FOR IMMEDIATE RELEASE

CRM

WEDNESDAY, AUGUST 19, 1998

(202) 514-2008

TDD (202) 514-1888

FORMER FHWA OFFICIAL PLEADS GUILTY 

TO BRIBERY AND MONEY LAUNDERING CHARGES

 
 
	WASHINGTON, D.C. -- Former Federal Highway Administration
(FHWA) official Alberto Santiago pleaded guilty in federal court
today to conspiracy, bribery, and money laundering charges in a
contract scheme involving federal highway funds.

	Santiago, 41, of Herndon, Virginia, faces up to 40 years in
prison and $1 million in fines.

	The defendant, a GS-15 level employee, was the Contracting
Officer's Technical Representative (COTR) overseeing contracts
involving millions of dollars in FHWA funds.  According to the
charges, from 1993 through 1997, Santiago solicited and received
more than $150,000 in cash and money orders from government
contractors over whom he had official responsibility.  

	In turn, Santiago permitted the contractors to submit
fraudulent invoices to obtain FHWA funds to reimburse themselves
for their payments to Santiago.  The charges indicate that the
contractors agreed to submit more than $200,000 in fraudulent
invoices to recoup their unlawful payments to Santiago.

	The money laundering charges stem from a fraudulent scheme
to obtain $100,000 in FHWA funds, wire the funds overseas and
then back to the United States, and then convert the proceeds to
cash.  The cash was to be used to pay off a contractor who had
earlier made unlawful payments to Santiago.  

	Santiago also pleaded guilty to money laundering for his use
of $15,500 in cash bribe money to purchase a Jeep Grand Cherokee.

	As part of his plea agreement, Santiago resigned from the
FHWA, and agreed to forfeit his retirement funds along with the
proceeds from the sale of his Jeep.

	The investigation is continuing.

	The prosecution is being handled by the Public Integrity
Section of the Department of Justice, and the U.S. Attorney's
Office in Washington, D.C.  The investigation is being conducted
by the Washington Field Office of the FBI, with assistance from
the Office of Inspector General for the Department of
Transportation.

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98-376