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STATEMENT OF WILLIAM S LYNCH BEFORE THE SUBCOMMITTEE ON FEDERAL SPENDING PRACTICES AND OPEN GOVERNMENT OF THE COMMITTEE ON GOVERNMENTAL AFFAIRS - UNITED STATES SENATE ON GENERAL SERVICES ADMINISTRATION INVESTIGATIONS

NCJ Number
65155
Author(s)
W S LYNCH
Date Published
1980
Length
10 pages
Annotation
ACTIVITIES AND PROBLEMS OF THE DEPARTMENT OF JUSTICE'S GSA TASK FORCE ARE DISCUSSED; SUCCESSFUL PROSECUTIONS SINCE THE OCTOBER 1979 REPORT ARE EMPHASIZED.
Abstract
THE GSA TASK FORCE WAS ESTABLISHED AT THE REQUEST OF THEN DEPUTY ATTORNEY GENERAL CIVILETTI IN SEPTEMBER 1978 TO DETERMINE THE EXTENT OF CORRUPTION WITHIN GSA AND TO BRING INDICTMENTS WHENEVER POSSIBLE. SINCE OCTOBER 1979, THE GSA TASK FORCE HAS CONCLUDED TWO SIGNIFICANT PROSECUTIONS BY TRIALS IN THE DISTRICT OF NEW JERSEY AND IN THE EASTERN DISTRICT OF VIRGINIA. IN THE FIRST CASE, ARTHUR S. LOWELL, AN ATTORNEY, WAS CONVICTED OF PARTICIPATING IN A SCHEME TO DEFRAUD THE UNITED STATES IN A MATTER INVOLVING PAINT PROCUREMENT. ANTHONY PIONZIO, A FORMER BRANCH CHIEF AND ACTING CHIEF OF QUALITY CONTROL FOR GSA REGION 2, WAS CONVICTED ON CONSPIRACY IN THE SCHEME AND OF ACCEPTING BRIBES. AT THIS TRIAL, TESTIMONY WAS PRESENTED RELATING TO ALLEGED CORRUPTION IN WASHINGTON, D.C., AND THIS ASPECT IS PRESENTLY UNDER INVESTIGATION. IN VIRGINIA, MR. BLECKER, PRESIDENT OF THE ICARUS CORPORATION, WAS CONVICTED OF DEFRAUDING THE UNITED STATES THROUGH PRESENTATION OF FALSE CLAIMS FOR COMPUTER-RELATED ACTIVITIES. FOR THIS CONVICTION, ALMOST 1 YEAR OF JOINT FBI AND GSA TASK FORCE INVESTIGATIONS WAS NECESSARY. TO DATE, 101 PERSONS HAVE BEEN CHARGED IN FRAUD AND CORRUPTION ACTIVITIES AND 84 HAVE BEEN CONVICTED; 4 CORPORATIONS HAVE BEEN CHARGED AND CONVICTED; AND 3 INDIVIDUALS HAVE BEEN ACQUITTED. IT MUST BE EMPHASIZED THAT IN THE FRAUD AND WHITE-COLLAR-CRIME AREA, PROSECUTIVE ACTIVITY IS LONG TERM AND MAY BEAR RESULTS ONLY AFTER EXTENSIVE INVESTIGATIVE WORK. FOR EXAMPLE, IN THE AREA OF GSA SELF-SERVICE STORES CORRUPTION, INITIAL ANALYSIS STARTING IN 1977 IS PRODUCING PROSECUTIONS IN 1980. SIMILARLY, INVESTIGATIONS OF PUBLIC BUILDINGS SERVICE RECORD IRREGULARITIES, DISCOVERED BY A FINANCE CLERK IN CHICAGO, ILL., IN 1976, ARE NOW SHOWING SUCCESSFUL PROSECUTIVE RESULTS. (LWM)