A Virginia man pleaded guilty to one count of mail fraud for his participation in a scheme to defraud the U.S. Department of Defense.
According to court documents, BAE Systems Training Services Inc. (BAE) maintained a procurement contract with the Defense Department during 2005 and 2006. Under the terms of the contract, BAE would purchase surveillance equipment and subsequently bill the U.S. government for those purchases. According to court documents, Jonathan Feeney worked as a logistics engineer at BAE and was responsible for purchasing the items needed under the contract.
Feeney reportedly made secret purchases in BAE's name beginning in August 2005. He admitted that he used his position to authorize the purchase of camera lenses and video equipment, intending to keep the equipment for his personal use but to bill BAE for the purchases. This would in turn cause BAE to use the mail to bill those purchases to the United States. Between Aug. 6, 2005, and June 30, 2006, Feeney admitted he made 15 illicit purchases, totaling $476,424 in fraudulent charges, of which $464,819 was billed to the U.S. government. Feeney subsequently sold many of the purchases on an Internet auction site for profit.