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Shakedown-Two former Pentagon officials get prison terms for accepting bribes and prostitutes
govexec.com ^

Posted on 12/28/2003 8:30:18 AM PST by chance33_98

Shakedown

By Chris Strohm and Amelia Gruber cstrohm@govexec.com

Two former senior Pentagon procurement officials have been sentenced to more than 24 years in prison for money laundering and accepting gifts of cash and sexual favors from prostitutes from companies seeking business with the federal government.

Robert Neal and Francis Jones were sentenced Dec. 12 in the U.S. District Court for the Eastern District of Virginia. The men, both from Maryland, were convicted in July of conspiracy, extortion, money laundering, witness tampering and obstruction of justice. They were each sentenced to more than 24 years in prison and jointly ordered to pay $1.75 million in restitution.

Neal served as the director of the Pentagon's Office of Small and Disadvantaged Business Utilization from 1996 to 2001. Jones joined the office in 1999 as Neal's executive assistant.

According to prosecutors, Neal and Jones conspired to extort bribes and gratuities from companies and individuals doing business with their office. The items included $70,000 in cash, Rolex watches, sexual favors from prostitutes, travel expenses, hotel rooms and at least $200,000 in payments to third parties intended for their benefit. They also conspired to embezzle federal funds.

One witness testified that he provided the men with prostitutes at a government conference in the U.S. Virgin Islands in exchange for contracts worth $1.4 million, according to a report published on Morningstar.com, a news and information service on financial markets. Another witness also said he provided prostitutes for the men and paid for a 1997 trip to Las Vegas to see a heavyweight title fight between Mike Tyson and Evander Holyfield, the Web site reported.

"It is the ultimate insult for someone charged with helping minority and disadvantaged businesses to shake them down," said U.S. Attorney Paul J. McNulty, who prosecuted the case.

Both Neal and Jones said they plan to appeal.

United States of America vs. Robert Lee Neal, Jr. and Francis Delano Jones, Jr., U.S. District Court for the Eastern District of Virginia (03-CR-35).

Playing Catch-Up

The Energy Department faces a serious backlog of workers' compensation cases, according to a new report from the General Accounting Office.

As of July 2003, Energy had only fully processed roughly 6 percent of 19,000 claims received from contract employees allegedly injured on the job at nuclear weapons laboratories and industrial sites across the country, the report found. The department hadn't started on more than half of the cases. Another 40 percent remained in the initial stages of processing.

Under the 2000 Energy Employees Occupational Illness Compensation Program Act, Energy can help contract employees exposed to toxic substances apply for state workers' compensation benefits. Workers or their survivors can file cases asking Energy to persuade contract companies to cooperate in state compensation claims. In the past, the department had often intervened in cases on behalf of company management, rather than the contract worker.

The law, which took effect in September 2002, requires Energy to process cases in multiple steps. First, contract employees must submit medical evidence showing that exposure to hazardous substances at work caused their illness. A panel of three doctors then reviews the evidence and decides if exposure to toxic materials was likely to have "caused, contributed to or aggravated" the worker's health problems. Once the physicians give the go-ahead, Energy can intervene in state workers' compensation claims on the employees' behalf.

GAO researchers found that the bottleneck in Energy's case processing typically occurs at the medical review stage. The department has a hard time finding doctors to serve on panels, GAO researchers found, partly because the workload fluctuates, and partly because of a shortage of qualified physicians.

Energy can choose from 100 doctors in a pool available to serve on panels, and has asked the National Institute for Occupational Safety and Health to appoint an additional 500 physicians to the group. But NIOSH told Energy there are only about 200 physicians who are not already in the pool but qualified to join, the GAO said.

Energy officials have started searching for ways to help the existing pool of doctors operate more efficiently, the report said. The department has suggested allowing one physician to complete an initial review of the cases, for example. Other doctors would only look at the case if the doctor in charge of the first review decided against the contract employee.


TOPICS: Crime/Corruption; Government
KEYWORDS:

1 posted on 12/28/2003 8:30:18 AM PST by chance33_98
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To: chance33_98
"The most ehtical....blah,blah,blah".
2 posted on 12/28/2003 8:31:43 AM PST by stylin19a (is it vietnam yet ?)
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To: stylin19a
Procurement officers and prostitutes?

Nice irony.

3 posted on 12/28/2003 8:34:06 AM PST by billorites (freepo ergo sum)
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To: chance33_98
Pentagon's Office of Small and Disadvantaged Business Utilization

Part of the legacy of Affirmative Action. Kind of the "Jason Blair" effect, only this was MY money they were wasting.

4 posted on 12/28/2003 8:37:44 AM PST by leadpenny
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To: chance33_98
Clinton years. 'nuff said.
5 posted on 12/28/2003 8:39:28 AM PST by fhayek
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To: chance33_98
Neal was a Schedule C Clinton appointee, and although I'm not certain about Jones, I believe he was as well.
6 posted on 12/28/2003 8:39:34 AM PST by skip2myloo
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To: chance33_98
Collective memory for the GAO is short. There was a similar story (ie kickbacks, prostitutes etc) in 1974-1975 where the DPSC and the Army Veterinary services passed substandard food for the military. The USAF Veterinary Service caught the Army and reported it and resulted in a Congressional Investigation and many folks sent to prison or Leavenworth. Jimmy Carter did away with the USAF Veterinary Service in 1976 because it was the one that caused a lot of democrats to get caught with their hands in the cookie jar.
7 posted on 12/28/2003 8:39:54 AM PST by vetvetdoug
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To: chance33_98
...the Pentagon's Office of Small and Disadvantaged Business Utilization.

That has an ominous ring to it. In what way do they 'utilize' small and disadvantaged businesses?

8 posted on 12/28/2003 8:40:09 AM PST by Bloody Sam Roberts (Never let your sense of morals prevent you from doing what is right.)
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To: chance33_98
"Shakedown-Two former Pentagon officials get prison terms for accepting bribes and prostitutes"

Holdovers from the Clinton era of, "ethical government."

9 posted on 12/28/2003 8:43:08 AM PST by Cobra64 (Babes should wear Bullet Bras - www.BulletBras.net)
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To: chance33_98
According to prosecutors, Neal and Jones conspired to extort bribes and gratuities from companies and individuals doing business with their office.

They need to have a public hanging of at least a couple of these guys every year just to keep it down to a dull roar.


10 posted on 12/28/2003 8:44:37 AM PST by Nick Danger ( With sufficient thrust, pigs fly just fine.)
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To: skip2myloo
It should be pointed out that virtually all of the guys who go to jail for federal contract fraud are political appointees and not career federal employees.
11 posted on 12/28/2003 8:52:39 AM PST by AndyJackson
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To: fhayek
Exactly. If Gore were in power, and JaNUT Reno was still around I doubt that there would be a prosecution.
12 posted on 12/28/2003 9:02:07 AM PST by Enterprise
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Comment #13 Removed by Moderator

To: vetvetdoug
I recall way back in Korean thingy that military was allowing sub standard meat to be purchased. Greed never changes. It does not happen in a vacumn, someone always knows about it.
14 posted on 12/28/2003 9:06:09 AM PST by cynicom
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To: Skyler Shegonee
OHMYGOD! Blacks, profiting off of other blacks? Who would ever have guessed?
15 posted on 12/28/2003 9:11:04 AM PST by Enterprise
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To: chance33_98; Nick Danger
Off with their heads!
16 posted on 12/28/2003 9:23:16 AM PST by auboy (I'm out here on the front lines, sleep in peace tonight–American Soldier–Toby Keith, Chuck Cannon)
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To: chance33_98
You can see the left wing bias in the reporting. Does anyone doubt that if these two had been in Bush's administration, that fact would have been prominently mentioned? The mere fact, that no administration is named makes it clear that these were Willie's boys. Of course, the prostitutes issue suggests Willie.

Beware, the primary job of the left wing media (and the media who believe they are not left wing, but got their training at the same places) is to do all things that improve Willie's legacy while, at the same time, avoiding every thing that could stain it even further.

Are we sure these guys don't have blank, "to whom it may concern" pardons that Willie sold them?

17 posted on 12/28/2003 9:30:53 AM PST by Tacis
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To: Skyler Shegonee
"Mr. Neal and Mr. Jones, both of whom are black ..."

"African ethics."

Now, now ... the issue here isn't that they were black, but that they were undeserving of the job. I work in the defense industry and nearly everyone serving on the SDBU is incompetent. They rationalize that they deserve the high-paying jobs because we whites got ours through the "old-boy network." Yup, they learned that in political science classes on race in taxpayer funded universities. That's why they shamelessly hold government jobs, doing nothing, and partake in graft to boot.

18 posted on 12/28/2003 9:44:50 AM PST by tom h
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To: chance33_98
Does "character count" yet?
19 posted on 12/28/2003 10:14:43 AM PST by The Duke
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To: chance33_98
*GASP!*

You mean these two were appointed by the clinton Maladministration?

Please, say it ain't true! Nobody will believe it!!

20 posted on 12/28/2003 11:12:49 AM PST by Gritty (the clintons: deconstructing America, one wall at a time....)
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