A
former FBI special agent and a conspirator pleaded guilty in the
District of Utah yesterday and today to participating in a bribery
scheme to obstruct a grand jury investigation in exchange for the
promise of cash and multimillion dollar business contracts offered by a
businessman under investigation.
Assistant Attorney General Leslie R. Caldwell of the Justice
Department’s Criminal Division, Acting U.S. Attorney Carlie Christensen
of the District of Utah and Justice Department Inspector General Michael
E. Horowitz made the announcement after the guilty pleas were accepted
by U.S. District Judge Tena Campbell.
“No one is above the law, no matter what rank or badge a person might
hold,” said Assistant Attorney General Caldwell. “Corruption by those
entrusted to enforce the law strikes at the heart of our criminal
justice system, and it will not be tolerated. This case lays bare a
disgraceful attempt by a veteran FBI agent to get rich by thwarting an
ongoing investigation. The Justice Department will fight corruption
wherever we find it, even within the ranks of federal law enforcement.”
“These plea agreements demonstrate that Federal law enforcement
officers who sell their badges for cash and frustrate the administration
of justice will be held accountable for their actions,” said Inspector
General Horowitz. “Department employees are held to the highest
standards, and we cannot permit our criminal justice system to be
stained by such bribery and corruption.”
“When a law enforcement officer violates his oath and the public’s
trust by breaking the law, he must be held accountable,” said Acting
U.S. Attorney Christensen. “In this case, former Agent Lustyik’s
decision to enter into a conspiracy to obstruct a significant fraud
investigation in Utah is a troubling reminder that corruption may exist
even among those we entrust with protecting our citizens and upholding
our laws.”
A 24-year veteran of the FBI, Robert Lustyik Jr., 51, of Sleepy
Hollow, New York, pleaded guilty on Sept. 30, 2014, to an 11-count
indictment charging him with conspiracy, eight counts of honest services
wire fraud, obstruction of a grand jury proceeding, and obstruction of
an agency proceeding. A childhood friend of Lustyik, Johannes Thaler,
50, of New Fairfield, Connecticut, pleaded guilty today to conspiracy to
commit bribery, obstruction of a grand jury proceeding and obstruction
of an agency proceeding. Sentencing is scheduled for Jan. 5, 2015.
In court documents and at the plea hearings, Lustyik and Thaler
admitted that from October 2011 to September 2012, Lustyik, while
employed as an FBI counterintelligence special agent, and Thaler
conspired to use Lustyik’s official position to obstruct a criminal
investigation into Michael Taylor, a businessman who owned and operated
American International Security Corporation and was under investigation
for paying kickbacks to obtain a series of contracts from the Department
of Defense worth approximately $54 million. Taylor promised Lustyik
and Thaler that in exchange for their help, he would provide them cash
and multimillion dollar business contracts. Taylor told the two men:
“I’ll make you guys more money than you can believe, provided they don’t
think I’m a bad guy and put me in jail.”
Court documents state that Lustyik attempted to obstruct the
investigation into Taylor by opening Taylor as an official FBI source in
an effort to persuade the FBI, the Justice Department and the
prosecutors and law enforcement agents investigating Taylor that
Taylor’s usefulness as a source outweighed the government’s interest in
prosecuting him. Lustyik also advocated on Taylor’s behalf directly to
the prosecutors and law enforcement agents, urging them to use Taylor as
a cooperating witness and emphasizing that indicting Taylor would
threaten the nation’s security.
According to court documents, while Lustyik was obstructing the
investigation into Taylor, Lustyik suggested that Thaler “blatantly” ask
Taylor for money, emphasizing “he knows we are keeping him outta
jail.” Lustyik explained to Thaler that on his upcoming trip to meet
Taylor in Lebanon, “Taylor is gonna hand you cash in Lebanon,” “[l]ike
150 gs.” When Thaler asked Lustyik how he was supposed to bring that
much cash back to the United States, Lustyik instructed him “[i]n your
pants. Or wire it? They won’t stop 2 white guys at customs without a
reason, [o]r I meet you at customs at JFK and cred you in.”
Court records state that during the conspiracy, Lustyik and Thaler
acknowledged that Taylor was probably guilty, but they boasted about
their success in using Lustyik’s official position to obstruct the
investigation into Taylor, with Lustyik texting Thaler, “at this point
IF he is indicted there is NO WAY he gets convicted even though he Prob
did it.” During the conspiracy, Lustyik texted Thaler, “I think we are
rich by Christmas!!” When Thaler asked why, Lustyik responded, “he
[Taylor] is gonna be free!!!!!!!!”
Taylor pleaded guilty in the District of Utah to honest services wire
fraud for his role in the scheme on Nov. 27, 2013. He is scheduled for
sentencing on Jan. 5, 2015.
The investigation was conducted by Assistant Special Agent in Charge
Tom Hopkins of the U.S. Department of Justice Office of Inspector
General. The case is being prosecuted by Deputy Chief Peter Koski and
Trial Attorney Maria Lerner of the Criminal Division’s Public Integrity
Section, and Trial Attorney Ann Marie Blaylock of the Criminal
Division’s Asset Forfeiture and Money Laundering Section. Scott Ferber
of the Counterespionage Section of the National Security Division also
assisted in the prosecution.