Former Army Staff Sergeant Pleads Guilty to Money Laundering
WASHINGTON – A former staff sergeant in the U.S. Army pleaded guilty today to a one-count criminal information charging her with money laundering arising from a scheme involving the fraudulent awarding and administration of U.S. government contracts in Iraq, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.
Theresa Russell, 40, of Pleasanton, Texas, pleaded guilty in federal court in San Antonio. According to court documents, from January 2004 through October 2004, Russell was deployed to Logistical Support Area (LSA) Anaconda, a U.S. military installation near Balad, Iraq. As part of the plea, Russell admitted that from April 2004 to February 2005, she received more than $30,000 in cash from John Rivard, a former major in the U.S. Army Reserves. Russell admitted that she knew the money she received from Rivard was the proceeds of bribery.
In July 2007, Rivard pleaded guilty to bribery, among other offenses, in connection with his service as an Army contracting officer at LSA Anaconda. According to court documents, from April 2004 to August 2005, Rivard conspired with a government contractor to steer federally-funded contracts to the contractor’s company in exchange for hundreds of thousands of dollars in illicit bribe payments.
According to court documents, Rivard instructed Russell to divide the payments she received from him into several smaller monetary bank deposits, which she admitted she did, in an effort to avoid the detection of law enforcement authorities. Russell admitted that she subsequently used the criminal proceeds to purchase, among other things, a car, cosmetic surgery, and household furnishings and goods.
The maximum penalty for the money laundering charge is 10 years in prison, a $250,000 fine and three years of supervised release following the prison term. Sentencing is scheduled for May 21, 2010.
This case is being prosecuted by Trial Attorneys Daniel A. Petalas and Justin V. Shur of the Criminal Division’s Public Integrity Section, as well as Trial Attorney Ann C. Brickley. This case is being investigated by Army Criminal Investigation Command; Defense Criminal Investigative Service; the FBI; Internal Revenue Service-Criminal Investigation; Special Inspector General for Iraq Reconstruction; and U.S. Immigration and Customs Enforcement.