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(202) 514-2007
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Former Department of Defense Official Pleads Guilty
to Stealing Over $100,000 in DOD Intelligence Funds

WASHINGTON – A former Department of Defense (DOD) official pleaded guilty in U.S. District Court for the District of Columbia to one count of theft and embezzlement of public money, Assistant Attorney General Alice S. Fisher for the Criminal Division announced today.

John Taylor was a civilian DOD employee who worked as an intelligence contingency funds officer and admitted today that he stole over $100,000 in intelligence contingency funds from DOD. He was assigned to the 500th Military Intelligence Brigade as part of the U.S. Army Intelligence and Security Command at Camp Zama, Japan, which is located approximately 25 miles southwest of Tokyo. In this role, Taylor was responsible for budgeting, disbursing and accounting for intelligence contingency funds, funds reserved for the official duties of government intelligence agents. Taylor was also required to manage classified bank accounts and supervise agents engaged in classified intelligence-gathering activity.

As part of his plea, Taylor admitted that, from 2003 through January 2006, he used his official position to steal at least $106,000 in DOD funds designated for intelligence-related activities. Taylor embezzled the money by withdrawing cash from a government bank account whose funds were intended for intelligence agents. To conceal his acts, Taylor falsified DOD accounting vouchers and forms.

Theft or embezzlement from the United States carries a maximum penalty of 10 years in prison and a $250,000 fine. Sentencing was set for June 8, 2007.

The case is being prosecuted by James A. Crowell IV and John P. Pearson of the Public Integrity Section, which is headed by Acting Section Chief Edward C. Nucci. The case was investigated by the FBI and the Criminal Investigation Division of the U.S. Army, in support of the Justice Department’s National Procurement Fraud Task Force and the International Contract Corruption Initiative.

The National Procurement Fraud Initiative was announced by Deputy Attorney General Paul J. McNulty in October 2006, and is designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in contracting activity for national security and other government programs. As part of this initiative, the Deputy Attorney General has created the National Procurement Fraud Task Force, which is chaired by Assistant Attorney General Fisher.