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November 21, 2019 By cs

DoD’s second financial audit uncovers 1,300 new deficiencies

The results of the Pentagon’s second-ever full financial audit are a decidedly mixed bag: Although officials were able to point to some areas of significant progress in managing the Defense Department’s finances over the past year, overall, auditors are uncovering new problems faster than the department is fixing them.

At this time a year ago, auditors had made 2,410 separate findings and recommendations during the department’s first-ever financial audit. In the 2019 financial report DoD issued Friday evening, officials said 556 of those had been resolved. But besides the more than 1,800 problems the department is still wrestling with from 2018, auditors made more than 1,300 new findings during the course of the latest audit.

In addition, the audit turned up a larger number of material weaknesses this year.

Keep reading this article at: https://federalnewsnetwork.com/defense-main/2019/11/dods-second-financial-audit-uncovers-1300-new-deficiencies/

Filed Under: Government Contracting News Tagged With: audit, deficiencies, DISA, DoD, financial management, government property, Pentagon, Senate Armed Services Committee

July 9, 2018 By AMK

Two men face federal charges for their role in stealing government property

U.S. Attorney Josh Minkler has announced that two men are facing federal charges for their role in stealing Humvee vehicles that were meant to be destroyed and sold for scrap.

Richard S. Treloar, 63, St. Louis, Missouri, faces seven counts of conversion of government property and seven counts of false statements; co-defendant Mark W. Collier 52, Bedford, Indiana, faces seven counts of false statements.

“Theft, waste, fraud and abuse of government funds and equipment is never acceptable,” said Minkler. “When it involves stealing from our military, it is a particularly egregious offense and those responsible will be held accountable.”

Treloar owned a St. Louis based company called Treloar Enterprises International, Inc. (TEI) which contracted with the Department of Defense’s Defense Logistics Agency (DLA) to demilitarize military vehicles, mostly High Mobility Multipurpose Wheeled Vehicles commonly known as Humvees. The Humvee is a four-wheel drive military light truck capable of being outfitted with armor, ballistic glass and high-powered weapons and is currently being used in the Iraq and Afghanistan theaters.

As part of Treloar’s contract with DLA, his company was responsible for demilitarizing the Humvees which would include eliminating the functional capabilities and inherent design features of vehicles. In many cases, that included the total destruction of the Humvee. When the Humvees were demilitarized, both Treloar and Collier verified in writing that the process had been completed.

From January 2014, through November 2015, TEI took delivery of all Humvees from Naval Support Activity Crane (Crane) which is located in Southern Indiana. To facilitate the contract, TEI opened a facility in nearby Spencer, Indiana, where the purported demilitarization took place. The indictment alleges Treloar converted at least seven fully armored Humvees for his own use and sold or attempted to sell them for his own benefit. The value of the Humvees was over $589,000. Both defendants also certified that each and every Humvee was demilitarized, when in fact they were not.

This case was investigated by DoD’s Office of Inspector General-Defense Criminal Investigative Service, Naval Criminal Investigative Services, and Defense Logistics Agency’s Office of the Inspector General.

“Today’s indictments demonstrate the commitment of the Defense Criminal Investigative Service and its law enforcement partners to protect the integrity of all Department of Defense programs,” said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS’ efforts in this investigation mitigated further significant loss and waste of taxpayer dollars from this fraudulent scheme.”

“Not only is fraud of this type a serious financial crime, the equipment involved is concerning,” said Mike Wiest, Special Agent in Charge of the NCIS Southeast Field Office. “There are no legitimate civilian uses for an armored military vehicle. NCIS will continue to work with our law enforcement partners to hold accountable those who siphon resources away from America’s warfighters.”

Assistant U.S. Attorney Bradley P. Shepard who is prosecuting this case for the government, said Treloar faces up to 10 years’ imprisonment on each count of conversion of government property and Collier faces up to five years’ imprisonment on each count of false statements.

An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.

In October 2017, U.S. Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting complex, large-scale fraud schemes, particularly those that exploit positions of trust.

Source: https://www.justice.gov/usao-sdin/pr/two-men-face-federal-charges-their-role-stealing-government-property

Filed Under: Government Contracting News Tagged With: abuse, conversion of government property, DCIS, demilitarize, destruction of property, DLA, DoD, DOJ, fraud, government property, IG, Justice Dept., NCIS, OIG, surplus, theft, waste

December 30, 2016 By AMK

Former DoD chief sentenced to 33 months in prison for selling GSA Schedule products on eBay

Former Defense Department official Roy E. Friend of Virginia has been sentenced to 33 months in prison for stealing government property.

fort-eustisFriend was sentenced on Dec. 20, 2016, based on his Mar. 24th guilty plea.

According to a statement of facts filed with the plea agreement, Friend, a civilian employee of the Department of Defense (DoD) who worked as the Chief of Logistics and Program Management, Aviation and Missile Command at Fort Eustis, admitted to fraudulently obtaining goods through the General Services Administration (GSA) Advantage website. The GSA Advantage system is an e-business website designed to facilitate on-line purchasing and GSA Schedules contract research by federal employees and local government entities.  GSA Advantage gives various government agencies access to millions of commercial products and services.  From in or about Aug. 19, 2010, to about mid-2015, Friend made approximately 666 orders totaling approximately $2.3 million using his GSA Advantage account

According to court documents, an investigation conducted by the GSA’s Office of Inspector General (OIG), the DoD’s OIG, and the FBI determined that many of the items purchased by Friend were taken for personal use, and that Friend would take certain items to an outside business where he and/or another conspirator would remove GSA shipping labels and resell the items for private financial gain.  The investigation revealed that certain items were sold over the eBay auction website.

Beyond Friend’s fraudulent use of GSA Advantage, law enforcement also determined that Friend fraudulently obtained $228,685.55 worth of equipment for Fort Lee through the U.S. Falcon contract.  In total, Friend fraudulently obtained goods valued at approximately $905,035.82.

Friend was also sentenced to three years of supervised release and ordered to pay restitution in the amount of $715,829 as well as criminal forfeiture.  Friend previously forfeited property valued at $189,206.

Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-24

Source: https://www.justice.gov/usao-edva/pr/former-dod-employee-sentenced-stealing-government-property

Filed Under: Government Contracting News Tagged With: abuse, conspiracy, corruption, DoD, DOJ, FBI, Fort Eustis, fraud, government property, GSA Advantage, GSA Schedule, Justice Dept., OIG, stealing

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