The UC-LANL legal team review indicates that Laboratory employee Lillian P. Anaya, a procurement specialist in the Business Operations Division, may have been a victim of fraud perpetrated by a third party and at no time attempted to purchase a Mustang automobile with her LANL purchase card.
The evidence clearly shows that Anaya promptly disputed the charges related to the Mustang when they appeared on her Laboratory purchase card statement. Anaya, who has been on paid administrative leave since August 2002, is scheduled to return to work next week and will not be subject to any disciplinary action in this matter.
"Ms. Anaya cooperated fully with our investigative team and we look forward to welcoming her back to the Los Alamos team," said Interim Laboratory Director George P. "Pete" Nanos. "Using the best investigative practices available to UC and the Laboratory, the facts of the case are now better known, with every indication that no one at Los Alamos ever tried to buy a Mustang with taxpayer money.
"This is a validation of the University of California and Laboratory system for investigation of allegations of fraud," he continued.
Phone records and documents show that a telephone number mix up was the genesis of this case. In early May 2002, Anaya began a process to purchase 21 pressure transducers, devices used in scientific experiments to convert energy from pressure into an electrical signal, from a business located in Tempe, Ariz. called Fluid Conditioning Company.
Unbeknownst to Anaya, when Fluid Conditioning relocated from Phoenix to Tempe, the telephone company transferred its phone number to a separate firm that deals in performance Mustang automobiles.
When Anaya called Fluid Conditioning Company to place the equipment order she did not realize she was actually speaking to personnel at the performance Mustang company. The Mustang company, through a series of phone calls and faxes, subsequently took the order for pressure transducers and using the Laboratory purchase card number supplied by Anaya processed charges for a Mustang automobile and accessories, according to investigators.
Records further show that immediately upon receiving her purchase card statement that contained the $20,895 charge for an automobile from the Mustang company instead of transducers from Fluid Conditioning, Anaya began the process for disputing the charge. Bank of America, the institution that had the Laboratory's purchase card contract, promptly reversed the charge, so at no time was taxpayer money involved.
The University and the Laboratory have forwarded their findings to law enforcement and urged further investigation into the possible fraud committed against the Laboratory. The University has also shared its findings with the federal agencies investigating the Mustang purchase; however, those agencies have indicated to the University that they cannot share the facts underlying their own investigations.
"With this case now hopefully behind us, our focus must continue to be on strengthening all aspects of the laboratory's business and administrative practices and to restoring the American public's confidence in Los Alamos and the University's management of it," said Bruce Darling, University of California Interim Vice President for Laboratory Management.
Editor's Note: A conference call media briefing is scheduled for 2 p.m. MDT, June 26, that will include UC deputy general counsel John F. Lundberg and Richard Marquez, LANL Associate Director for Administration. For information on joining the media conference call contact LANL public affairs at (505) 667-7000.
Los Alamos National Laboratory, a multidisciplinary research institution engaged in strategic science on behalf of national security, is operated by Los Alamos National Security, LLC, a team composed of Bechtel National, the University of California, The Babcock & Wilcox Company, and Washington Group International for the Department of Energy's National Nuclear Security Administration.
Los Alamos enhances national security by ensuring the safety and reliability of the U.S. nuclear stockpile, developing technologies to reduce threats from weapons of mass destruction, and solving problems related to energy, environment, infrastructure, health, and global security concerns.