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| Federal grand jury indicts former GSA official on charges of fraud | Federal grand jury indicts former GSA official on charges of fraud |
| (35 minutes later) | |
| A former government official at the center of the General Services Administration’s Las Vegas conference scandal faces criminal charges after a federal grand jury indicted him on five counts of fraud Thursday. | A former government official at the center of the General Services Administration’s Las Vegas conference scandal faces criminal charges after a federal grand jury indicted him on five counts of fraud Thursday. |
| Prosecutors from the U.S. attorney’s office for the Northern District of California said former GSA Western Regions Commissioner Jeffrey E. Neely fraudulently sought reimbursement for personal travel and expenses by submitting false claims. | Prosecutors from the U.S. attorney’s office for the Northern District of California said former GSA Western Regions Commissioner Jeffrey E. Neely fraudulently sought reimbursement for personal travel and expenses by submitting false claims. |
| Only two counts relate to the 2010 Las Vegas conference. The others are linked to trips he made to Long Beach, Calif, Guam and Saipan. | Only two counts relate to the 2010 Las Vegas conference. The others are linked to trips he made to Long Beach, Calif, Guam and Saipan. |
| The indictment alleges that Neely, 59, of Gardnerville, Nev., also lied when GSA employees questioned him about the spending, saying it was for government business. Neely did not respond to a request for comment Thursday. | |
| Details of the lavish Las Vegas conference surfaced with a 2012 inspector general’s review that found the formal official had organized an $800,000 training event for 300 employees. The Washington Post first reported the watchdog findings. | |
| Neely had planned for the 2010 employee conference to be “over the top,” the report said. Conference events included a magician and a $75,000 bicycle-building exercise. There were also questionable contracting practices. | |
| GSA placed Neely on administrative leave in April 2012. He left the agency the next month. | GSA placed Neely on administrative leave in April 2012. He left the agency the next month. |
| Former GSA Administrator Martha Johnson resigned from the government after the scandal emerged in April 2012, and two of her top deputies were fired that month as well. | Former GSA Administrator Martha Johnson resigned from the government after the scandal emerged in April 2012, and two of her top deputies were fired that month as well. |
| Neely invoked the Fifth Amendment when called to testify before a House oversight committee in April 2012. He also failed to appear at hearing the next day with the House Transportation and Infrastructure Committee. | Neely invoked the Fifth Amendment when called to testify before a House oversight committee in April 2012. He also failed to appear at hearing the next day with the House Transportation and Infrastructure Committee. |
| Neely is scheduled to make his first court appearance on Oct. 20. If convicted, he faces up to five years in prison and a fine of $250,000 for each violation. | Neely is scheduled to make his first court appearance on Oct. 20. If convicted, he faces up to five years in prison and a fine of $250,000 for each violation. |
| Former GSA Inspector General Brian D. Miller, whose report uncovered the Las Vegas scandal, said in response to Thursday’s indictment that high-level officials should not abuse the trust and discretion they are given. | Former GSA Inspector General Brian D. Miller, whose report uncovered the Las Vegas scandal, said in response to Thursday’s indictment that high-level officials should not abuse the trust and discretion they are given. |
| “Senior executives set an example for everyone in an agency,” Miller said. “If they are cutting corners, fudging facts, or cheating even in small things, it sends a message that it’s okay to for everyone to do these things.” | “Senior executives set an example for everyone in an agency,” Miller said. “If they are cutting corners, fudging facts, or cheating even in small things, it sends a message that it’s okay to for everyone to do these things.” |
| * Joe Davidson and Lisa Rein contributed to this article. | * Joe Davidson and Lisa Rein contributed to this article. |