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Wednesday, July 30, 2008
(202) 514-2007
TDD (202) 514-1888

Former Department of Defense Official Pleads Guilty to Making False Statement

WASHINGTON – Constance Walton, a former employee of the Defense Logistics Agency, an agency within the Department of Defense (DoD), pleaded guilty today to one count of making a false statement, Acting Assistant Attorney General Matthew Friedrich of the Criminal Division announced.

According to court filings, Walton, 63, of Mitchellville, Md., failed to disclose to the DoD that she received income from a company that she owned. Walton started the company to receive work assignments from contractors of the U.S. Department of the Army (Army) Information Technology Agency where her associate, Robert Johnson, worked. Between 2000 and 2006, Walton received more than $100,000 from the contractors.

At sentencing, Walton faces a maximum penalty of five years in prison, a three-year term of supervised release, and a fine of $250,000. Walton’s sentencing is scheduled for Nov. 14, 2008.

On June 27, 2006, in the Eastern District of Virginia, Johnson pleaded guilty to one count of wire fraud for using his official position to obtain more than $150,000 from the Army. Johnson committed this fraud by directing two prime contractors to subcontract with two companies in which Johnson secretly held a financial interest, one of which was Walton’s company. Johnson also falsely certified that the prime contractors and their subcontractors provided services to the government when, in fact, such services were not provided. On Sept. 29, 2006, District Court Judge James C. Cacheris sentenced Johnson to 24 months in prison.

The case is being prosecuted by Ann C. Brickley of the Public Integrity Section, headed by Section Chief William M. Welch II. The case is being investigated by Army Criminal Investigation Division, the Defense Criminal Investigative Service, the General Services Administration and the FBI. The U.S. Attorney’s Office in the Eastern District of Virginia assisted in Johnson’s prosecution.