Former United Nations Employee Charged in Connection with a $100,000 Fraud Scheme Involving Concurrent Jobs

WASHINGTON — A former employee of the United Nations (U.N.) was arrested today for allegedly obtaining more than $100,000 in salary payments as a result of holding jobs at the U.N. and the National Labor Relations Board (NLRB) at the same time, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.

Jeffery K. Armstrong, 51, of South Riding, Va., was charged in a nine-count indictment unsealed today in the Eastern District of Virginia with wire fraud stemming from a scheme to defraud the U.N., an international organization committed to humanitarian and peace-keeping efforts, and the NLRB, an independent agency of the U.S. government.  

According to the indictment, in March 2008 Armstrong took a leave of absence from his position as a supervisory security specialist with the Department of the Army to accept a full-time position at the U.N. in New York City.   As an assistant chief of the Security and Safety Service within the Department of Safety and Security at the U.N., Armstrong was responsible for all physical security of U.N. facilities in New York City, among other functions.   According to the indictment, Armstrong received an annual salary from the U.N. of approximately $160,000.   The indictment alleges that in February 2009, after working at the U.N. for almost a year, Armstrong applied for a position as chief of the security branch within the Division of the Administration at the NLRB in Washington, D.C.   According to the indictment, Armstrong began work at the NLRB on April 13, 2009, with an annual salary of approximately $121,000.

The indictment alleges that between the middle of April and the end of September 2009, Armstrong was an employee of both the U.N. and the NLRB, receiving more than $100,000 in salary payments from the two entities.   Armstrong allegedly concealed his dual employment from both employers by, among other things, dissuading NLRB personnel from contacting his supervisor at the U.N., submitting incomplete or inaccurate employment forms to the NLRB, and causing to be mailed to the NLRB false correspondence suggesting that he no longer worked at the U.N.   In addition, Armstrong allegedly submitted medical leave documentation to the U.N., indicating that he was unable to work and was undergoing medical treatment, despite his full-time employment at the NLRB.   According to the indictment, Armstrong failed to notify his superiors at both entities of his concurrent employment.

Armstrong made his initial appearance this morning before U.S. Magistrate Judge Theresa C. Buchanan in Alexandria, Va.   Arraignment is scheduled for July 7, 2011, before U.S. District Judge Gerald B. Lee.

If convicted, Armstrong faces 20 years in prison and a fine of $250,000 on each wire fraud count.

The case is being prosecuted by Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Karen L. Dunn of the U.S. Attorney’s Office for the Eastern District of Virginia.   The case was investigated by the FBI’s Washington Field Office and the NLRB Office of Inspector General.

An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.