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10/31/2008FEDERAL EMPLOYEE INDICTED FOR $600,000 EMBEZZLEMENTKANSAS CITY, Mo. - John F. Wood, United States Attorney for the Western District of Missouri, announced that a federal government employee was indicted by a federal grand jury today for embezzling nearly $600,000 from the government. Read the full article here

10/20/2008GSA OIG STAFF RECOGNIZED FOR EXCELLENCE

On Tuesday, October 21, 2008, awards were made at a ceremony of the President's Council on Integrity and Efficiency (PCIE) and in a separate celebration at the GSA OIG to 18 members of the GSA OIG staff recognizing excellence for their participation and service in important audit and investigations work (see link.)

 

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10/17/2008FORMER NATIONAL CENTER FOR THE EMPLOYMENT OF THE DISABLED EXECUTIVES INDICTED


GSA OIG official, Karin Eller and an FBI Agent escorting JONES to the
Federal Courthouse in El Paso, TX
ASAC Karin Eller and an FBI Agent escorting JONES to the Federal Courthouse in El Paso, TX
(picture credit: El Paso Times front page.)

Former National Center for the Employment of the Disabled executives were indicted by Federal Grand Jury.  Read about this story here. 

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10/10/2008SAFAVIAN RE-INDICTED FOR OBSTRUCTION OF JUSTICE AND FALSE STATEMENTS

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10/07/2008ARMOR HOLDINGS PRODUCTS LLC PAYS U.S. $30 MILLION FOR THE SALE OF DEFECTIVE ZYLON BULLET-PROOF VESTS

FOR IMMEDIATE RELEASE TUESDAY, OCTOBER 7, 2008 (202) 514-2007 WWW.USDOJ.GOV TDD (202) 514-1888

 

WASHINGTON - Armor Holdings Products LLC has agreed to pay the United States $30 million to resolve allegations that it violated the False Claims Act by knowingly manufacturing and selling defective Zylon bullet-proof vests, the Justice Department announced today.

The United States alleged that Armor Holdings manufactured and sold Zylon bullet-proof vests despite possessing information showing that the Zylon materials degraded quickly over time and were not suitable for ballistic use. The Armor Holdings vests were purchased by the federal government, and by various state, local and tribal law enforcement agencies that were partially reimbursed by the United States under the Justice Department?s Bulletproof Vest Partnership program.

Armor Holdings'; Zylon vests contained either woven Zylon or a Zylon laminate insert called Z Shield. The Zylon fiber used in both types of vests was manufactured by Toyobo Co. Ltd. In July 2007, the United States sued Toyobo for its manufacture and sale of Zylon to U.S.based body armor manufacturers. The Z Shield insert containing Zylon was manufactured by Honeywell Corporation. In June 2008, the United States sued Honeywell for its manufacture and sale of Z Shield to Armor Holdings.

"The Justice Department will not tolerate its first responders wearing defective bulletproof vests" said Gregory G. Katsas, the Assistant Attorney General for the Civil Division. "This settlement will help ensure that first responders receive the highest quality ballistic protection."

This settlement is part of a larger investigation of the body armor industry's use of Zylon in body armor. As part of today's agreement, Armor Holdings has pledged its cooperation in the government's ongoing investigation. The United States previously settled with three other participants in the Zylon body armor industry for more than $16 million.

The settlement with Armor Holdings was the result of an ongoing investigation by the Justice Department's Civil Division, the U.S. Attorney's Office for the District of Columbia, the General Services Administration Office of the Inspector General, the Department of Homeland Security Office of Inspector General, the Treasury Inspector General for Tax Administration, the Defense Criminal Investigative Service, the U.S. Army Criminal Investigative Command, the Air Force Office of Special Investigations, the Department of Energy Office of the Inspector General, the U.S. Agency for International Development Office of the Inspector General, the FBI and the Defense Contracting Audit Agency.

 


09/08/2008Ex-Officer Gets 4 Years in Bribery SchemeFrom the Washington Post    A former Montgomery County police officer convicted in a bribery scheme that involved $130 million in federal security contracts has been sentenced in federal court to four years in prison.

Michael B. Holiday, 51, of Silver Spring pleaded guilty last year to bribing Dessie R. Nelson of Oakland, Calif., who worked for the General Services Administration.

Holiday won $130 million in contracts for his business to provide security at Maryland and California buildings.

He was also ordered to pay $400,000 in restitution to the IRS.

Nelson admitted to accepting a shopping bag filled with $35,000 in cash, an envelope stuffed with $10,000 in cash and a $7,000 Caribbean cruise.


09/07/2008Works Progress Administration (WPA) Artwork Recovered
GSA is the custodian of the Works Progress Administration (WPA) works of art. The WPA fine arts specialists have coordinated with the Department of Justice and developed a list of lost and stolen artwork, which is maintained in a database by the FBI. Fine arts dealers are required to check this database prior to the sale of any work of art.

The OIG continues its proactive investigation by monitoring the illegal sale or possession of government-owned art. Through a search of eBay auctions for art commissioned by the WPA, two works of art were recovered since October 2006.

In the first instance, an H.L. Pierre painting titled Kansas City Waterfront, which is the property of GSA and part of the WPA project, was recovered. The seller was apprised of the WPA recovery efforts, agreed to terminate the sales auction, and maintained possession of the painting until it was returned to the control of the government. After final cataloging and appraisal, the painting was sent to the Fine Arts Division, Office of the GSA Chief Architect, to determine a suitable location for display in the Kansas City area.

In the second instance, a WPA figurine, by artist Nils Hanson, was recovered and returned to the control of the government. It was sent to the Fine Arts Division, Office of the GSA Chief Architect, for cataloging and determination of a suitable location for display.