NEWS RELEASE

OFFICE OF THE UNITED STATES ATTORNEY

WESTERN DISTRICT OF MISSOURI

BETH PHILLIPS

Contact Don Ledford, Public Affairs ● (816) 426-4220 ● 400 East Ninth Street, Room 5510 ● Kansas City, MO 64106

www.usdoj.gov../index.html

FEBRUARY 9, 2010

FOR IMMEDIATE RELEASE

FORMER GOVERNMENT CONTRACTOR INDICTED FOR STEALING

$650,000 IN COMPUTER EQUIPMENT FROM USDA

ALLEGEDLY SOLD STOLEN EQUIPMENT

OVER THE INTERNET FOR $166,000

            KANSAS CITY, Mo. – Beth Phillips, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., man was indicted by a federal grand jury today for stealing more than $650,000 worth of computer equipment from the U.S. Department of Agriculture, where he worked as a contract employee, and selling it over the Internet for more than $166,000.

            Gragg R. Vaill, 48, of Lee’s Summit, Mo., was charged in a 24-count indictment returned by a federal grand jury in Kansas City.

            According to the indictment, Vaill worked for Anadarko, which is a contract provider of information technology, service and support for USDA. Vaill worked as senior technician in the office of the chief information officer, a position that allowed him unrestricted access to the USDA main facility as well as additional office spaces and the warehouse.

            Today’s indictment alleges that, between January 2006 and August 2009, Vaill stole 64 Cisco computer switches and routing equipment of various models from the USDA. As a result, USDA suffered a loss of approximately $652,597. Vaill allegedly sold the equipment online, including on e-Bay, for $166,083. Switches are used as routers; they are a little larger than a DVD player and have up to 48 open ports for Internet and network connections.

            Today’s indictment charges Vaill with 19 counts of mail fraud related to shipping the stolen computer equipment across state lines. Vaill is charged with four counts of money laundering related to financial transactions of the proceeds of the fraud scheme. Vaill is charged with one count of computer fraud for using his government work computer in furtherance of the fraud scheme.

            Phillips cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

            This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the U.S. Federal Protective Service and IRS-Criminal Investigation.

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