DC Scandal: New Fed CIO is Chief Clueless

by fwinstead | March 15, 2009 at 04:58 pm

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Washington, DC - Vivek Kundra, the Federal Chief Information Officer has not been accused of wrong doing in the FBI's investigation of his former DC government department. Nor, does the year long investigation conducted during Mr. Kundra's tenure as DC's Chief Technology Officer show he did anything right. Mr Kundra is now on leave from his federal position of less than 2 weeks.

OCTO: where Offenders Come Together Often

On Thursday March 12, FBI agents raided the DC government's Office of the Chief Technology Officer (OCTO) after a year long investigation. The Affidavit in Support of Application for Arrest Warrant paints a picture of corruption all too familiar to followers of the DC government with multiple "ghost employee" scams and "buy less pay more" deals with favored contractors. Yusef Erkan Acar who resides at 4904 Arkansas Ave NW, Washington, DC was arrested on bribery charges. Mr. Acar is the city employee responsible for the city government's computer security. Also arrested, Sushil Bansal who resides at 2390 Shreve Hill Rd, Dunn Loring, VA. Mr. Bansal is the CEO of Advanced Integrated Technologies Corporation which has various contracts with the DC government.

*** "All subjects are innocent until proven guilty in a court of law." ***

The affidavit attempts to obscure certain names and locations. But some are obvious. G.A. is Yusef Acar's wife: Galen R. Acar who is also identified as G.R.. A.B. is Archana Bansal, wife of Sushil Bansal. A property owner identified as Z.F. is Zeki Findikoglu.

People still unidentified with page numbers and excerpts from affidavit:

D.L. - page 4: On a form entitled “Business Account Confirmation Document”, dated September 30, 2008 and apparently signed by D.L., the Primary Business Owner for Circle Networks is listed as “[D. L.]/Yusuf Acar”.

S.E. - page 5: One such account, a business checking + interest account, up until September 30, 2008, was captioned “CIRCLE NETWORK OR [D.L] [S.E.] YUSUF ACAR, 143 KENNEDY ST, NW STE 7, WASHINGTON DC 20011-5269.
page 6: ALLNET Systems, Inc. (ALLNET) and S.E. -- S.E. is currently employed by the District of Columbia Office of the Chief Technology Officer and has been so employed since June 12, 2006.

A.S - page 6: On a signature card for this account, dated January 16, 2008, A.S. is listed as the CEO, and the address for ALLNET is listed as 1701 Pennsylvania Avenue NW.

F.A. and S.A. - page 6: Network Osiris and F.A. -- F.A. is currently an employee of the District of Columbia Office of the Chief Financial Officer (OCFO). According to bank records F.A. and his wife, S.A., are Officers for Network Osiris. F.A. worked at OCTO as a contractor beginning in December 2002, and became a full-time government employee at OCTO in or about April 2006. F.A. assumed his current position at OCFO in January 2007.

T.S. - page 7: T.S. has been an employee of OCTO since on or about September 17, 2007. Prior to that, T.S. worked at OCFO from approximately August 1998 to February or March 2000. She then worked at OCTO from approximately February or March 2000 until December 2004. She later worked as a contractor with a private company from approximately February 2005 until September 2007, at which time she became a full-time employee at OCTO.

W.M. - page 7: W.M. has been an employee of OCTO since on or about February 2008. W.M. is an IT Specialist (Security), and is a Government Service (GS) Grade 15 with an annual salary of about $101,000.

E.S. - page 11: E.S. was hired as a contractor for OCTO through AITC in approximately January 2007 to fulfill purchase order number 248102. The project name was HIPAA IT Security. E.S. left OCTO in October 2008.

T.P. - page 17: After the contract was approved, Khalid Rahman contacted T.P., a representative from Company 1.

B.M - page 18: The quote was delivered to “Mr. Yusuf Acar/Mr. B.M.”. The total amount of the quote was $104,166.00.

S.M. - page 28: S.M. is a principal of IITS.

CW is the confidential witness who assisted the FBI. UI means unintelligible.

The Laws: Title 18, United States Code (U.S.C.)

Section 201 Bribery of public officials and witnesses
Section 208 Acts affecting a personal financial interest
Section 371 Conspiracy to commit offense or to defraud United States
Section 1343 Fraud by wire, radio, or television
Section 1346 Definition of "scheme or artifice to defraud''
Section 1956 Laundering of monetary instruments

"Jobs: No Work, No Show"

Ghost Employee Scheme #1 involved a HIPPA project. HIPPA is the Health Insurance Portability and Accountability Act which is supposed to protect the privacy of people's health care information.

Ghost Employee Scheme #2 involved the security of the city's computer firewall with the paid for work never done. In Ghost Employee Scheme #3 unspecified work was never done but still paid for by the city.

The McAfee Scheme continued undermining the the integrity of the HIPPA projects by purchasing 500 software licenses but paying for 2000.

OCFO: Offenders Come From OCFO

The largest financial scandal in DC governement history originated in Natwar Gandhi's Office of the Chief Finacial Officer (OCFO). Yusef Acar claims to have connections to a current OCFO employee(F.A.) for procurement purposes. Natwar Gandhi's recent "solution" to corruption among his employees was to create the postion of Chief Risk Officer, a position not unlike Mr. Acar's.

Kundra's Contribution to Culture
The Peter Principle states "in a hierarchy every employee tends to rise to his level of incompetence." The Dilbert Principle adds: "leadership is nature's way of removing morons from the productive flow." Now we have Kundra's Corollary: "a manager in the spotlight cannot see what is going on around him."

Map showing places in FBI Affidavit or related to investigation.

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