~~U U ~U ~-U C WA -0 30 7-4G N A /~~
S U BJ :
S /R E S E A R C H C O R P l_~~I O N
OF THE UNIVERSITY
U.S. NAVAL CRIMINAL INVESTIGATIVE SERVICE
." " " '.Jj)
.......,.and ........plannedto benefit from their NAVAIRSYSCOM
the award of a proposed contract
(also referred to PROJECT KAIE'E') to a company
(Pacific Research Institute
Research for the proposed contract was being conducted by
of S/RCUH who were being funded by non-related Navy grants
which were administered by
and who had fiduciary oversight of
the grant monies.
Ultimately, proposed contract# 02-0-3151 was not
did not develop evidence of a criminal
concerning contract# 02-D-3151 and
conflict of interest issues, Reference
Subsequent to the submission of Reference
(A), the investigation
continued with a focus on possible false claim issues concerning
(3)S/RCUH staff personnel hired at the direction, IOlf;;;;~"
working for NAVAIRSYSCOM
Office of Navy Research
at salaries exceeding $100,000 per annum.
(3)S/RCUH personnel were involved in proposal research and
for proposed contract award # 02-0-3151
However, S/RCUH records show that labor for the three(3) personnel
were charged against two(2) U.S. Navy grants.
No bid and proposal
(8&P) labor charges were noted in the S/RCUH records for these
(58)Enclosures #12, #16, and #19
Further, records show that through the University of Hawaii
(UOH), S/RCUH submitted claims for payment of labor and related
travel costs for these three(3) personnel, as direct costs to the
tW9(2)u.s. Navy grants, Reference
(8),Exhibit (58) Enclosure
Numerous interviews have been conducted of pertinent
parties to the inVestigation
and reported out via References
(I), including contact with the U.S. Attorney's Office, District of
Hawaii, Honolulu, HI.
This case has been transferred from Washington
DC to Hawaii for prosecutorial
oversight and action.
is being compiled at the request of AUSA Michael
SEABRIGHT, Chief Criminal Prosecutor.
Said tasking includes an audit
of RCUH employment records by the Defense Criminal Investigative
Service to determine actual monetary damage to the government.
currently focuses on the directed hireof"lI ..
at RCUH and the use of Navy Grant money
to pay their salaries for work related to PROJECT KAIE'E' vice the
Other possible fraudulent activities that develop as
a result of this investigation will be captured under separate
efforts and reporting.
This caseis a reactive investigation
resulting from disclosures
revealed via Reference (A).
Possible suspected violations include 31
USC, Section 3729 (Civil False Claims Act), 18 USC 666 (Theft
Programs Receiving Federal Funds), 18 USC Section 208
(Acts Affecting a Personal Financial Interest) and 1001 (False
may also apply.
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