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u.s. NAVAL CRIMINAL INVESTIGATIVE SERVICE

REPORT OF INVESTIGATION (INTERIM)

17DEC04

GENERAL PROCUREMENT (II)

CONTROL: 24JUN02-DCWA-0307-4GNA

I/NAVAIRSYSCOM, PATUXENT RIVER, MD/POSSIBLE PROCRUREMENT IRREGULARITIES WITH THE DEVELOPMENT OF THE MODULAR COMMAND CENTER (MCC)

COMMAND/NAVAIRSYSCOM/00019

MADE AT/DCWA/NCISFO WASHINGTON DC 1I .......... t , SPECIAL AGENT

REFERENCE(S)

(A) NCISFO WASHINGTON DC ROI (INTERIM) 190CT02(CONTAINS EXHIBITS (1) THROUGH (57))

(B) NCISFO WASHINGTON DC ROI(INTERIM)/21JUL03 (CONTAINS EXHIBIT (58) )

(C) NCISFO WASGHINGTON DC ROI{INTERIM)/7JAN04 (CONTAINS EXHIBITS (59) THROUGH (61)

(0) NCISFO WASHINGTON DC ROI(INTERIM)/24MAR04 (CONTAINS EXHIBITS (62) - (66»)

(E) NCISFO WASHINGTON DC ROI(INTERIM)/17JUL04 (CONTAINS EXHIBITS (67)
- (70) )
( F) NCISFO WASHINGTON DC ROI(INTERIM)/19AUG04 (CONTAINS EXHIBITS ( 71)
AND (72)
(G) NCISFO WASHINGTON DC ROI (INTERIM)/200CT04 (CONTAINS EXHIBITS
(73) - (81) ) (H) NCrSFO WASHINGTON DC ROI (INFO)/10FEB04/I/OFFICE OF NAVAL RESEARCH, ARLINGTON, VA/ALLEGED SOLICITIATION AND RECEIPT OF A GRATUITY BY NAVY OFFICIALS IN HAWAII

CCN: 29JAN04-DCWA-0023-4HNA

EXHIBIT(S) ........ ",C

(82) INVESTIGATVE ACTION: MEETING WITH DOJ TRIAL ATTORNEY V· 29NOV04 ... (COpy ALL)

(83)· INVESTIGATIVE ACTION: FINCEN REQUEST/1DEC04 ... (COpy ALL/0023 LESS ENCLOSURE)

(84) INVESTIGATIVE ACTION: ONR BRIEFING/3DEC04 ... (COPY ALL)

(85) INVESTIGATIVE ACTION: REQUEST FOR AUDIT SUPPORT/7DEC04 ... (COpy ALL/0023 LESS ENCLOSURE)

(86) INVESTIGATIVE ACTION: CONTACT WITH DCAA/8DEC04 ... (COpy ALL) (87) INVESTIGATIVE ACTION: REQUEST FOR IG, DOD

SOBPOENA/14DEC04 ... (COpy ALL/0023 LESS ENCLOSURE)

(88) INVESTIGATIVE ACTION: COORDINATION WITH DCAAI16DEC04 ... (COpy ALL)

(89) INVESTIGATIVE ACTION: REVIEW OF NAVAL INSPECTOR GENERAL REPORT/16DEC04 ... (COpy ALL/0023 LESS ENCLOSURE)

EXECUTIVE SUMMARY

1. This investigation began from a Naval Inspector General

for E~spected travel issues

1I1I1I::::::::~::~~uln~t~i~l~h~iis.retirement,

WARNING

THlS DOCUMeNT lS TtlE PROPERTY OF THE NAVAL CRIMINAL INVESTIGATIVE SERVICE CONTENTS MAV BE OISC~OSF.O ONLY TO PERSONS WHOSE OFFICIAL DUTIES REOUIRE ACCESS HERno. CONTENTS MAY NOT BE DISCLOSED TO THE PARTYISI CONCERNED WITHOUT SPECIFIC

AUTl-IORlZATION FROM THE NAVAL CRIMINAlINVESTIG",TIV£ SERVICE.

24JUN02-DCWA-0307-

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SUBJ: I !NAVAIRSYSCOM/ pA' ... .JXENT RIVER, MD/POSSIBLE

U.S. NAVAL CRIMINAL INVESTIGATIVE SERVICE

I

~ PROOF.v;Jk?MENT IRREGU

Washington Navy Yard. During the 2000 - March 2002 period, served as the Commander of Task Force 76 (CTF-76), ous Group One, Amphibious Force Seventh Feet, White Beach,

Okinawa, Japan. While at CTF-76, became active in the Modular Command Center (MeC) program. The Office of Naval Research

(ONRl am Manager and funding officer for MCC is/was"""

a GS-15 civilian official .......... alleged relationship was a focus of the NAV~quiry. The initial

focus of this investigation concerned reported

association with Pacific Research Institute It was suspected

that efited from an association with PRI via

Systems Command (NAVAIRSYSCOM) contract award i NOQ421-02-D-315l (# 02-D-3151) to the Research Corporation of the University of Hawaii (RClIH) funded through ONR _. RCUH

proposal documentation identified PRI as a management division of RCUH. However, proposed contract # 02-D-3151 was not awarded. The investigation did not develop evidence of a criminal violation by

erning contract # 02-D-3l51 and conflict of interest

issues, r (A) details.

2. Subsequent to reference (A), the investigation continued with a focus on possible false claims issues concerning three RCUH staff

personnel hired at the direction of ONR the

concurrence of RCUH The three

RCUH personnel were

all hired at salaries exceeding $100,000 per annum. Ail three RCUH

personnel had some involvement in the proposal submd s siona for the -';;1-C.' proposed contract award # 02-D-3151 to RCUH. However, RCUH records

show that labor for the three personnel were charged against two U.S.

Navy grants. No bid and proposal (B & P) labor charges were noted in

the RCUH records for these personnel, reference {Bl, exhibit (58)

enclosures #12, #16, and #19 pertain. Further, records show that

through the University of Hawaii (UOH), RCUH submitted claims for

payment of labor and related travel costs for these three personnel,

as direct costs to the two U.S. Navy grants, reference (B), exhibit

(58) enclosure (20) pertains.

3. On 16 January 2004, was interviewed concerning

his proposal work for contract # 02-D-3151 and RCUH records showing full labor charges to Navy (NAVAIR) Grant # N00421-01-1-0176, RCUH charge/project # 657764. However, ........... maintained he worked on the contract proposal (RCUH Project Kai'e'e) during off-duty hours, on weekdays and weekends. Inquiries were also conductBd concerning allegations initially reported via reference (H), that during 2003

~nd two other Navy civilian personnel with responsibilities for Office of Naval Research (ONR) sponsored projects, grants, and contracts in Hawaii received gratuities from Orincon, a Navy contractor with business in Hawaii ......... and the two other Navy civilian personnel reportedly obtained from Orincon, tickets valued at $250 (each) to attend the Ready-To-Learn fund r a i s i nq dinner held on Kauai on 22 April 2003. The Ready-To-Learn dinner ~~ an annual event sponsored by Senato= Daniel INOUYE of Hawaii. S~nator INOUYE is a ranking member of the Senate Appropriations Committee and a

FOR~SEONLY page~---- -

WARNING

THIS DOCUMENT IS T!;IE PROPERTY OF THE NAVAL CRIMINAL INVESTIGATIVe SERVICE

CONTE~TS MAY 8E DISCLOSF.D ON~Y TO PEASONS WHOSE OFFICIA~ DUTIES RECUIRE ACCESS

HERETO. CONT£NTS MAV NOT 8£ OISC~OSEO TO THE PAATYISI CONCERNED WITHOUT SPECIFIC

AUTHORI~ATION FADM TH~ NAVAL CRIMINAL INVESTIGA TlVE SERVICE.

24JUN02-DCWA-0307-

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SUBJ: I/NAVAIRSYSCOM/PATOXENT RIVER, MD/POSSIBLE PROCRUh~MENT

U.S. NAVAL CRIMINAL INVESTIGATIVE SERVICE

IRREGU

source of funding fo ONR programs in Hawaii. Inquiries

with ONR Inspector General personnel concerning this matter surfaced General Ledger (GL) records from Orincon showing that the company paid $5000 for a table supporting the 2003 Ready-To-Learn event (Reference (0) pertains). Orincon GL records also show that .......... reimbursed Orincon $50 in connection with this event. ONR travel records reflect that during the 21 - 26 April 2003 period, ......... traveled on government orders from Washington OC to Lihue, HI (Kauai) to "Attend Meetings at MIOPAC office at PMRF."

4. On 31 March 2004, a GS-14 Electronics Engineer

assigned to NAVIRSYSCOM (Code 4.5T) was interviewed. During

the October 2002 - 2003 period, ....... was detailed to support ONR

Division 035 (Naval Expeditionary Warfare) under ........

advised that he provided "legworkU support for programs at

ONR. ~rovided details and records for his attendance with

"1I1I1I~t the 2003 Ready-To-Learn dinner in Kauai ........ disclosed tlllllllainvolvement with funding a 2003 Delivery Order under a General Services Administration (GSA) contract (NFI) with Anteon that required a subcontract to PICHTR (Pacific International Center for High Technology Research). PICHTER is a Hawaii based contractor

reportedly now employing former RCUH personnel and

_also disclosed that circa December 2003, .•••• ~ from her ONR MidPAC duties and was reassigned to a

at ONR headquarters in Arlington, VA. _ identified 4I1I1I1I ...... ~s the ONR official who assumed~

responsibilities for ONR MidPAC. had a general recollection

that ......... had some concerns MidPAC programs.

5. On 3AUG04, a Program Manager assigned to

NAVAIRSYSCOM .5T, provided an E-Mail with information

reflecting a current affiliation by former with Hawaiya,

a Hawaii based company. Further, the informa from .........

reflects details for a current NAVAIRSYSCOM effort through ARINC (aviation support contractor), that includes a "services" subcontract to Hawaiya. (SUPRA) is identified as the originator of the subcontract requirement to Hawaiya.

6. On 16AUG04, an inquiry through the Central Contractor

Registration (CCR) database identified ~s the

business contact for Hawaiya Technologies, LLC of Honolulu, HI. Hawaiya is identified as an Asian-Pacific American owned and Minority owned small business. AutoTrack corporate database Lnqu Lr Le s concerning Hawaiya were negative.

7. On 20AUG04, Procuring Contracting Officer (peO) interviewed regarding the ARINC subcontract to Hawaiya. provided no information indicating that the ARINC subcontract was not a legitimate procurement request. Concerning the Grant issue, acknowledged she was the Grant Officer for which _ and had been hired by RCUH per ONRlllllllltdirection.

lated that she could have requested an audit concerning

t ssues for the labor charged by and _ However,

FOR OVJIIIIIIUSE ONLY Page 3

WARNING

THIS DOCUMENT IS THE PROPERTY OF THE NAVAL CRIMINAL INVESTIGATIVE SERVICE

CONTENTS MAY DE DISC~OSED ONLY TO PERSONS WHOSE OfFICIAL DUTIES REQUIRE ACCESS

HERifO. CONTENTS MAY NOT SE DISCLOSED TO THE PARTYISI CONCERNED WITHOUT SPECifiC

... UTHORI7. ... TlON FROM THE N ... VAL CRIMINAL INVESTIO,o,TIVE SERVICE.

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• " ,~;., ,.., : ... ' ~ _?: ~.'

. ; ,A. wfitten re'sponss was' ...

and AusA §I!':ABRIGHT.' .

24 JUN02- DCWA- 03 07 -)A

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SOBJ: I !NAVAIRSYSCOM/PATUXENT RIVER, MD/POSSIBLE PROCRUR:E!MENT

U.S. NAVAL CRIMINAL INVESTIGATIVE SERVICE

IRREGU

with a listing of the known active contracts and grants for ograms during the NOV02 - DEC03 period.

14. On 29NOV04, a meeting was conducted withilllill Attorney, Fraud Section, Criminal Division, U.S. Department of ,Justice (DOJ). _recommended several primary steps for this investigation, including steps to obtain proffers for consideration

of criminal immunity for key witnesses .....

Trial

15. On 3DEC04, a case briefing was provided tO~~P,I'=1 ~ ••••

Office of Naval Research (ONR), Arlington~ VA.

disclosed that has accepted entrance into a doctoral (PHD)

program at the University of Hawaii (UOH) starting sometime in January 2005. ~ndicated that ONR is considering supporting

~articipation in this program.

16. On 7DEC04, audit support for this case was formally requested from the Defense Contract Audit Agency (DCAA), Western Regional Office. Related to this, on l4DEC04 a request was forwarded to the Office of the Inspector General, Department of Defense (IG, DOD) to obtain an IG subpoena for additional records from RCUH required for investigative and audit review.

17. On 16DEFC04, relevant NCIS case reports, and related RCUH records obtained for this case, were forwarded for audit review to the DCAA Western Regiona~ Office, La Mirada, CA.

18. This investigation is continuing and is pending completion of the requested DCAA audit review and other appropriate investigative actions detailed infra.

NARRATIVE

1. This investigation is being pursued for suspected violations of 31 USC, Section 3729 (Civil False Claims Act). Several criminal statutes, including 18 USC 286 (Conspiracy to Defraud with respect to Claims) and 18 USC 1343 (Fraud by Wire) may also apply.

2. Subsequent to Reference (G), on 29NOV04, a meeting Nas held with Trial Attorney, Fraud Section, Criminal Division,

ng on The purpose of the meeting was to review this

case for consideration of appropriate future investigative actions.

Recommendations from included the pursuit of investigative

actions to obtain proffers from key potential witnesses and~or consideration of criminal immunity, Exhibit (82) pertains.

3. On IDEC04, a request was submitted with the Financial Crimes Enforcement Network (FinCEN) for updated financial queries concerning

••• and • Exhibit (83) pertains.

4. On 3 December 2004, )"I.gent (SSA)

FOR 0SIIIIIIIIt. USE ONLY pager--

orting agent (RA) and Supervisory Special conducted a case briefing concerning the

WARNING

THIS DOCUMENT IS '_HE PROPERT\' OF THE NAVAL CRIMINAL INVESTIGATIVE SERVICE CONTENTS MAV 8~ DISCLoseo ONLY TO PEASONS WHose OffiCIAL DUTIES REOU.AE Access HEReTO. CONT£NTS MAy NOT liE OISCLoseD TO THE PARTVISI CONCERNED WITHOllT SPECIFIC

MJTHORIZATION FROM r~ E N,WAL cmMINAL INVESTIGA nVE SERVIC~.

;::~~02:~:::::::::COM~PAT~NT RIVER, MD/POSSIBLE P~OCR&1tMENT

U.S. NAVAL CRIMINAL INVESTIGATIVE SERVICE

status of this investigation wi Office

of Naval Research (ONR), Arlington, Also atte the briefing

_ Iveretllllllllt for ONR, and

~t:rng) for ,ONR. During the meeting, disclosed that

~ has been accepted into a doctoral (PHD) program with the

University of Hawaii (UOH) starting sometime in January 2005. tIIIIIII indicated that ONR is considering supportingtllllllll participation

in this program. stressed that_ would not have any

procurement respon~ies for ONR during the academic periods she is enrolled in the PHD Program at UOH, Exhibit (84) details.

5. On 7DEC04, audit assistance for this case was requested from the Defense Contract Audit Agency, Western Regional Office, La Mirada, CA, Exhibit (85) details.

6. On 8 DEC04, RA contacted Investigative Audit Support, DCAA Western Re nal Office, La Mirada, CA concerning the requested audit support for this case. _ requested that the relevant case reports, and related RCUH records for this case be sent to her office for an initial audit review. advised that for significant future case events, nCAA will consider options to provide more direct audit support in Hawaii, Exhibit (86) pertains.

7. On 14DEC04, a request was forwarded to the Office of the Inspector General, Department of Defense (IG, DOD) to obtain an IG subpoena for additional required records from RCUH needed for investig'ative and audit review, Exhibit (87) details.

8. On 16DEC04 per the request by nCAA official (supra), a

compilation of case reports, and ~elated RCUH records were forwarded to the DCAA Western Regional Office, La Mirada, CA for an initial audit review, Exhibit (88) details.

9. During the investigation, a copy of the 13 November 2002 report for the results of the NAVINSGEN inquiry concerning was reviewed for relevance to this investigation. The NAVINSGEN inquiry

concerned five (5) allegations involving However,

reporting agent noted the results of the NAVINSGEN inquiry for Allegation ~1 concerning the suspected adultery issues, as having possible relevance to this investigation. Highlights of the findings of the NAVINSGEN inquiry for this allegation are:

and tIIIIIIIworked together continuously

1998;

Between September 2000 and march 2002, IIIIIIIvisited Okinawa, Japan tan times and frequently stayed in a BOQ room

next to assigned room;

Government cellular phone records obtained for the NAVINSGEN inquiry show almost daily communication between and_

FOR O.-E ONLY Page 6

WARNING

IRREGO

THIS DOCUMENT IS THE PRDPERTV OF THE NAVAL CRIMINAL INVESTIGATIVE SERVICE

CONT~NT5 MAV BE DISCLOSED ONLY TO PERSONS W~SE OFFICIAL DUTIES REOUIRE ACCESS

AUTHOnilATIDN FROM 1": IE NAVAL CRIMINAL INVESTl~ATIVE SERVICE,

HERETO, CONTENTS MA ( NOT 8E DISCLOSED TO THE PARTYISI CONCERNED WITHOUT SPECIFIC

24JUN02-DCWA-0307-}A '2)\l

SUBJ: I/NAVAIRSYSCOM/PATU~~:T RIVER, MD/POSSIBLE PROCRU~ENT U.S. NAVAL CRIMINAL INVESTIGATIVE SERVICE

IRREGU

The NAVINSGEN inquiry did not develop direct evidence that committed adultery withtlllilit

However, the inquiry reported sufficient evidence was developed to cause a reasonable person to believe that ....... ~as involved in an inappropriate relationship with a woman other than his wife.

Complete details for the NVINSGEN investigation are provided in i!:xhibit (89).

10. This investigation is pending completion of t-he requested DCAA audit review. Other planned investigative actions include the service of an IG, DOD subpoena (when approved) upon RCUH for additional required records, and the submission of an IG, DOD subpoena request for the financial records of A possible transfer of this case to NCISFO Hawaii circa January 2005 is also pending.

DISTRIBUTION NCISHQ: 0023

INFO: DCWA!HIHN(M) <, 1 o. \ d~'\)~

Commander, Office of Naval Research(M)~ Office of the Inspector General \ Attn:

800 North Quincy Street Arlington, VA 22217-5660

Commander, Naval Air s_ystems Command(M)~, Office of the Inspector General J, AIR-OOGl (Attn:

47123 Buse Road

Patuxent River, MD 20634

'FOR n~ USE ONLY

Page r'~;ST_ V2 LNY

WARNING

THIS DOCUMENT IS ~HE PROPERTY OF THE NAVAL CRIMINAL INVESTIGATIVE SERVICE CONTENTS MAY DE DISCLOSED ONLY TO PERSONS WHOSE OfFICIAL DUTIES ~EOUIRE ACCESS HERETO. CONTENTS MAY NOT aE DISCLOSED TO THE PARTYISI CONCERNED WITHOUT SPECIFIC AUTHORIZA.TION FROM TI'E NAVAL CAlMltlAL ItlVESTIGATIVE SERVICE,

840896 09:26 20041~ ;, II" :&MAIL #35258 OUT:DCWl

t.r r"'- fl",:,\,,::,2 3 4 6 "'",,1,

... ~.v

U.S. NA VAL CRIMINAL INVESTIGATIVE SERVICE

INVESTIGATIVE ACTION 29NOV04

CONTROL: 24JUN02-DCWA-0307-4GNA

I/NAVAIRSYSCOM, PATUXENT RIVER, MD/POSSIBLE PROCUREMENT IRREGULARITIES WITH THE DEVELOPMENT OF THE MODULAR COMMAND CENTER (MCC)

MEETING WITH DOJ TRIAL ATTORNEY •••••

1. On 29 November 2004, reporting agent (RA) and participants met

with Trial Attorney; Fraud Section, Criminal

Division (202-514-0840), U.S. Department of Justice, at his office in Washington DC. The purpose of the meeting was to review captioned investigation for consideration of appropriate future investigative techniques.

2. was provided with the general background and results of

this investigation to date. Based upon his experience,I· ...... Ii .. recommended several primary steps for this investigation, including the following:

An Inspector General Subpoena for the financial records of ......

Coordination with the Criminal Division, U.S. Attorney's Office, Hawaii District, to obtain proffers for consideration of criminal

immunity for primary witnesses and .

related his view that the cooperation of and

would be key in pursuing a possible criminal conspiracy

case.

PARTICIPANTS

DAD for Economic Crimes, NCIS Headquarters SA, Economic Crimes Div, NCIS Headquarters

SSA for Economic Crimes, NCISFO Washington DC ASAC for Economic Crimes, NCISFO Washington DC

REPORTED BY:

OFFICE:

FOR O~SE ONLY

Page 1 LAST ..... V2LNY

WARNING

THIS DOCUMENT IS THE PROPERTY OF THe NAVAL CRIMINAL INVeSTIGATIVE SERVICE CONTENTS MAY BE DISCLOSED ONLY TO PERSONS WHOSE OFFICIAL OUTIES REOUIRE ACCESS

HERETO. CONTENTS MAY NOT BE DISCLOSED TO THE PARTY' AUTHORllATION FROM THE NAVAL CRIMINAL INVEsnGATIV'

Exhibit !g~

841016 10: 28 20041~ ) H' '1)MAIL #35319 OOT: DCWP' ~,LIT~~2353

u.s. NAVAL CRIMINAL INVESTIGATIVE SERVICE

INVESTIGATIVE ACTION 02DEC04

CONTROL: 24JUN02-DCWA-0307-4GNA

I/NAVAIRSYSCOM, PATUXENT RIVER, MD/POSSIBLE PROCUREMENT IRREGULARITIES WITH THE DEVELOPMENT OF THE MODULAR COMMAND CENTER (MCC)

FINCEN REQUEST

1. Pursuant to a continuing NelS investigation, a FinCEN (Financial CrimS~ Enforce~entNjt~ork) request f6r financial ~atabase queiies was submitted for action on 1 December 2004, Enclosure (Al pertains.

ENCLOSURE

(A) NClS Facsimile Cover Sheet and FinCEN request/1 December 2004

REPORTED BY:

OFFICE:

NClSFO Washington DC

FOR O;llfllllfUSE.9J:!I:. Y

Page 1 LAST ~ V2 LNY

WARNING

THIS DOCUMENT IS THE PROPERTY OF THE NAVAL CRIMINAL INVESTIGATIVE SERVICE CONTENTS MAV BE DISClOSED ONLY TO PERSONS WHOSE OFFICIAL DIJTIES REOUIRE ACCESS

HERETO. CONTENTS MAV NOT BE DISCLOSED TO THE PARTVI~' - T"·"T ~".~,.,~

AUTHORIZATION FROM THE NAVAL CRIMINAL INVESTIGATIVE E xhib it (8:3)

~ (jJ

)

NCISFO Washington 6 3 (Desk)

NCIS Field Office Washington,

1014 N Street SE, Suite 1002 Building" 200, Washington Navy Yard Washington, DC 20374

Fax

1'0: FinCEN, VI8I1I18, VA

Fax: 703-905-3526

Pas ... 3

Phone; 800-707-2825

Datel 121112004

He: Additional FinCEN Financial Queries

CCI [Click hare and type name]·

o Urgent x For Review 0 PI .... Comment x P ..... Reply 0 PI .... Recycle

• Commenla: lhis is a request for additional financial queries to follow-up the prior FinCEN Report # 75551 received for this case. Please see the attached. Thanks.

\

)

o

.

.

.

OFFICIAL USE ONLY

FINANCIAL CRIMES ENFORCEMENT NETWORK

P.o. Box 39, Vienna, VA 22183-0039 1-BOO-SOS-BUCK

FAX: 703·905-3526 (FAX request will be accepted in lieu of original.)

REQUEST FOR RESEARCH

~ U.S. Federal 0 U~S. State/Local

Requesting Agency: _;.;N;";:;':';::"":":=;.;.:,:.:j=':":"':=-=:':= I

OperatlonJProJectName: •

Address: 1014 N Street SE Suite 1002, Washington Navy Yard, Building # 200, Washington DC 20374

Telephone En _

Fax: 202-433-2510

Agency Case Number: 24JUN02-DCWA..Q307-4GNA

E-mail Address.

meis.navy.mll

B. CERTIFYING OFFICIAL

I hereby certify, on ~ehalf of the agency listed above, that this request for research Is being submitted In support of a law enforcement, regulatory, or tax investigation or proceeding, or a national security matter, including the conduct of intelligence or counterintelligence activities to protect against international terrorism. NC.L5?

Telephone,~j ••

C. NETWORKING WAIVER

It Is FlnCEN's .pollcy to network (I.e" notify) different requestora that have to

FlftCEN on the same SUbJect •. Networking gives the requestors the opportunity to coordinate their efforts with other FinCEN requestora. both domestic and fntematfonal, on malters of mutual interest. FlnCEN will disclose JlD.Ix the Identity of your agency. your telephone number. your case numbe" and the common subJect(s).

Are you intere.ted In participating in the networking program? ~ Yes 0 No

Ifno, pleaseexplain: _

D. INVESTIGATIVE INFORMATION ~ Criminal

5ZJ Civil

o . Regulatory

1. Was any of the information on this req~est, including the name of the subject, derived from Grand Jury testimony or transcripts?

Dyes DYes

Ii2I No ~ No

2. Are other Agencies participating in this investigation? (If so, please kfentify agencies.)

3. In order to adequately respond to your request, please provide a detailed overview/purpose (e,g., asset identification) of this investigation and the principal vlolation(s) and what type of information you need from FinCEN.

Use a separate page if needed.

Subject Fenton used her government position and influence to submit a contract award proposal for the Research Corporation of the University of Hawaii (RCUH) under a Navy BAA requirement. Subjects Fenton an~have had a personal relationship for several years; Upon award, the RCUH contract was to emplo~ following his Navy retirement, In a management position with a salary of $250,000 per year. Relevant Conflicts of Interest and Post-Employment federal statutes pertain. This Is a request to follow-up the previously issued FinCEN report # 75551 received for this case. This follow-up request is for updated financial queries by FinCEN for the subjects identified Infra.

. OFFICIAL

SUBJECT INFORMATION

Number of Subjects listed: 2

-

Primary Su~jlct(.) of Inveatlgatlon (Individual or buisln88.):

~--------------~~E .. ~---~--------~~---------

Terephon.*: _

POB:

--------------~-----------

Pu.port~ _

AII.n Reg.*: _

other Infonnatlon or comments: ""'_'GS-15

Office of Naval Research Arlington, VA

Gend ....... _

Drlv.". L1c.n •• #1 State: _

AddUlonal SubJect(.) of Inv •• tlgatlon (Individual or bualne •• ):

Name: _

Address:

FBI #ISID#:;_. ...;...._ I

SSNlEI~----- _

Tel.phon •• : _

POB:

--------------------

G.nder: ..;,.M;.;..._ _

Race: _

Paaapor1.: _

AUen Reg. #: _

other Information or comments:

7 d dS a forme~. who was demoted to Captain before he retiired from the U.S. Navy .••• s now the prfnclpa~~, LLC, 2551 Kapiolanl Boul~vard Honolulu. ~1.

Countly: 1

Drive". License" State: _

Attach additional sheets as needed. Number of addltlonalaheets: _fl_

'b'10

840890 09: 24 20041 "'") It

~MAIL #35252 OUT: DCW1'JLI:

r'!-\2342 \2}

u.s. NAVAL CRIMINAL INVESTIGATIVE SERVICE

INVESTIGATIVE ACTION 03DEC04

CONTROL: 24JUN02-DCWA-0307-4GNA

I/NAVAIRSYSCOM, PATUXENT RIVER, MD/POSSIBLE PROCUREMENT IRREGULARITIES WITH THE DEVELOPMENT OF THE MODULAR COMMAND CENTER (MCC)

ONR BRIEFING

2. During the meeting, RA briefed attendees on the pending status of the investigation and potential civil and criminal action(s) under review by the U.S. Attorney's Office, District of Hawaii. IIIIIIIIIt expressed concern with the length of this process. However, RA related to ....... that all appropriate avenues would be considered to expedite concluslons to the matters of this investigation.

3. During the meeting, __ disclosed that_has been accepted into a doctoral (PHD) program with the University of Hawaii (UOH) starting sometime in _.;January 2005. ~ indicated that ONR is considering supporting~participation in this program.

~tressed that_would not have any procurement responsibilities for ONR during the academic periods she is enrolled in the PHD Program at UOH.

REPORTED BY:

OFFICE:

DC

FOR OFFJIII!!!!sE ONLY

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WARNING

THIS DOCUMENT IS fHE PROPERTY OF THE NAVAL CRIMINAL INveSTIGATIVE SERVICE COI"ITENTS MAY BE DISCLOSED ONLY TO PERSONS WHOSE OFFICIAL DUTIES REQUIRE ACCESS

HERETO. CONTENTS MAV NOT BE DISCLOSED TO THE PARTVCSI rl\l..I,-.rnL,rn .,tIT.ln.,T ~1lr:r-lrEr '69.1

AUTHORIZATION FROM THE NAV,"L CRIMINAL INVESTIGATIVE SE Exhibit (84-)

840889 09:23 20041~

0S>EMAIL #35251 OUT:DCWI '\:2(9

t.i

U.S. NAVAL CRIMINAL INVESTIGATIVE SERVICE

INVESTIGATIVE ACTION OBDEC04

CONTROL: 24JUN02-DCWA-0307-4GNA

I/NAVAIRSYSCOM, PATUXENT RIVER, MD/POSSIBLE PROCUREMENT IRREGULARITIES WITH THE DEVELOPMENT OF THE MODULAR COM~1AND CENTER (MCC)

REQUEST FOR AUDIT SUPPORT.

1. On 7 December 2004, NClS Field Office (Nc:;lSFO) Washington submitted a written request for audit assistance for captioned investigation to the De f'nns e Contract Audit Agency (DCAA) , La Mirada, CA. Details for the request are provided in Enclosure (A),

ENCLOSURE

(A) NCISFO Washington Facsimile Cover Sheet and attached NCISFO letter for audit assistance/7 December 2004

REPORTED BY:

OFFICE:

NClSFO WASINGTON DC

FORO <USE ONLY

Page 1 ~~;s~ S V2 LNY

WARNING

THIS DOCUMENT IS THE PROPERTY OF THE NAVAL CRIMINAL INVESTIGATIVE SERVICE CONT£IITS MAY 9E OISCLJS£D ONLY TO PERSONS WHOSE OFFICIAL DUTIES REQUIRE Access 2f) () HERETO. CONTENTS MAY NOT BE DISCLOSED TO THE PARTYIS) cnNr<p"'n WIT""IIT ".FI"!Flr • ..Tlo(_

AUTHOniZATIDN FROM nlE NAVAL CRIMINAL INVeSTIGATIVE 5 Ex h ih it (~~)

· -_JCIS~ .( ashington

NelS Field Office Washington 1014 N Street SE,_ Suite 1002

Building # 200, Washington NavY Yard _ Washington, DC 20374

To:

Investigative Audit Support DCAA

Western Regional Office

From: &Al4C •••• NCIS Washington DC

F8Xl 714-228-7031

Pages: 3

Date: 121712004

Re: .Audit Support Request

cel [Click here and type name]

o Urgent x For Revl.w 0 PI ... e Comm.nt x Pie ... Reply 0 Pi .... Recycl.

e Comments: Please see the attached request for DCM audit support. Mail copy will follow. I appreciate your consideration of this request

Enclosure (A )

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DHARTMENT OF THE r._Vv

~3"'L ;':~M~'::,AF~:~:_~1~':t~~'::o~ ilC~ \j)

1014 N STREET SE SUITE 102 WASHINGTON NAVY YARD DC 20374-5008

NCISFO-WA 1030 DC23-U0198 07DEC04

From:

Special Agent In Charge, Washington Field Office

To:

~J:~nl"'u" I Director

Defense Contract Audit Agency, Western Regional Office 16700 Valley View Avenue, Suite 30b

La Mirada, CA 90638-5830

Subj:

REQUEST FOR AUDIT ASSISTANCE

1. This is a request for audit assistance for an investigation initiated in June 2002 concerning labor mischarging affecting two U.S. Navy Grants. The affected grants are # N00421-01-1-0176 (# 01-1-0176) awarded by the Naval Air Systems Command. Patuxent River, MO; and grant # N00014-01-1-0562 (# 02-1-0562) awarded by the Office of Nava" Research (ONR). Arlington, VA. Both grants were awarded to the University of Hawaii (UOH). Work for the grants was performed in Hawaii by. personnel of the Research Corporation of the University of Hawaii (RCUH). RCUH is a scientific research agency affiliated with the UOH.

2. This investigation began from a Naval Inspector General (NAVINSGEN suspected adultery and travel issues inv'Ool'~v~in========

Until his retirement~as a1 _ _ .

- . F l Washington Navy Yard. During the - March

,a:arUAn as th of Task Force 76 (CTF-76), Amphibious

Arrmhibi()us Force Seventh Feet, White Beach, Okinawa, Japan. While at

CTF-76 became active in the Modular Command genter (M

program. The Office of Naval Research (ONR) Program Manager for' MCC

_a GS-15 civilian. Fenton's alleged relationship was a focus

of a NAVINSGEN inquiry. The initial focus of this concerned

W'c."nrran association with Pacific Research Institute (PRI). It was

suspected have benefited from this reported association with

PRI via a proposed NAVAIR contract (award # N00421-02-D-3151 (# 02-0-3"151)) to the RCUH funded through ONR (Fenton). RCUH proposal documentation identified PRI as a management division of RCUH. However, the investigation thus far has not developed evidence of a criminal violation b~now retired).

3. The investigation has continued with a focus on possible false claims issues

connected with three RCUH staff hired at the direction of ONR~) with

the concurrence of RCU . three RCUH

. . '-.' .. ) ) .'"7y

. (~ ... V

personnel.......... re all hired at salaries

exceeding $100,000 per annum. A review of the fiie for proposed NAVAIR contract # 02~D~3151 identified all three with involvement with the RCUH submissions for the proposed contract award. However, RCUH records show that labor for the three personnel were fully charged to the two U.S. Navy grants. It is suspected that through the University of Hawaii, RCUH submitted false claims for payment of the proposal labor and related travel costs for these three personnel, as direct labor costs to the two U.S. Navy grants. During July 2003, investigative results for this case were provided for review to the U.S. Attorney's Office, Hawaii District.(USA Hawaii).

4. Pursuant to the continuing review and evaluation of this case by the USA Hawaii for criminal prosecution ancj/or civil action, audlt assistance frClfl1_pCAA is needed. . Assistance needed .includes a review of all case records obtained pertaining to the suspect labor charges during the 2001 - 2002 period.

~o determine the cost impact for the mischarging. SA

~ is the point of contact for this matter at this office. (808~

•••• is the point of contact at the NelS Hawaii Field Office to access the case records for the OeM audit review.

b1C.

2

840898 09:27 20041~

(~DEMAIL #35260 OUT:DCWI

t

~22347 C.1;1

u.s. NAVAL CRIMINAL INVESTIGATIVE SERVICE

INVESTIGATIVE ACTION 08DECD4

CONTROL: 24JUN02-DCWA-0307-4GNA

I!NAVAIRSYSCOM, PATUXENT RIVER, MD/POSSIBLE PROCUREMENT IRREGULARITIES WITH THE DEVELOPMENT OF THE MODULAR COMMAND CENTER (MCC)

CONTACT WITH DCAA

1. On 8 DEC04, reporting agent contacted~'_. Investigative Audit Support, Defense Contr~CAA) Western Regional Office, La Mirada, CA, concerning the NCISFO Washington DC request for audit support for this investigation.

tlllllllilitrequested that the relevant case reports and related records for this case be sent to her office for an initial audit advised that for significant future case events, r options to provide more direct audit support in

Hawaii.

BIOGRAPHICAL DATA:

Title:

Address:

Investigative Support, DCAA western Regional Office 16700 Valley View Ave. Suite 300

Mirada, CA 90638-5830

Telephone:

REPORTED BY:

OFFICE:

NCISFO WASHINGTON DC

FOR OFIJIIIIIII!.SE ONLY

Page 1 LAST _ V2 LNY

WARNING

THIS DOCUMENT IS THE PROPERTY OF THE NAVAL CRIMINAL INVESTIGATIVE SERVICE CONTENTS MAY BE DISClOSED ONlY TO PERSONS WHOSE OFFICIAL Ol1TlES REOUIRE ACCESS

HERETO. CONTENTS MAY NOT BE DISCLOSED TO THE :PARTYI~I rnAlrj:A~.n:n ..... IITI.m.tT CDcr.trf'" 6q (0

AUTHORIZATION FROM THE NAVAl CRIMINAL INVESTIGATIVE E xhib it

840894 09:25 20041'1 1

.?9EMA1L #35256 OUT: new. '00

~2344

u.s. NAVAL CRIMINAL INVESTIGATIVE SERVICE

INVESTIGATIVE ACTION 14DEC04

CONTROL: 24JUN02-DCWA-0307-4GNA

I/NAVAIRSYSCOM, PATUXENT RIVER, MD/POSSIBLE PROCUREMENT IRREGULARITIES WITH THE DEVELOPMENT OF THE MODULAR COMMAND CENTER (MCC)

REQUEST FOR INSPECTOR GENERAL, DEPARTMENT OF DEFENSE SUBPOENA

1. On 14 December 2004, reporting agent submitted a request to th~ Office of the Inspector General, Department of Defense (IG, DOD) for an IG subpoena for documents from the Research Corporation of the University of Hawaii (RCUH). The request is for documents and records needed for a continuing investigation concerning suspected labor mischarging by RCUH involving three staff personnel affecting two identified U.S. Navy grants, Enclosure (A) details.

ENCLSOURE

(Al NCISFO WASHINGTON MEMORANDUM FOR SUBPOENA TO THE OFFICE OF THE INSPECTOR GENERAL, DEPARTMENT OF DEFENSE/13DEC04

REPORTED BY:

OFFICE:

NCISFO WASHINGTON DC

FOR~EONLY

Page 1 LAST" V2 LNY

WARNING

THIS DOCUMENT IS THE PROPERTY OF THE NAVAL CRIMINAL INVESTIGATiVe SERVICE CONTENTS MAY BE DISCLOSED ONLY TO PE~SONS WHOSE OFfiCIAL DUTIES ~EOUJRE ACCESS

HERETO. CONTENTS MAV NOT 8E DISCLOSED TO THE PARTVI~I ~n~r'R~.n wmmllT SPECIFIC ~q "i-'

AUTHORIZATION fROM THE NAVAL CRIMINAL INVESTIGATlVI Exhibit~')

!o·.·········

'." .

l'"

....

DEPARTMENT OF THE NAVY Naval Criminal Investigative Service Field Office-Washington

10 I 4 n Street SE Suite 1002 Washington Navy Yard DC 20374-5008

December 13, 2004

MEMORANDUM FOR SUBPOENA PROGRAM MANAGER, OFFICE OF THE INSPECTOR GENERAL, DEPARTMENT OF DEFENSE

SUBJECT: Request for Inspector General Subpoena

1. Case agent's name I:> ,c.

2. Case agent's phone number: 202"_

3. Case agent's fax number: 202-433-2532

4. Case agent's street address: NCIS Field Office Washington 1014 N Street SEI Suite 1002

Building # 200, Washington Navy Yard Washington. DC 20374

5. Case file number:

24JUN02-DCWA-0307-4GNA

6. Subject(s) of the investigation: Research Corporation of the University of Hawaii (RCUH)

7. Date investigation opened: 24 June 2002

8. Name of case agent's supervisor who has read this request and approves: •••

9. Is this a substantive investigation rather than a preliminary inquiry or developmental file?

This is a substantive investigation.

10. Statute(s) or UCMJ article(s) believed to be violated:

- 18 U.S. Code. SacHon 286 (Conspiracy to defraud the

Government with respect to claims)

- 18 U.S. Code. SecHon 371 (Conspiracy to defraud United States)

- 18 U.S. Code, Section 1343 (Fraud by Wire)

- 31 U.S. Code, SectIon 3729 (Civil False Claims Act)

11. Source and reliability of initial information:

Current RCUH records obtained and information provided by witnesses

12. Summary of information obtained/evidence collected to date suggesting statutes were/are being violated:

Enclosure (A) b't~

)

This investigation began in June 2002 from a Naval Inspector General

suspected and travel issues

;=.~D:u~ring the 2000 - Ma'ar·c1h·2·00·2- Task

Force 76 (CTF-76), Amphibious Group One, Amphibious Force Seventh Feet. White Beach, Okinawa, Japan. While at CTF-76~came active in the Modular Command Center (MCC) program. MCC is an expeditionary network command and control effort to integrate several sensor technologies to enhance Navy Command Center capabilities. The Office of Naval Research (ONR) Program Manager for MCC is~ GS-IS civilian._leged relationship with

a focus of the NA VINSGEN inquiry. The initial focus of this investigation conceme~eported association with Pacific Research Institute (PRI). It was suspected tha~iglifllave benefited from this reported association via a proposed MCC related NA V AIR contract (award # N00421-02-0-31 5 1 (# 02-0-3151» to the Research Corporation of the University Of Hawaii (RCUH) funded through O~. RCUH proposal and related documentation identified PRI as a management division of RCUH that was to be headed by ••• bllowing his retirement from the Navy at an annual salary of$2S0,000. However, RCUH withdrew their proposal for contract # 02·1)..315 I in August 2002 just prior to the award announcement. The investigation thus far has not developed evidence of a criminal violation b'_' (now retired).

VINSGEN) inquiry for Until his

The investigation continued with a focus on suspected false claims issues connected with three RCUH

staff personnel hired at the direction of with the concurrence of

....... - .... The three RCUH personnel

all hired during 2001 at salaries exceeding $100,000 per annum. A of the file for NA

contract # 02-0-3151 identified all three with some involvement with the proposal submissions for the proposed contract award to RCUH. Additionally, related RCUH records show that during April 2002

the RCUH Pos~ for the position of Executive Director ofPRI, and

the evaluation o~ application for the proposed position. However, RCUH records show that labor for the three personnel were fully charged to two U.S. Navy grants. The records further show that through the University of Hawaii, RCUH submitted claims for payment of the

suspected proposal labor and related travel costs for these three personnel, as direct labor costs to the two U.S. Navy grants.

RCUH records show that harged 100% of his labor to NA V AIR. Grant # N00421-

01·1-0176 (# 1"0176) during the July -December 2001 period. During August 2002 __

-.was interviewed. said that most (95%) his work was done to support_

and was not grant related. ..• said that the Navy grant «# 1-0176) was used as a vehicle to

pay for his work fo __ said he developed a proposal for POI (pacific Operations

Institute) as an initial organizatiOiiili"ftamework for 11at later evolved into PRI as an

organizational concept from meetings (ONR MidP AC

subordinate to-'

NA V AIR Contract Specialist was interviewed during March 2003 concerning

NA V AIR Grant # 1-0176. _indicated the matter of charging to this grant

became known during the development of the proposed contract to ReUH. However,

_said that had ~ impression th_ was charging only a

portion of this time to this grant.~aid that any contract proposal work for RCUH should have been charged to an Overhead or B&P (Bid and Proposal) account.

During February 2003, ~as interviewed.~eported tha MIas

hired to work under a Navy Grant for the UESA (UHF ElectroiiIC'illYScanned Array) project

b,.c:.

2

)

(ONR Grant # N00014-01-1-0562). Bu_ contended that vas unqualified for

the work.~serted th~repared 80% of the RCUH technical proposal, and provided 50% of the cost data submitted for the RCUH proposal for contract # 02-0-3151. As suppo~rovided historical email records showin~ direct involvement with him in assemblmg the RCUH contract proposal submissions.

During July 2003, an analysis ofNAV AIR grant # 01-1-0176 was completed. The review surfaced email records showin~nvolvement in getting $100,000 added to the grant via modification # P00005 (June 2002) to keep_"mployed under this grant.

During January was interviewed concerning his RCUH labor charges.

RCUH records show full labor to NA V AIR Grant # 1-0176 during the

November 2001 - September 2002 period, However_maintains that his efforts for the RCUH contract proposal were done working after hours.

Several attempts have been made to intervie~ without success. RCUH records reflect that

• ; was hired as a "directed employee" at RCUH from a 20 December 2001 letter request by ONR

MidPAC official~(supra). RCUH payroll records for~how that during the December 2001 - ~lliabor by_was for RCUH Pro:rectr 65738 (ONR Grant # NOOO 14-0 1-1-0562).

13. Coordination with prosecutor? Results?

Assistant U.S. Attorney (AUSA) Michael Seabright (Criminal Division) and AUSA Harry Vee (Civil Division) are monitoring the results of this investigation. Both are assigned to the U.S. Attorney's Office, Hawaii District. Decisions have not been reached on criminal andlor civil actions from the results of this investigation.

14. Have subpoenas been issued previously in this investigation? If so, please explain. No.

15. What is the DoD nexus to the records being sought (e.g., they pertain to a DoD contract, a DoD employee of military service member)?

The requested records concern suspected fraud involving two U.S. Navy grants awarded to the University of Hawaii (supra), and possible criminal conspiracy violation(s) connected with the RCUH submissions for proposed Navy contract # N00421-02-D-3151.

16. What is the time period for the records sought (specific beginning and ending dates)? How are these dates relevant to your investigation?

The time period for the records sought is from 1 June 2001 through 31 December 2002. This is the time period the labor charges and_ were mischarged

to the identified two Navy grants. The time period for RCUH submissions for proposed contract

# # N00421-02-D-3151 is 1 June 2001 through 31August 2002.

17. If the case pertains to a contract, which organization was the contracting authority, what is (are) the contract nurnber(s), what is (are) the period(s) of performance, and what goods or services are/were procured?

3 ~OO

@

.

.

,

Navy Grant # N00421-01-1-0176:

Awarded by the Naval Air Systems Command, Naval Air Warfare Center, Aircraft Division (NAWC, AD), Patuxent River, MD. This grant was awarded to the University of Hawaii to investigate theaterwide collaborative tracking techniques to develop a foundation for constructing sensor networks. The period ofperfonnance was from July 2001 through 2002. This is a research grant with no specific deliverables required.

Navy Grant # NOOOI4-01-1-0562:

Awarded by the Office of Naval Research, Arlington, VA. This grant was awarded to the University of Hawaii; Electrical Engineering Department to develop hardware prototypes aimed at enhancing future Theater Air Missile Defense (TAMD) capabilities. The period of performance for this grant was 1 September 2001 through 31 August 2003. This is a research grant with no specific deliverables required.

Proposed Contract # N00421-02-D-3151:

The awarding activity for this proposed contract was the Naval Air Warfare Center, Aircraft Division (NA WC, AD), Patuxent River, MD. The Research Corporation of the University of Hawaii (RCUH) was the proposed contractor for this procurement. This proposed contract was for development of sensor integration and communication technologies in accordance Statement of Work (SOW)

requirements specified with issued Delivery the RCUH technical

official identified for the RCUH contract proposal. the Project Manager and

Subcontract Plan Administrator identified in the RCUH contract proposal. On 19August 2002, RCUH withdrew their proposal for this contract just prior to the award announcement.

18. What is (are) the proper legal name(s) of the subpoena recipient(s), to include the type of business entity (sole proprietorship, partnership, corporation) if applicable?

RCUH is a State agency, established by the Hawaii Legislature in 1965. RCUH is attached to the University of Hawaii for administrative purposes. RCUH operates as a service bureau for its clients, which include the University of Hawaii, its major client. Because of its exemption from state statutes such as those relating to procurement and personnel, RCUH functions like a business. RCUH is selfsupporting and operates from fees charged for its services.

19. What is the street address of the subpoena recipient?

Research Corporation of the University of Hawaii 2800 Woodlawn Drive, Suite 200

Honolulu, Hawaii 96822

20. Why do you believe the subpoena recipient has the records you request?

RCUH has experience in working federal contracts and grants for Navy research and development programs and initiatives. As such, it is likely that RCUH maintains records and has an accounting system capable of producing the documents required by this subpoena request.

4 \)..0\

)

21. Is the subpoena recipient a bank, credit union, savings and loan, or credit card issuer? If'so, what is the full name and Social Security number of the account holder; or, what account number(s) is (are) involved? N/A

22. If the subpoena recipient is not a financial institution, is there another account number or numbers involved? Please list.

For accounting purposes, RCUH has assigned Project # 657764 for the work/costs recorded for grant # N00421-01-1-0176

For accounting purposes, RCUH has assigned Project # 65738 for the work/costs recorded for grant # NOOO 140 1-1-0562

23. Are the records sought already in the possession ofa Federal government agency? If yes, identify the Federal agency and the rationale for issuing a subpoena for records we (the government) already have. Unknown

24. Have the records sought already been obtained through a search warrant or grand jury subpoena?

Explain if necessary.

No. However, we have obtained some preliminary RCUH records for this

case from formal NCIS letterhead correspondence to RCUH. These records include:

RCUH Time Sheet and Business Travel Records for r nd 2 &

University of Hawaii claims (SF 270's) submitted for grant # N00421-01-1-0176 (See Appendix, Item # D)

RCUH Personnel Files for an~

25. Do you have any reason to believe this subpoena will be challenged? No.

26. How will the records sought assist in this investigation?

The subpoena should produce the records needed to complete a DCAA cost impact audit and help establish any violations offederallaw(s).

27. Will copies suffice, or do you require original records?

Legible copies will suffice

28. Include any other information you believe is important.

This subpoena will be served upon RCUH by an NCIS agent in Hawaii.

29. Individually describe the records, or classes of records you require (subpoena appendix items).

The RCUH records requested are:

Ap_pendix

A) All policy documents in effect during the 2001 - 2002 calendar year periods, for the recording of time/labor on contracts and grants with the federal government.

5

40d-.

B) Chart of Account records for the 2001 through 2002 calendar year periods.

C) An proposal records pertaining to the award of proposed Navy contract # N00421-02-D-31S1 t including but not limited to:

- Proposal work papers and drafts

- Email records relating to the proposal

- All proposal data/files stored on any electronic media maintained by RCUH

- An correspondence, including mail records and facsimile transmissions

All records identifying RCUH personnel involved with writing, assembling. and preparing the RCUH submissions for the proposed contract.

Identification of the internal account number for charging proposal labor for proposed contract

Printouts from the RCUH accounting system(s) showing the proposal labor hours charged by RCUH personnel for the proposed contract, including the following:

o RCUH records showing the total proposal labor hours accumulated for the contract.

o RCUH detail records showing the proposal labor hours charged by each RCUH employee involved with the proposal effort.

D) Printouts from the RCUH accounting system showing labor hours. rates and travel expense details for an ReUH personnel charged to the following SF-270's payment requests submitted by the University of Hawaii under Navy grant # N00421-01-1-0176:

- Payment Request # SS 19467 (1)

- Payment Request # SS 20094 (3)

- Payment Request # SS 20697 (5)

- Payment Request # SS 21298 (7)

- Payment Request # SS 22035 (9)

- Payment Request # SS 22762 (II)

- Payment Request # SS 19821 (2)

- Payment Request # SS 20361 (4)

- Payment Request # SS 21099 (6)

- Payment Request # SS 21659 (8)

- Payment Request # SS 22411 (10)

- Payment Request # SS 23137 (12)

E) All SF-270 payment requests submitted by/through the University of Hawaii under Navy grant # N000014-01-1-0562, and related detail records showing labor hours, rates and travel expense details for all RCUH personnel charged for each SF-270 payment request for the 1 December 2001 through 31 December 2002 period.

Include the following documents with this request:

Plus, if the Right to Financial Privac_y_ Act (RFPAl applies':
• Privacy Act notice • Statement of Customer Notice
• Subpoena cover letter • Statement of Customer Rights
• Certificate of compliance • Instructions for completin~_ motion and sworn statement
• Blank Customer Motion form I Generally, the RFPA applies of the subpoena recipient is a bank, savlngs.and loan, credit union, or credit card issuer and the account holder is an individual or partnership of fiver or fewer people (see 12 U.S.C. 3401 et seq.).

6 UO?::'

• Blank Sworn Statement form
• Certificate of Service form
• Certificate of ComJ!liance (with the RFPA_l 840900 09:28 20041-) T.T.:QrEMAIL #35262 OUT: DCW' \ '~j2349

u.s. NAVAL CRIMINAL INVESTIGATIVE SERVICE

INVESTIGATIVE ACTION 16DEC04

CONTROL: 24JUN02-DCWA-0307-4GNA

I/NAVAIRSYSCOM, PATUXENT RIVER, MD/POSSIBLE PROCUREMENT IRREGULARITIES WITH THE DEVELOPMENT OF THE MODULAR COMMAND CENTER (MCC)

COORDINATION WITH DCAA

1. On 16 December 2004, reporting agent completed assembly of a compilation of NCIScase reports, and related documentation obtained from the Research Corporation of the University of Hawaii (RCOH). The compilation of reports and records was effected to help initiate the coordination of an NCIS Field Office Washington DC request for audit support for this case from the Defense Contract Audit Agency (DCM) .

2. The assembled NCIS case documentation and related records were

mailed this same date via certified mail t Chief

of Investigative Audit Support, La Mirada, documentation sent to DCAA for audit review

Copy of 21 July 2003 NCISFO Washington DC ROI and Enclosed Investigative Summary Report and the following:

Sub enclosures 3 - 7
Sub enclosures (11) - (22)
Sub enclosure (32)
Sub enclosure (35)
Sub enclosure (42 ) Copy of a pending IG, DOD subpoena request for additional RCOH records required to complete the audit work required for this investigation.

REPORTED BY:

OFFICE: NCISFO WASHINGTON DC

FOR OfIIIIIIII!uSE ONLY

Page 1 LAST" V2 LNY

WARNING

THIS DOCUMENT IS ''fiE PROPERTY OF THE NAVAL CRIMINAL INVESTIGATIVE SERVICE CONTENTS MAY BE OISCLOSEO ONLY TO PERSONS WIiOSE OffiCIAL OUTIES REQUIRE ACCESS S HE.RETO. CONTENTS MAY NOT BE D.SClOSEO TO THE ,pARTYfSJ I"'n"'''C'ID'_I~n UIlTU/''II1T C'DI:t"II:If'" 4 0

AUTIiOR;lATION FAOM TIiE NAVAL CRIMINAL INVUTlGATlVE S E xh i hit {Q ~ '\

.1111: ;:;'.f.l:!.lYJJ-I.J..Lo 1t")-J':' Ul. vVJ.. U ..... VWl . '"

..L.IJ._J.:J.:J n£...L...,J"'1U "'fi'

~,~~# .

u.s. NAVAL CRIMINAL INVESTIGATIVE SERVICE

INVESTIGATIVE ACTION 16DEC04

CONTROL: 24JUN02-DCWA-0307-4GNA

I/NAVAIRSYSCOM, PATUXENT RIVER, MD/POSSIBLE PROCUREMENT IRREGULARITIES WITH THE DEVELOPMENT OF THE MODULAR COMMAND CENTER (MCC)

REVIEW OF NAVAL INSPECTOR GENEERAL REPORT

was initiated from a Naval adulte~y and Until

During the 2000 - March

2002 period, 4I ...... 1l of Task Force 76

(CTF-76), ous One, Amphibious Force Seventh Feet, White

Beach, Okinawa, Japan. While at CTF-76, became active

in the Modular Command Center (MCC) program. MCC is an expeditionary network comma~d and control effort to integrate several sensor technologies to enhance Navy Command Center capabilities. The Office

of Naval Research (ONR) Program Manager for MCC Ls a

GS-15 civilian. alleged relationship with was

a focus of the NAVINSGEN inquiry. The initial focus of this

investigation concerned reported association with

Pacific Research Institute (PRI).

2. ' During the investigation, a copy of the 13 November 2002 report for the separ at e NAVINSGEN inquiry was reviewed for relevance to the continuing NCIS investigation. The NAVINSGEN inquiry concerned five

(5) allegations involving However, allegation ~1

deta~led in the report is the issue having possible relevance to this ~ontinuing NClS inquiry:

.,.

Allegation (#1): That during and subsequent to his tour of duty as Commander of CTF-76/CPG-l, ......

........ IIII~~engaged in adulterous activity with ••••••••••• GS-15, in violation of Article 134, Uniform Code of Military Justice.

Highlights of the findings of the NAVINSGEN inquiry for this allegation are:

............... andtlllilitworked together continuously

since 1998;

Between September 2000 and March 2002,~visited Okinawa, Japan ten times and frequently stayed in a BOQ room

next to assigned room;

Government cellular phone records obtained for t~ inquiry show almost daily communication between ...............

FOR OF~E ONLY Page 1

WARNING uO(a

THIS DOCUMENT IS THE PROPERTY OF THE NAVAL CRIMINAL INVESTIGATIVE SERVice CONTENTS MAV BE DISCLOSED ONLY TO PERSONS WHOSE OFFICIAL OUTIES REOUIRE Access HERETO. CONTENTS MAV NOT BE DISCLOSED TO THE PARTYISl CONCERNFn WITHnI,T ~p.(".'r

/IIITHDRIZATION FROM THE NAVAL CRIMINAL INVeSTIGATiVe E xhib it 97)

24JUN02-DCWA-0307-· lA

~ ~~J;jJI I/NAVAIRSYSCOM!PA1'UXENT RIVER, MD/POSSIBLE

U.S. NAVAL CRIMINAL INVESTIGATIVE SERVICE

'{'V,

'··""l

PROCvRrii1ENT IRREGUL

SUBJ:

and •••

The NAVINSGEN inquiry did not develop direct evidence that 1IIIIIIIIIIIIIlcommitted adultery withtlllllll ..

However, the inquiry reported sufficient evidence was developed to cause a reasonable person to believe that till .... "1I1I"~was involved in an inappropriate relationship with a woman other than his wife.

3. Complete-details for the NAVINSGEN inquiry are provided in Enclosure (A).

Enclosure

(Al NAVINSGEN Report of Investigation - Case # 20020029/13 November 2002

REPORTED BY:

OFFICE:

NCISFO WASINGTON DC

FOR OFFICI~ONLY

Page 2 ~-_V2LNY

WARNING

THIS DOCUMENT IS THE PROPeRTY OF THE NAVAL CRIMINAL INVESTIGATIVE SERVICE COIolT~NTS MAY BE DISC~OSEO ONLY TO PEfiSOIoiS WHOSE OFFICIA~ DUTIES REQUIRE ACCESS

AUTHORIZA TIQN FROM THE N ...... AL CRIMINAL INVESTIGATIVE SERVICE.

HERrro. CONTENTS MAY NOT Bi DISCLOSED TO THE PARTY{SJ CONCEfIIlED WITHOUT SPECIFIC

l\Ol'

NAVAL CRIMINAL INVESTIGATIVE SERVICE

DELETED PAGE INFORMATION SHEET

Page(s) --=:::I4~Q:..:::=8'__-- G=:1..._q~~=_____ __ ~-------

withheld entirely at this location. One or more of the following explain this decision:

Deleted under exemption(s) _

T Documents originated with other government agency{ies).

Referred for review and direct response to you.

___ Pages contain information furnished by other government agency(ies). We will advise you ofreleasability ofinfonnation following consultation with agency(ies).

'Ci:mJrnerifs: -- NCiu'sX - .I¥\:;'~~k1' G~·;QA-..Ju -.- - .. -- ... - q: .....

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