend six months in the brig.