SEOUL, South Korea –
The Department of the Army Criminal Investigation Division’s Far East Field Office recently conducted a joint investigation with the FBI in which a rooms manager and security director were found guilty of defrauding the U.S. Government over a span of 12 months.
Evidence obtained in the investigation revealed that a recycling contractor deposited kickback money in the room manager’s Korean bank account; the rooms manager subsequently withdrew the money and split it with the security director. During the investigation it was revealed that the rooms manager was also receiving kickbacks from several other contractors working for the Dragon Hill Lodge.
The security director was sentenced to one year probation, a $7,500 fine, $14,166 in restitution, a $100 special assessment, and debarred from working for the U.S. Government until 2028.
The rooms manager was sentenced to three years’ probation, a $10,000 fine, $14,166 in restitution, a $100 special assessment, and debarred from working for the U.S. Government until 2027.
“Fraudulent activities by Army employees or government contractors who work with the Army will not be tolerated,” said Special Agent in Charge Michael DeFamio, Department of the Army Criminal Invesitgation Division, Far East Field Office. “Our Army communities, and the public, can rest assured that we are committed to pursuing and punishing anyone that abuses government programs for their own personal gain.”
“The FBI continues to work with our investigative partners in the United States military to weed out fraud and abuse by unscrupulous contractors and military employees,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The punishment in this case will send a message to anyone contemplating similar criminal activity that defrauding government programs funded by U.S. taxpayers will not be tolerated.”
This case was investigated by Army CID, FBI-Los Angeles Field Office, and adjudicated in the U.S. District Court, District of Hawaii.