State Department Contracting Official and Former Government Contractor Indicted for Conspiracy to Commit Wire Fraud and Wire Fraud
ALEXANDRIA, VA—Tony Chandler, 68, of Severn, Maryland, and Marvin Hulsey, 52, of Stafford, Virginia, were indicted by a federal grand jury today on charges of conspiracy to commit wire fraud and wire fraud. Chandler also faces charges for conflicts of interest in the same indictment.
According to the indictment, Chandler was employed by the U.S. Department of State with duties as a contracting officer’s representative in the Bureau of Overseas Buildings Operations. In that capacity, Chandler was responsible for oversight of the contractor that employed Hulsey as a program manager. Apart from his government employment, Chandler was an authorized distributor of nutritional supplements for a multi-level marketing company. From 2008 and continuing into 2010, Chandler earned a commission of sales for nutritional supplements that were sold to employees under Hulsey’s supervision. The employees were reimbursed by Hulsey’s employer for the cost of the nutritional supplements, after which Hulsey, through agreement with Chandler, caused fake invoices to be created and submitted to the U.S. Department of State. Knowing that the cost of nutritional supplements was not an allowable cost, Chandler approved many of the fake invoices in his official capacity, causing the U.S. Department of State to make fraudulent payments back to Hulsey’s employer. Chandler earned a commission from the multi-level marketing company for each sale of nutritional supplements.
In a related case, on April 23, 2015, Gene Goodsell, the former U.S. Department of State supervisor of Chandler, pleaded guilty to a conflict of interest. According to documents filed in that case, Goodsell, who sponsored Chandler as an authorized distributor of nutritional supplements and earned commissions on each sale made by Chandler, became aware that Chandler sold nutritional supplements that were billed to the U.S. Department of State, and despite then knowing of his own personal financial interest in the contract, Goodsell continued to make official decisions concerning the contract.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Steve A. Linick, Inspector General for the U.S. Department of State and Broadcasting Board of Governors; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the grand jury returned the indictment.
This case was investigated by the U.S. Department of State, Office of Inspector General (DOS-OIG) and the FBI’s Washington Field Office. Substantial assistance was provided by the Criminal Analysis Branch of the DOS-OIG. Special Assistant U.S. Attorney Brian D. Harrison is prosecuting the case.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.