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Moline Man Admits Taking $49,000 in Wrongful Danger Pay and Post Differential Payments

March 9, 2009

Rock Island, Ill. – A now-retired civilian U.S. Army employee, David W. Arensdorf, 65, of Moline, Illinois , pled guilty and is scheduled to be sentenced on July 10, 2009, for theft of approximately $49,000 in danger pay and post differential payments he wrongfully received. On Friday, March 6, 2009, Arensdorf waived indictment and pled guilty to an information charging him with one count of theft of government property. U.S. District Judge Joe Billy McDade presided at the hearing in Rock Island and released Arensdorf on bond pending sentencing.

At the hearing and according to court documents, Arensdorf admitted that he continued to receive additional pay to which he was not entitled from June 2005 to March 2007. In January 2005, Arensdorf, a civilian employee with the U.S. Army Sustainment Command at the Rock Island Arsenal, deployed to Southwest Asia as the Senior Army Representative for the Joint Deployment Operation Distribution Center. While deployed, Arensdorf was entitled to and did receive a danger pay allowance, additional pay provided to government employees during certain deployments due to the increased risk of danger faced while deployed and post differential pay, provided during deployment as compensation for living in substandard conditions.

At the hearing and according to court documents, in June 2005, when Arensdorf re-deployed to the U.S. and returned to his job at the Rock Island Arsenal, he intentionally failed to comply with the requirement that he submit paperwork to end the danger pay and post differential payments. For 21 months, Arensdorf continued to receive an additional amount of $1,128 for each pay period, every two weeks, approximately $49,000 in total, in danger pay and post differential payments. After being questioned by law enforcement officers, Arensdorf submitted the paperwork in March 2007 to end the wrongful payments. Arensdorf admitted he used a portion of the extra money for his personal benefit, including, among other things, expensive paintings, home improvements, and elective medical treatment.

At sentencing, the offense carries a statutory maximum penalty of 10 years in prison. The defendant may also be ordered to pay restitution.

The case is the result of an investigation by the Defense Criminal Investigative Service and is being prosecuted by Assistant U.S. Attorney Michael D. McCoy.

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