FOR FURTHER INFORMATION CONTACT
AUSA VICKIE E. LEDUC or
MARCIA MURPHY at 410-209-4885
AUGUST 23, 2007
FOR IMMEDIATE RELEASE
NATIONAL ARCHIVES EMPLOYEE AND GOVERNMENT CONTRACTOR EMPLOYEE INDICTED IN $958,280 FRAUD AND THEFT SCHEME
Used Shell Companies to Accomplish the Scheme
Greenbelt, Maryland - A grand jury indicted James Clay Whitson, age 42, of Nottingham, Maryland, and Robert Caleb McCray, age 41, of Silver Spring, Maryland for theft of government property and conspiracy arising from a scheme to embezzle $958,280.64 from the United States, announced United States Attorney for the District of Maryland Rod J. Rosenstein. The indictment was returned on August 20, 2007 and unsealed today upon the initial appearance of McCray this morning.
According to the 10 count indictment, Whitson was responsible for property management and project oversight for the National Archives and Records Administration’s (the Archives) Facilities and Personal Property Management Branch located at the Archives II facility in College Park, Maryland. McCray was a facility support manager at a company which had a government contract to provide facility management at the Archives II facility. McCray’s duties included supervising the Archives II loading dock.
The indictment alleges that from July 2002 to September 2006, Whitson used his Archives government purchase card to pay three businesses purportedly operated by McCray for goods and services that these entities never provided or provided at inflated prices. McCray’s businesses did not have any offices or employees. Their addresses were listed as McCray’s residences and post office box rented by him. For example, Whitson used his government purchase card to pay a McCray business $50,000 for allegedly cleaning fabric panels in the Archives II facility, when in fact a company performed the work for about $1,627.50, which McCray paid; and Whitson used his government purchase card to pay another McCray business $14,500 for allegedly constructing systems furniture in the Archives II facility, when in fact two employees of McCray’s employer and another individual performed this work for about $900, which the defendants paid. The defendants shared the proceeds from the funds they caused the Archives to electronically deposit into the sham businesses’ accounts.
The indictment seeks forfeiture of $958,280.64, including two vehicles owned by McCray.
The defendants face a maximum sentence of five years in prison followed by three years of supervised release and a $250,000 fine for one count of conspiracy; and 10 years in prison followed by three years of supervised release and a $250,000 fine for nine counts of theft of government property. The defendants have had their initial appearances in federal district court and no further hearings are scheduled at this time.
In October 2006, the National Procurement Fraud Task Force was formed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force - chaired by Assistant Attorney General Alice S. Fisher for the Criminal Division - includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community, and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein thanked the National Archives and Records Administration Office of Inspector General and the Small Business Administration Office of Inspector General for their investigative work, and commended Assistant United States Attorney Michele W. Sartori, who is prosecuting the case.