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Press Release

Former Department of Defense Auditor charged with conflict of interest for representing contractor on issues she previously handled for the goverment

For Immediate Release
U.S. Attorney's Office, District of Alaska

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman was indicted by the federal grand jury in Anchorage, Alaska, for violating federal conflict of interest laws.   

According to the indictment Jodi Ann Andres, 48, of Anchorage, Alaska, was an auditor with the Department of Defense’s Defense Contract Audit Agency (“DCAA”) from January 2003 to September 2006.  During that time, she was the primary auditor of cost proposals, labor rates and claims for the Missile Defense Agency.  The Missile Defense Agency is responsible for developing, testing and fielding an integrated Ballistic Missile Defense System for the United States.

The Alaska Aerospace Corporation, formerly the Alaska Aerospace Development Corporation, was established in 1991 by the State of Alaska to develop a high technology aerospace industry in the state.  Alaska Aerospace became a contractor for the Missile Defense Agency in 2003 and under a five year contract, provided support for launches from the Kodiak Launch Complex in Kodiak, Alaska. 

In September 2006, Andres left employment with the DCAA and began employment with Alaska Aerospace as its Controller.  The indictment alleges that in July 2008, Andres represented Alaska Aerospace during communications and negotiations with the DCAA about the same Missile Defense Agency contract she had previously audited, with the intent to influence the DCAA about that contract, in violation of a lifetime restriction which barred such communications.

The maximum penalty for violating the conflict of interest statute, which imposes a permanent restriction against communicating on behalf of another on a matter in which the person participated personally and substantially as a government employee, is up to five years in prison and a $250,000 fine.  An arraignment date has been set for March 22, 2013.

Ms. Loeffler commends the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, for the investigation of this case.

An indictment is only a charge and is not evidence of guilt.  A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

Updated January 29, 2015