FOR IMMEDIATE RELEASE                                  CRM
FRIDAY, JULY 12, 1996                        (202) 514-2008
                                        TDD  (202) 514-1888      

     WASHINGTON, D.C. -- The Department of Justice announced
today a federal judge sentenced William D. Lanning, a former GS-
15 senior program manager of the Defense Intelligence Agency
(DIA), to serve 37 months in prison, and to pay $200,732 in
restitution, for causing DIA program funds to be fraudulently
paid to a woman who was not qualified to perform, and who did not
perform, work for which the funds were paid.      

     The woman, Kay Winters (now known as Catherine Duchene),
previously pled guilty to her role in the scheme and testified
against Lanning at trial.

     Lanning, 63, a resident of Northern Virginia, had been
indicted on charges that in 1989 he arranged for Winters to be
hired as a $500-a-day consultant to a highly technical computer-
based electronic warfare project that Lanning directing at DIA.

    Winters, who had previously worked as a legal secretary, had
no education or experience relevant to the DIA project.  At the
time, however, she and Lanning had a romantic relationship, and
her status as a consultant allowed her to travel with him to
Europe, Asia, and Hawaii.  From 1989 through 1993, Winters
fraudulently received $401,464 in DIA funds.  She used some of
the funds to repay loans Lanning had made to her.

     In addition to the conspiracy, the indictment charged
Lanning with making false statements about Winters'
qualifications, and with violating financial conflict of interest
law.  After a three-week trial, a jury found Lanning guilty on
all charges on November 21, 1995.

     Lanning was ordered by Judge John Garrett Penn to serve
three years on supervised release following completion of his
prison term.  

     The case was handled by trial attorneys Laura A. Ingersoll
and Michael A. Attanasio of the Department's Public Integrity
Section, Criminal Division.  It was investigated by the Defense
Criminal Investigative Service and the Internal Revenue Service's
Criminal Investigation Division.
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