USDOJ: Government Contractor Indicted for Bribing Public Official at @USAGM

 

Via DOJ:

A federal grand jury in the Eastern District of Virginia returned an indictment charging a North Carolina man with engaging in a bribery and fraud scheme with a former contracting officer for the Broadcasting Board of Governors (BBG) (now known as the U.S. Agency for Global Media).

According to court documents, William F. Snow, 70, of Jamestown, worked for a government contracting firm that previously provided professional staffing services to BBG. Between late 2014 and late 2016, Snow, in addition to a BBG contracting officer and others, allegedly agreed to hire and pay the contracting officer’s relative for a job involving minimal work and which resulted in payments to the relative that totaled more than $68,000. In exchange, the BBG contracting officer took official actions that benefitted Snow, the contracting firm, and another executive, Rita Starliper, who previously pleaded guilty for her involvement in the scheme. In particular, the contracting officer took official action and provided preferential treatment that included the awarding of a professional staffing contract to the contracting firm that was worth millions of dollars and the steering of the procurement process to benefit Snow, Starliper, and the contracting firm.

Snow is charged with one count of conspiracy to commit bribery and honest services mail fraud, one count of bribery, and three counts of honest services mail fraud. The defendant will make his initial court appearance on Dec. 28. If convicted, Snow faces a maximum penalty of five years in prison for conspiracy to commit bribery and honest services mail fraud, fifteen years in prison for bribery, and twenty years in prison for each count of honest services mail fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jessica D. Aber of the Eastern District of Virginia; Special Agent in Charge Elisabeth Kaminsky of the Office of Inspector General for the Department of State; and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.

The Office of Inspector General for the Department of State and the FBI are investigating the case.

Assistant U.S. Attorney Heidi Boutros Gesch of the Eastern District of Virginia and Senior Litigation Counsel Edward P. Sullivan, and Trial Attorney Jordan Dickson of the Justice Department’s Public Integrity Section are prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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First Extradition From Cameroon to US: Fugitive to Serve an 80-Year Prison Sentence

 

Via USDOJ:

In the first extradition from the Republic of Cameroon to the United States, a Texas man was extradited to Houston on Friday to serve an 80-year prison sentence he received in absentia four years ago after he pleaded guilty in two separate cases to conspiracy, health care fraud, money laundering, and tax offenses.

According to court documents, in November 2016, Ebong Aloysius Tilong, 57, of Sugar Land, Texas, and his wife, Marie Neba, went to trial on the conspiracy, health care fraud, and money laundering charges. The trial evidence and court documents showed that between 2006 and 2015, Tilong, Neba, and their co-conspirators used Tilong and Neba’s company, Fiango Home Healthcare Inc. (Fiango), to corruptly obtain more than $13 million by submitting false and fraudulent claims to Medicare for home health care services that Fiango’s patients did not need or receive. The trial evidence and court documents also showed that Tilong and Neba paid illegal kickbacks to patient recruiters to refer patients to Fiango, and that Tilong falsified and directed others to falsify medical records to make it appear as though Fiango’s patients met the Medicare qualifications for home health care. Additional evidence demonstrated that Tilong attempted to destroy evidence and blackmail and suborn perjury from witnesses. After the first week of trial, Tilong pleaded guilty to one count of conspiracy to commit health care fraud, three counts of health care fraud, one count of conspiracy to pay and receive health care kickbacks, three counts of payment and receipt of health care kickbacks, and one count of conspiracy to launder monetary instruments.

In June 2017, Tilong pleaded guilty in a separate case to two counts of filing fraudulent tax returns. In connection with this guilty plea, Tilong admitted that he created a shell company called Quality Therapy Services (QTS) to limit the amount of tax that he paid to the IRS on the proceeds that he and his co-conspirators stole from Medicare. According to Tilong’s plea agreement, in 2013 and 2014, Tilong wrote almost $1 million in checks from Fiango to QTS for physical-therapy services that QTS never provided to Fiango’s patients and deducted as business expenses. Tilong admitted that his tax fraud scheme caused the IRS a tax loss of approximately $344,452.

In August 2017, Neba was sentenced to 75 years in prison the Medicare fraud scheme at Fiango. The U.S. District Court scheduled Tilong’s sentencing for Oct. 13, 2017, but court records show that on the morning of his sentencing hearing, Tilong removed an ankle bracelet monitoring his location and failed to respond to phone calls from, or appear in, the U.S. District Court for his sentencing. On Dec. 8, 2017, the U.S. District Court sentenced Tilong in absentia to 80 years in prison for his role in the Medicare and tax fraud schemes.
[…]

In September 2021, the Republic of Cameroon President Paul Biya signed a decree ordering Tilong’s removal to the United States.

On Dec. 10, 2021, U.S. Marshals escorted Tilong from Cameroon to the United States.

The United States is grateful to the Government of Cameroon for its cooperation and support of this extradition request.

Read more:

US Embassy Manila: USINDOPACOM Employee Pleads Guilty For Removal of Classified Material

 

Via USDOJ:  Woman Pleads Guilty to Unauthorized Removal and Retention of Classified Material

A Hawaii woman pleaded guilty today to one count of knowingly removing classified information concerning the national defense or foreign relations of the United States and retaining it at an unauthorized location.

According to court documents, Asia Janay Lavarello, 31, of Honolulu, admitted to having removed and retained numerous classified documents, writings and notes relating to the national defense or foreign relations of the United States without authority. While working as an Executive Assistant for the U.S. Indo-Pacific Command in Hawaii, Lavarello accepted a temporary assignment working at the U.S. Embassy in the Philippines. There, she had access to classified computers and documents, and attended classified meetings as part of her official duties. Court documents list several specific instances in which Lavarello mishandled classified material of the United States.

According to her plea, on March 20, 2020, Lavarello removed classified documents from the U.S. Embassy in Manila. She took the classified documents to her hotel room where she hosted a dinner party later that evening. Among the guests were two foreign nationals. During the party, a co-worker discovered the documents, which included documents classified at the SECRET level. Lavarello’s temporary assignment in the Philippines was ultimately terminated due to her mishandling of SECRET classified documents.

After Lavarello returned to Hawaii, investigators executed a search warrant at her government workplace. In her desk, investigators found a notebook containing Lavarello’s handwritten notes of meetings she attended while working at the U.S. Embassy in Manila. The notes contained facts and information classified at the CONFIDENTIAL and SECRET levels. Investigators determined that Lavarello personally transported the documents to Hawaii, unsecured, and kept the classified notebook at an unsecure location until at least April 13, 2020.

Investigators also discovered that Lavarello included information from the classified notebook in a Jan. 16, 2020, email from her personal Gmail account to her unclassified U.S. Government email account. The information she transmitted over unsecure networks was classified at the SECRET level.

Lavarello pleaded guilty to the charge of unauthorized removal and retention of classified documents or material and faces up to five years in prison, three years of supervised release and a fine of $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI and Naval Criminal Investigative Service (NCIS) are investigating the case.

Assistant U.S. Attorney Mohammed Khatib of the District of Hawaii and Trial Attorney Stephen Marzen of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

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State/M Brian Bulatao Suspends All @StateDept Diversity and Inclusion Training Programs

 

On October 23, the State Department released an ALDAC cable on the “Department Implementation of Executive Order on Race and Sex Stereotyping.” The cable came with a message from the Under Secretary for Management and Pompeo BFF Brian Bulatao. 
The guidance says that  starting Friday, October 23, 2020, the Department is temporarily pausing all training programs related to diversity and inclusion in accordance with Executive Order (E.O.) 13950 of September 22, 2020 on Combating Race and Sex Stereotyping. 
The president, who is undoubtably, the top promoter of divisiveness in this country has issued another dumpster fire here: Executive Order on Combating Race and Sex Stereotyping, September 22, 2020.
The State Department cable says that the “pause” will allow time for the Department and Office of Personnel Management (OPM) to review program content.  “The Department is in regular communication with the Office of Management and Budget (OMB) and OPM to discuss the effective implementation of E.O. 13950 and to minimize the time period needed for review to ensure approved programs can resume in a timely fashion.” 
Apparently, the Foreign Service Institute (FSI) will “collect relevant training materials” for submission to OPM’s review “in a complete, all-inclusive submission. ” 
What the heck is that? They think FSI is hiding some of their um, training?
The cable also says that the “Department continues to welcome input from employees on how to improve diversity and inclusion efforts, including from leadership, existing and emerging bureau and post Diversity and Inclusion Councils, and Employee Affinity Groups.”
Wait … emerging bureau at State? Hmmn … somebody has a pet new bureau over there, huh?
Bulatao’s message says that the Department “leadership” will be requesting in a separate cable “all bureaus and overseas missions to review and confirm that any materials related to diversity and inclusion courses or programs are consistent with the Executive Order.”
The OMB Memorandum says in part “Agency employees and contractors are not to engage in divisive training of Federal workers. Noncompliance by continuing with prohibited training will result in consequences, which may include adverse action for Federal employees who violate the Order.”
Agencies must:
“Review these trainings to determine whether they teach, advocate, or promote the divisive concepts specified in the Executive Order on Combating Race and Sex Stereotyping ( e.g., that the United States is fundamentally racist or sexist or that an individual, by virtue of his or her race or sex, is inherently racist, sexist, or oppressive). Reviews of specific training curriculum materials can be supplemented by a broader keyword search of agency financial data and procurements for terms including, but not limited to:
      • “critical race theory,”
      • “white privilege,”
      • “intersectionality,”
      • “systemic racism,”
      • positionality,”
      • “racial humility,”
      • “unconscious bias”
When used in the context of diversity training, these terms may help to identify the type of training prohibited by the E.O. Searching for these key words without additional review does not satisfy the review requirements of the E.O.”
And contractors?
“Contractors who are found to have provided a training for agency employees that teaches, advocates, or promotes the divisive concepts specified in the E.O. in violation of the applicable contract will be considered for suspension and debarment procedures consistent with the E.O. and in accordance with the procedures set forth in Part 9 of the Federal Acquisition Regulation.”
See OPM – M-20-37 Ending Employee Trainings that Use Divisive Propaganda to Undermine the Principle of Fair and Equal Treatment for All (September 28, 2020) (4 Pages, 4,370 KB).
Holymoly macaroni!
If  the Federal government is about to revert to just calling ’em pranks, why should training be needed, luv?
Remember that time when FBI Agents Hung A Noose Over an African American DS Agent’s Workspace Twice, and the FBI Called It “Pranks”?

Art Dealer Inigo Philbrick Expelled From Vanuatu After US Embassy Papua New Guinea’s Request

 

Via USDOJ:
Inigo Philbrick Defrauded Investors and Lenders Out Of More Than $20 Million In Connection With Works by Notable Contemporary Artists

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint in Manhattan federal court charging INIGO PHILBRICK, an art dealer specializing in post-war and contemporary fine art, with galleries in London, United Kingdom, and Miami, Florida, with engaging in a multi-year scheme to defraud various individuals and entities in order to finance his art business.  In total, PHILBRICK allegedly fraudulently obtained more than $20 million as a result of the scheme.

Federal law enforcement agents took PHILBRICK into custody yesterday in Vanuatu, after Vanuatu authorities expelled PHILBRICK from Vanuatu at the request of the U.S. Embassy in Papua New Guinea in light of the charges in the Complaint.  PHILBRICK was then transported to Guam, where he is expected to be presented in federal court on June 15, 2020.     

U.S. Attorney Geoffrey S. Berman said:  “As alleged, Inigo Philbrick was a serial swindler who misled art collectors, investors, and lenders out of more than $20 million.  You can’t sell more than 100 percent ownership in a single piece of art, which Philbrick allegedly did, among other scams.  When his schemes began to unravel, Philbrick allegedly fled the country.  Now he is in U.S. custody and facing justice.”

FBI Assistant Director William F. Sweeney Jr. said:  “Mr. Philbrick allegedly sought out high-dollar art investors, sold pieces he didn’t own, and played games with millions of dollars in other people’s money.  The game ended when investors began wondering where their money went.  Hats off to the FBI NY Joint Major Theft Task Force/Art Crime Team who worked diligently to track down Mr. Philbrick and bring him back to the U.S., where, if convicted, he might have to trade in his jet-set life for a drab federal prison cell.”
[…]
PHILBRICK, 33, a U.S. citizen previously residing in London, United Kingdom, and a fugitive since October 2019, was charged in the Complaint with one count of wire fraud and one count of aggravated identity theft.  The wire fraud charge carries a maximum prison term of 20 years.  The aggravated identity theft charge carries a mandatory sentence of two years in prison.
[…]
To report information related to this case, please contact the FBI’s Art Crime Team at NYArtCrime@fbi.gov.

The allegations in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Read the full statement here.
The Complaint was unsealed on June 12 in Manhattan federal court.

 

DynCorp Pays $1.5M to Resolve Kickback Allegations in Baghdad, Iraq

 

This is a follow-up to a 2017 case about a former government contractor sentenced to four years in prison for his role in a government contract kickback scheme that caused a loss of more than $3.4 million to the U.S. Department of State.

According to court documents, Wesley Aaron Struble, 49, a U.S. citizen of Batangas, Philippines, engaged in a conspiracy to violate the Anti-Kickback Act in 2011 and 2012 while employed in Iraq as a government contractor. Initially employed by a business identified in court documents as Company B, Struble learned that another business, identified in court documents as Company A, was seeking a lease of real property for use related to a U.S. Department of State contract. Struble knew that Company B was paying approximately $124,000 per month to a third business, identified in court documents as Company C, for a lease of real property. According to court documents, Struble became a manager for Company A, and together with another manager for Company A, engaged in a conspiracy with associates of Company C to make the lease of property available to Company A at an inflated rate of $665,000 per month.

(See That time when a real property lease in Iraq jumped from $124,000/mo to $665,000/mo).
Last month, USDOJ announced that DynCorp Pays $1.5M to Resolve Kickback Allegations:

ALEXANDRIA, Va. – DynCorp International, LLC (DynCorp), located in McLean, has agreed to pay $1.5 million to settle civil fraud allegations involving two former DynCorp officials, Wesley Aaron Struble and Jose Rivera, who solicited and accepted kickbacks from an Iraqi subcontractor in connection with DynCorp’s lease of property for its operations in Baghdad, Iraq on behalf of the U.S. Department of State.

Struble and Rivera previously pleaded guilty in the Eastern District of Virginia to violating the Anti-Kickback Act for their role in soliciting and accepting at least $390,000 in cash kickbacks from the Al-Qarat Company in exchange for influencing DynCorp’s lease of property in Baghdad at a lease amount higher than the previous lease. The lease costs were included with services for international civilian policing that DynCorp billed under a U.S. Department of State contract in 2011 and 2012.

The settlement resolves the alleged liability of DynCorp for violation of civil penalties under the Anti-Kickback Act and the civil False Claims Act arising out of Struble’s and Rivera’s fraudulent conduct while employed by DynCorp.

The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Department of State Office of Inspector General, and the Federal Bureau of Investigation.

The matter was investigated by Assistant U.S. Attorney Christine Roushdy. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.

The original announcement is available here.

Libyan National in 2012 Benghazi Terrorist Attack Sentenced to More Than 19 Years in Prison

 

On October 31, 2017, we posted about the capture of Libyan national Mustafa al-Imam by U.S. special forces in Misrata, on the north coast of Libya. He was alleged to be involved in the 2012 deadly attack on the U.S. diplomatic compound and CIA annex in Benghazi, Libya.  An unnamed official told the AP at that time that the suspect was taken to a U.S. Navy ship at the Misrata port for transport to the United States. (see Libyan National Charged in 2012 Attack on U.S. Special Mission and Annex in #Benghazi).  On June 17, 2019, DOJ announced that hel was found guilty of terrorism charges in the 2012 attack of the U.S. facilities in Benghazi. (see Libyan National Mustafa al-Imam Found Guilty of Terrorism Charges in 2012 Benghazi Attack (June 24, 2019).
On January 23, 2020, DOJ announced that Mustafa Al-Imam was sentenced to more than 19 years in prison. See below:

Mustafa Al-Imam Sentenced to More than 19 Years in Prison for September 2012 Terrorist Attack in Benghazi, Libya

Mustafa al-Imam, a 47-year-old Libyan national, was sentenced today to 236 months in prison on federal terrorism charges and other offenses stemming from the Sept. 11, 2012, terrorist attack on the U.S. Special Mission and CIA Annex in Benghazi, Libya.  Ambassador J. Christopher Stevens and U.S. government personnel Sean Smith, Tyrone Woods, and Glen Doherty died in the attack.

The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the District of Columbia Jessie K. Liu, Jay Tabb, Executive Assistant Director of the FBI’s National Security Branch, and Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office.

“We have not rested in our efforts to bring to justice those involved in the terrorist attacks on our facilities in Benghazi, which led to the death of four courageous Americans – Tyrone Woods, Sean Smith, Glen Doherty, and Ambassador Christopher Stevens – and we never will,” said Assistant Attorney General for National Security John C. Demers.  “Those responsible for these crimes must be held accountable.  I want to thank the agents, analysts, and prosecutors – and all of their partners in the U.S. government – who are responsible for this important investigation.”

“Today’s sentence demonstrates the United States’ continuing commitment to pursue justice against those who commit terrorist acts against the United States no matter how far we must go or how long it takes. Mustafa al-Imam played an important role in the terrorist attack that destroyed the U.S. Mission and the CIA Annex in Benghazi,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “We will continue to work with our law enforcement partners to pursue justice against all those who murdered these four American heroes and who seriously injured our personnel defending these U.S. facilities overseas.”

“The tragic loss of four American lives in the Benghazi attacks will never be forgotten and today’s sentencing of Mustafa al-Imam is an important reminder of that,” said Jay Tabb, Executive Assistant Director of the FBI’s National Security Branch. “The FBI is committed to investigate and bring to justice all individuals involved in acts of terrorism against U.S. facilities or citizens and will use the full range of our resources to pursue such cases.”

“Mustafa al-Imam played a significant role in the 2012 Benghazi attack, one that ultimately claimed American lives,” said Assistant Director William F. Sweeney, Jr. “While nothing will ever change the outcome of this horrific event, today’s sentencing is a reminder that the safety of Americans—whether at home or abroad, civilian or otherwise—will always be our top priority. If you commit an act of terrorism, we will find you and bring you to justice.”

Al-Imam was captured in Libya on Oct. 29, 2017, and brought to the United States to face trial in the U.S. District Court for the District of Columbia.  He was found guilty by a jury on June 13, 2019, following a six-week trial, of one count of conspiracy to provide material support or resources to terrorists and one count of maliciously destroying and injuring dwellings and property, and placing lives in jeopardy within the special maritime and territorial jurisdiction of the United States. He was sentenced by the Honorable Christopher R. Cooper.

According to the government’s evidence, on the night of Sept. 11, 2012, a group of extremists, armed with AK-47 rifles, grenades, and other weapons, swept into the U.S. Special Mission in Benghazi, setting fires and breaking into buildings.  During that violence, Ambassador Stevens, Mr. Smith, and Diplomatic Security Service (DSS) Special Agent Scott Wickland valiantly tried to protect themselves when the attackers stormed into the Ambassador’s residence, sheltering in a secure area.  However, when the attackers could not gain entry to the secure area, the attackers set fire to the residence.  Ambassador Stevens and Mr. Smith suffocated from the thick, black smoke that enveloped the residence.  Special Agent Wickland, who tried to guide them to safety, was injured and repeatedly took small arms fire while trying to rescue Ambassador Stevens and Mr. Smith.

Al-Imam arrived at the Mission shortly after the attack began, accompanying Ahmed Abu Khatallah, the leader of an extremist militia named Ubaydah bin Jarrah and one of the planners of the attack.  During the attack on the Mission, al-Imam maintained contact with Khatallah in a series of cellphone calls, including an 18-minute phone call that took place during the height of the attack.  Members of Ubaydah bin Jarrah, as well as other extremist groups, were caught on surveillance video attacking the Mission.  After the American security personnel withdrew from the Mission, al-Imam, Khatallah, several UBJ members, and other extremists entered the Mission’s office and removed sensitive information, including maps and other documents related to the location of the CIA’s Annex in Benghazi.  

Following the attack at the Mission, in the early hours of Sept. 12, 2012, the violence continued at the CIA Annex, first with gunfire and then with a precision mortar attack.  While defending the Annex, Mr. Woods, Mr. Doherty, DSS Special Agent David Ubben, and CIA security specialist Mark Tiegen were hit by a precision mortar attack, leading to the deaths of Mr. Woods and Mr. Doherty.  Special Agent Ubben and Mr. Tiegen were seriously wounded but survived.

This case was investigated by the FBI’s New York Field Office with substantial assistance from various other government agencies, including the Department of Defense and the two victim agencies, the CIA and the U.S. Department of State’s Diplomatic Security Service. The National Security Division’s Counterterrorism Section provided significant assistance.

The case was prosecuted by Assistant U.S. Attorneys John Cummings and Karen Seifert of the National Security Section of the U.S. Attorney’s Office for the District of Columbia.  Assistance was provided by Assistant U.S. Attorneys Nicholas Coleman and Jolie Zimmerman, Paralegal Specialist Donna Galindo, detailed Paralegal Specialist Ashley Davis, Intelligence Research Special Dustin Powell, contract Document Management Analyst Michael Watts, Victim-Witness Advocates Yvonne Bryant, Tonya Jones, Laverne Perry and Wanda Queen, and Litigation Technology Chief Leif Hickling. Earlier stages of the prosecution were handled by Assistant U.S. Attorney Michael DiLorenzo and former Assistant U.S. Attorneys Opher Shweiki and Julieanne Himelstein.

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Former @StateDept Employee Candace Marie Claiborne Sentenced to 40 Months in Prison

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Correction: 40 months in prison, not 40 years.
In March 2017, the Justice Department announced the arrest of State Department employee, Candace Marie Claiborne, 60, of Washington, D.C. for obstructing an official proceeding and making false statements to the FBI, both felony offenses, and for allegedly concealing numerous contacts that she had over a period of years with foreign intelligence agents. (see @StateDept OMS Arrested/Charged With Concealing Extensive Contacts With Chinese Intel Agents).
In April 2019, USDOJ announced that Claiborne pled guilty to conspiring with foreign agents. (see Former @StateDept Employee Pleads Guilty to Conspiring with Foreign Agents).
On July 9, 2019, USDOJ announced that Claiborne was sentenced to 40 months in prison, three years of supervised release and a fine of $40,000, for conspiracy to defraud the United States, by lying to law enforcement and background investigators, and hiding her extensive contacts with, and gifts from, agents of the People’s Republic of China, in exchange for providing them with internal documents from the U.S. State Department.
Below via the DOJ announcement. See the original statement here.

The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu of the District of Columbia, Acting Assistant Director in Charge John P. Selleck of the FBI’s Washington Field Office and Deputy Assistant Secretary Ricardo Colón, Domestic Operations, U.S. Department of State’s Diplomatic Security Service (DSS).

“Chinese intelligence agents convinced Candace Marie Claiborne to trade her integrity and confidential information of the United States government for cash and other gifts for herself and her family,” said Assistant Attorney General Demers. “Claiborne withheld information and lied repeatedly about these foreign intelligence contacts. Violations of the public’s trust are an affront to our citizens and to all those who honor their oaths. With this sentencing, justice has been imposed for these dishonorable criminal acts.”

“Candace Claiborne received gifts from foreign officials and lied to investigators repeatedly about her role in defrauding the U.S. government,” said U.S. Attorney Liu. “Claiborne violated her oath as a State Department employee, and we will continue to hold accountable those abuse their positions of trust.”

“Claiborne was entrusted with privileged information as a U.S. government employee, and she abused that trust at the expense of our nation’s security,” said John P. Selleck, Acting Assistant Director in Charge of the FBI Washington Field Office. “The targeting of U.S. security clearance holders by Chinese intelligence services is a constant threat we face, and today’s sentencing shows that those who betray the trust of the American people will be held accountable for their actions. I would like to thank the men and women of the FBI Washington Field Office and our partners at the Department of Justice for their work in investigating and prosecuting this case.”

“This sentence makes a strong statement to those who would attempt to commit crimes that violate the public trust and damage our national security. The Diplomatic Security Service is dedicated to working with the FBI and the U.S. Attorney’s Office to ensure that those who commit these crimes are brought to justice,” said Deputy Assistant Secretary Colón.”

Claiborne, of Washington, D.C., pleaded guilty in April 2019 in the U.S. District Court for the District of Columbia, to a charge of conspiracy to defraud the United States. She was sentenced by the Honorable Randolph D. Moss.

According to the plea documents, Claiborne began working as an Office Management Specialist for the Department of State in 1999. She has served overseas at a number of posts, including embassies and consulates in Baghdad, Iraq, Khartoum, Sudan, and Beijing and Shanghai, China. As a condition of her employment, Claiborne maintained a TOP SECRET security clearance. Claiborne also was required to report any contacts with persons suspected of affiliation with a foreign intelligence agency.

Despite such a requirement, Claiborne failed to report repeated contacts with two intelligence agents of the People’s Republic of China (PRC), even though these agents provided tens of thousands of dollars in gifts and benefits to Claiborne and her family over five years. The gifts and benefits included cash wired to Claiborne’s USAA account, Chinese New Year’s gifts, international travel and vacations, tuition at a Chinese fashion school, a fully furnished apartment, and a monthly stipend. Some of these gifts and benefits were provided directly to Claiborne, while others were provided through a co-conspirator.

In exchange for these gifts and benefits, Claiborne provided copies of internal documents from the Department of State on topics ranging from economics to visits by dignitaries between the two countries.

Claiborne noted in her journal that she could “Generate 20k in 1 year” working with one of the PRC agents, who tasked her with providing internal U.S. Government analyses on a U.S.-Sino Strategic Economic Dialogue that had just concluded.

Claiborne, who confided to a co-conspirator that the PRC agents were “spies,” willfully misled State Department background investigators and FBI investigators about her contacts with those agents, the plea documents state.  After the State Department and FBI investigators contacted her, Claiborne also instructed her co-conspirators to delete evidence connecting her to the PRC agents.

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Former @StateDept Employee Pleads Guilty to Conspiring with Foreign Agents

Former @StateDept Employee Pleads Guilty to Conspiring with Foreign Agents

 

 

 

This is a follow-up post to a 2017 case concerning a State Department employee arrested for concealing extensive contacts with intelligence agents from China (see @StateDept OMS Charged With Concealing Extensive Contacts With Chinese Intel Agents). Last month, USDOJ announced that Claiborne pled guilty to conspiring with foreign agents. Sentencing is scheduled for for July 9, 2019.

Download Claiborne Plea Agreement

Via USDOJ:

Former State Department Employee Pleads Guilty to Conspiring with Foreign Agents

Defendant Admitted Receiving Tens of Thousands of Dollars in Benefits From Two Chinese Agents in Exchange for Internal State Department Documents
Candace Marie Claiborne, a former employee of the U.S. Department of State, pleaded guilty today to a charge of conspiracy to defraud the United States, by lying to law enforcement and background investigators, and hiding her extensive contacts with, and gifts from, agents of the People’s Republic of China (PRC), in exchange for providing them with internal documents from the U.S. State Department.

The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu of the District of Columbia, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office and Deputy Assistant Secretary Ricardo Colón, Domestic Operations, U.S. Department of State’s Diplomatic Security Service.

The plea took place before the Honorable Randolph D. Moss of the U.S. District Court for the District of Columbia.

“Candace Marie Claiborne traded her integrity and non-public information of the United States government in exchange for cash and other gifts from foreign agents she knew worked for the Chinese intelligence service,” said Assistant Attorney General Demers.  “She withheld information and lied repeatedly about these contacts.  Violations of the public’s trust are an affront to our citizens and to all those who honor their oaths.  With this guilty plea we are one step closer to imposing justice for these dishonorable criminal acts.”

“Candace Claiborne broke the public trust when she accepted gifts and money from foreign officials, and then lied about it to State Department background investigators,” said U.S. Attorney Liu. “The United States will continue to seek to hold accountable those who abuse their positions of trust.”

“Candace Claiborne was entrusted with Top Secret information when she purposefully misled federal investigators about her repeated interactions with foreign contacts which violated her oath of office as a State Department employee,” said Assistant Director McNamara.  “The FBI will continue to investigate individuals who fail to report foreign contacts, which is a key indicator of potential insider threats posed by those in positions of public trust.”

“Our close working relationship with the FBI and the Department of Justice resulted in the conviction of Candace Claiborne who violated the public trust and damaged our national security,” said Deputy Assistant Secretary Colón.  “Diplomatic Security will continue working with our law enforcement partners to vigorously defend the interests and security of the United States of America.”

According to the plea documents, Claiborne, 63, began working as an Office Management Specialist for the Department of State in 1999.  She served overseas at a number of posts, including embassies and consulates in Baghdad, Iraq, Khartoum, Sudan, and Beijing and Shanghai, China.  As a condition of her employment, Claiborne maintained a TOP SECRET security clearance.  Claiborne also was required to report any contacts with persons suspected of affiliation with a foreign intelligence agency as well as any gifts she received from foreign sources over a certain amount.

Despite such a requirement, Claiborne failed to report repeated contacts with two agents of the People’s Republic of China Intelligence Service, even though these agents provided tens of thousands of dollars in gifts and benefits to Claiborne and her family over five years.  The gifts and benefits included cash wired to Claiborne’s USAA account, Chinese New Year’s gifts, international travel and vacations, tuition at a Chinese fashion school, a fully furnished apartment, a monthly stipend and numerous cash payments.  Some of these gifts and benefits were provided directly to Claiborne, while others were provided to a close family member of Claiborne’s.

In exchange for these gifts and benefits, as stated in the plea documents, Claiborne provided copies of internal documents from the State Department on topics ranging from U.S. economic strategies to visits by dignitaries between the two countries.

Claiborne noted in her journal that she could “Generate 20k in 1 year” working with one of the PRC agents.  That same agent at one point tasked her with providing internal U.S. Government analyses on a U.S.-Sino Strategic Economic Dialogue that had just concluded.

Claiborne, who confided to a co-conspirator that the PRC agents were “spies,” willfully misled State Department background investigators and FBI investigators about her contacts with those agents, the plea documents state.  After the State Department and FBI investigators contacted her, Claiborne also instructed her co-conspirators to delete evidence connecting her to the PRC agents.  She was arrested on March 28, 2017, following a law enforcement investigation.

Judge Moss scheduled sentencing for July 9, 2019.  Claiborne, of Washington, D.C., was ordered detained pending sentencing, but will self-surrender for said detention on June 5, 2019.  The statutory maximum penalty for a person convicted of conspiracy to defraud the United States is five years in prison.  The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes.  The sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.

The FBI’s Washington Field Office is leading the investigation into this matter.  The case was prosecuted by Thomas A. Gillice and investigated by John L. Hill, both Assistant U.S. Attorneys in the U.S. Attorney’s Office for the District of Columbia, and Deputy Chief Julie A. Edelstein and Trial Attorney Evan N. Turgeon of the National Security Division’s Counterintelligence and Export Control Section.

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What happens after pay period #26?

Posted: 1:26 am EST

The State Department issued a thin Furlough Guidance Handbook to employees on January 4. It notes that State Department employees funded with no-year or multi-year accounts received their paychecks for pay period #25 on Thursday, January 3, 2019. Foreign Service annuitants received their December annuity payments on January 2, 2019 (Note that pension is not funded by annual Congressional appropriations but is drawn from the Foreign Service Retirement and Disability Fund). The Guidance says that State will also be able to make payroll for these employees for pay period #26 (actual pay date is January 17). What happens beyond that seems to be a big question mark beyond the nugget that CGFS will be issuing some future guidance.

Should the lapse in appropriations continue past the end of pay period 26 (January 5, 2019), the Bureau of the Comptroller and Global Financial Services (CGFS) intends to process payroll for pay period 26 to meet the Department’s Thursday, January 17, 2019 official pay date, for those individuals (both direct-hire employees and LE staff) who are funded using no-year or multi-year accounts that have residual balances. CGFS will be preparing and issuing T&A guidance for bureaus and posts for reporting time during any periods of lapse for pay period 26 and any later pay periods. Furloughed, excepted, and intermittent excepted employees who are not funded would not receive another pay check until there is legislation to permit payment.

01/04/19DS-5113 Agency Notice of Unemployment Compensation for Federal Employees
01/04/19SF-8 Unemployment Compensation for Federal Employees Program

We should note that a January 7 update to AFSA members flagged down a different date, which is this Friday, January 11:

In order to meet normal deadlines for processing payroll in time to meet the next payday on January 17, AFSA understands that funds need to be appropriated by Friday, January 11. The bill that funds operations at State and USAID passed the Senate Appropriations Committee in June by a 31-0 vote, but that bill has not yet gone before the full Senate. 
[…]
If that does not happen by the end of the week, however, some members of the Foreign Service (including some members who have been required to report to work) may not receive a paycheck on January 17. As a first step to preparing for that difficult possibility, members are encouraged to read the new Furlough Handbook to review options for coping with the financial consequences of the partial government shutdown.

Consular Affairs

An update on our query about Consular Affairs funding — we’ve heard from a source that CA/EX recently sent a notice to consular sections informing folks that the bureau “anticipates” being able to continue paying its staff and providing consular services as long as the funding situation with partner bureaus/agencies allowed them to continue providing service that generates revenue. Here are a couple of dire scenarios that have a potential to impact thousands of working people and their families, and not just within the State Department. 

If partner agencies are not able to do their work due to the ongoing funding lapse, it could have a potential to derail consular services. Think DHS or  FBI.  Visa services require that applicant fingerprints, photo and personal data be sent to DHS for the purpose of checking the applicant’s fingerprint information against DHS databases and establishing a record within DHS’s Automated Biometric Identification (IDENT) system. Visa issuance data is then forwarded to DHS for use at US ports of entry to verify the validity of the visa. Visa services also require the  transmission of  applicant fingerprints and personal data to the FBI fingerprint system for the purpose of checking to determine if the person has a criminal record that would have an effect on visa eligibility. If DHS and FBI stop providing those clearances, embassies and consulates won’t be able to issue visas worldwide. And that would have a cascading impact on services, fees collected, and employees getting paid.  Also if/when visa issuances stop, there will be economic consequences for the tourism, travel and hospitality industries. What’s that going to do to the international travelers spending in the United States, or travel industry employment, both direct and indirect employment?

We should note that DHS’s Automated Biometric Identification System or IDENT, is operated and maintained by OBIM (IDENT currently holds more than 200 million unique identities and processes more than 300,000 biometric transactions per day). OBIM resides in DHS’s Management Directorate. During the lapse in appropriations, the Directorate estimates 193 employees as the total number exempt/excepted employees to be retained out of a total of 1,777 employees. So they have people working over there but for how long? How long can people work with no pay?

Additionally, DOJ’s 2019 Contingency Plan says that “all FBI agents and support personnel in the field are considered excepted from furlough.” It also says that “At FBI headquarters, the excepted personnel will provide direction and investigative support to all field operations and excepted headquarters functions. This includes personnel in the Criminal Justice Information Services Division, which provides fingerprint identification services to criminal and national security investigations, and the Records Management Division, which provides name check services to criminal and national security investigations.”

Regarding partner bureaus — consular operations do not stand alone at overseas posts. They are not able to operate without security guards, typically locally hired security guards. Local guards are not under consular sections but under the purview of Regional Security Officers. They are funded under the Bureau of Diplomatic Security within the Worldwide Security Protection, an account that the State Department previously identified as “initially have [ing] available balances”. We don’t know how much available balances DS has, but when that account is depleted, there won’t be money to pay the local guards, and posts cannot just use comp time or issue IOUs. And if there are no local guards to provide this critical function, posts won’t be able to open their consular sections to the public. That will have a cascading effect on services provided, fees collected, employees getting paid, and beyond. 

Also below, the State Department furlough Q&A includes the following;

On jobs during furlough: May I look for a job during the furlough if that is required to apply for unemployment compensation in my state?

A. A furloughed employee may seek employment without advanced authorization and can provide to the unemployment office any evidence that he or she is in fact seeking employment. Some States require claimants be engaged in an active search for work to be eligible for unemployment compensation. Department employees are reminded that relevant ethics laws, rules, and regulations continue to apply to them while in furlough status, including restrictions on outside employment with non-federal entities. For example, Department employees employed by a non-Federal entity during the furlough may later be restricted from participating in their official capacity in matters that affect that entity. If you have specific questions about your potential employment, you can contact EthicsAttorneyMailbox@state.gov.

For presidential appointees and covered noncareer employees (e.g., both noncareer SES and SFS and certain Schedule C employees), there are certain restrictions on outside earned income. Employees who file a Public Financial Disclosure Report (OGE 278e) must also file a recusal notice at negotiationnotice@state.gov when negotiating outside employment.

If you have more specific questions not covered above, you can contact negotiationnotice@state.gov.

Injury while on furlough: If employees are injured while on furlough or LWOP, are they eligible for workers’ compensation?

A. No, workers’ compensation is paid to employees only if they are injured while performing their duties. Employees on furlough or LWOP are not in a duty status.

Can somebody please ask the State Department what happens to employees in war zones and high threat posts who may be injured during this shutdown?

Mental Health Resources:

MED’s Employee Consultation Services (ECS) office remains open with reduced staffing during the furlough. You can reach ECS at 703-812-2257 or email MEDECS@state.gov.FEDERAL

Medical Evacuation:

New medical evacuations and ongoing medevacs are considered excepted activities and will continue during the furlough.

Employee Health Benefits and Life Insurance: Will I still have coverage under the Federal Employee Health Benefits (FEHB) program during the furlough?

A. Yes, the employee’s FEHB coverage will continue even if an agency does not make the premium payments on time. Since the employee will be in a non-pay status, the enrollee share of the FEHB premium will accumulate and be withheld from pay upon return to pay status.

For Federal Employee Group Life Insurance (FEGLI), coverage continues for 12 consecutive months in a nonpay status without cost to the employee (5 CFR 870.508(a)) or to the agency (5 CFR 870.404(c)). Please note that premium payments are required if an enrolled employee in nonpay status is receiving workers’ compensation (5 CRF 870.508(a)).