FORMER TOBYHANNA ARMY DEPOT EMPLOYEE PLEADS GUILTY
TO CORRUPTION CHARGES

Martin C. Carlson, Acting United States Attorney for the Middle District of Pennsylvania, announced today that a former civilian employee at the Tobyhanna Army Depot has pleaded guilty to charges that he accepted illegal payments from a foreign defense contractor and engaged in unlawful money laundering activities.

RICHARD C. FEOLA, age 61, formerly of Dunmore, Pennsylvania, was indicted last November and charged with 13 counts of Unlawful Gratuities, 18 U.S.C. § 201(c)(1); 13 counts of Laundering Monetary Instruments, 18 U.S.C. § 1956; and 1 count of Criminal Forfeiture, 18 U.S.C. § 982. Today, in a proceeding before the Honorable James M. Munley in U.S. District Court, Scranton, FEOLA pleaded guilty to one count of Illegal Gratuities, one count of Money Laundering, and the Forfeiture count.

According to the Indictment, FEOLA was an “Information Technology Specialist” at the Depot who’s official duties included the preparation of computer equipment bid specifications. On at least eight occasions, FEOLA prepared specifications seeking the purchase of computer equipment from Thruput LTD, a computer equipment supply company owned by one Michael CLERY in Bristol, England. As a result, the Army awarded eight contracts totaling $308,595 to Thruput between July 2000 and August 2005. After the first two Army contracts were awarded, CLERY wired $5,957 from a bank account in England to an account FEOLA controlled in the United States. Over the course of the next six years CLERY wired additional funds totaling $83,332 to FEOLA.

The Unlawful Gratuity offense FEOLA pleaded guilty to is punishable by up to two years’ imprisonment and a $250,000 fine. The Money Laundering count is punishable by up to 20 years’ imprisonment and $250,000 fine. Pleading to the Forfeiture Count obligates FEOLA to forfeit the sum of $62,650 to the government.

Michael CLERY was named as a co-defendant in the same Indictment with FEOLA and is also charged with 13 Illegal Gratuity and 13 Money Laundering counts. However, CLERY, a British Citizen, has not yet been arrested on the charges.

Carlson noted the case was investigated by the Army’s Criminal Investigation Command and by the Department of Defense’s Inspector General’s Office. The case is being prosecuted by Assistant U.S. Attorney Kim Douglas Daniel.

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