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Felony Judgment Entered Against Former TVA Project Manager For Violation of Federal Conflict of Interest Statute
JULY 23, 2010 – KNOXVILLE, Tenn—A felony judgment was entered against Dennis S. Painter, 60, of Franklin, Tennessee, in federal court today by the Honorable Thomas W. Phillips, United States District Judge. Painter was sentenced to serve one (1) year of probation. This sentence followed Painter's guilty plea to violating the federal conflict of interest statute on January 19, 2010.
On January 11, 2010, the United States Attorney filed an Information in United States District Court charging Painter with violating the federal criminal conflict of interest statute. According to court documents, Painter admitted that from January 1, 2005, through March 30, 2005, he was employed by the Tennessee Valley Authority (TVA) as a technical services project manager within TVA’s economic development section, and his duties included overseeing environmentally friendly development projects and approving invoices submitted by contractors who performed work on the TVA projects he supervised. In the course of performing his official duties Painter personally approved an invoice to TVA in the amount of $8,220.80 from the Center for Economic Development and Resource Stewardship, an entity known as "CEDARS", which had been submitted to TVA by CEDARS. Also in the course of performing the official duties of his employment with TVA, Painter personally approved an invoice to TVA in the amount of $5,655.80 from CEDARS, which had been submitted to TVA by CEDARS. Prior to his approval of both invoices to TVA from CEDARS, Painter had personally loaned $2,500 to CEDARS as “start up” money on January 7, 2005, and had loaned $5,000 to CEDARS on October 18, 2004, on behalf of Enginuity Development Group, LLC, a limited liability company of which Painter was a managing member. Painter admitted that on January 21, 2005, and March 1, 2005, he knew that he had a financial interest in CEDARS and violated the federal conflict of interest statute by approving the invoices.
This investigation was conducted by the TVA, Office of Inspector General. Assistant U.S. Attorney F. M. (Trey) Hamilton III represented the United States.
Gadsen man Pleads Guilty in Procurement Fraud from TVA
JUNE 8, 2010 – BIRMINGHAM – A Gadsden man pleaded guilty today to mail fraud in connection with more than $100,000 in fake invoices for insulating blankets that were supposed to be supplied to the Tennessee Valley Authority, U.S. Attorney Joyce White Vance announced.
Daniel Gene Sieber II, 40, pleaded guilty before U.S. District Judge Virginia Emerson Hopkins to one mail fraud count prosecutors filed against him in May. The maximum sentence for the mail fraud charge is 20 years in prison and a $250,000 fine.
According to Sieber’s plea agreement, he was the manager for a Gadsden office of Shaw Field Services, a subsidiary of Louisiana-based Shaw Group Inc., which had a contract with TVA in 2004 to provide insulating blankets for some TVA power plants. Shaw Field Services was bought and became Analytic Stress Relieving in 2005.
Between June 2005 and June 2007, Sieber and an accomplice created fraudulent invoices for insulating blankets and submitted them to Shaw Field Services/Analytic Stress Relieving. The invoices were from a fictitious vendor in Albertville, according to Sieber’s plea agreement.
Sieber knew the invoices were fraudulent and that Shaw Field Services/Analytic Stress Relieving had not received insulating blankets from the straw company, the plea agreement says. Sieber submitted $106,662 in fraudulent invoices to his company, which paid the straw company $91,855. The proceeds were then divided between Sieber and his accomplice.
The TVA Office of Inspector General investigated the case. Assistant U.S. Attorney David Estes is prosecuting it.
Message from the IG
The TVA Office of Inspector General performs a crucial mission by providing independent and objective reporting to the TVA board, the Congress, and other stakeholders. The OIG does this through its audit, inspection and investigative activities. By statute it is charged with promoting economy and efficiency throughout TVA while preventing and detecting fraud, waste, and abuse affecting TVA. TVA employees, contractors, and the public can help the TVA OIG fulfill its mission and make a difference at TVA by reporting any suspicions about fraud, waste and abuse to the OIG hotline system, known as Empowerline.
