ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, Jamie DePaepe, Special Agent in Charge of the Department of the Interior (DOI) Office of Inspector General, and Andy Tsui, Special Agent in Charge of IRS Criminal Investigation Denver Field Office, announced that William Ross Badoni and Elroy Harry made initial appearances in federal court on April 27 and April 25 on an indictment charging them with conspiracy to commit federal program fraud. The indictment also charges Badoni with one count of committing theft or bribery concerning programs receiving federal funds and eight counts of laundering of monetary instruments. Badoni, 59, of Shiprock, and Harry, 59, of Aztec, will remain on conditions of release pending trial, which has not been scheduled.

A federal grand jury indicted Badoni and Harry on April 11. According to the indictment, Badoni was the owner and director of Badoni Construction Company, located in San Juan County. During the time relevant to the indictment, Harry was employed by Kinteel Residential Campus, Inc. (KRCI) as a maintenance supervisor. KRCI is a residential facility which offers free or low-cost housing and meal accommodations for students attending school in Aztec. As such, KRCI receives federal funds from the Department of Interior through the Bureau of Indian Education.

From about April of 2018 to June of 2019,  Badoni and Harry allegedly conspired to falsify and submit to KRCI bids in the names of other construction companies in order to make it more likely that Badoni’s bids would be selected for KRCI construction projects. Harry also allegedly provided Badoni with non-public information about construction projects and the bidding process. In return, Badoni allegedly gave, offered, or agreed to give things of value, namely sums of money, to Harry. Once Badoni had won the initial award of construction contracts, Harry and Badoni allegedly worked together to increase compensation for Badoni by submitting fraudulent “change orders” for KRCI’s approval. Further, Badoni and Harry allegedly caused KRCI to issue new construction contracts on an urgent basis under false pretenses in order to justify deviating from standard policies and procedures relating to KRCI’s bidding process.

“This indictment shows IRS-Criminal Investigation’s commitment to ensuring fair and open competition opportunities for companies seeking to work with the federal government,” said Andy Tsui, IRS-CI Special Agent in Charge.  “IRS-CI will continue working with our law enforcement partners to ensure an even playing field for those attempting to obtain federal contracts for their businesses.”

“The Department of the Interior (DOI) Office of Inspector General (OIG) is committed to protecting our Indian Country schools and dormitories, so the students receive the education and opportunities they deserve, and the educators and staff have the resources they need,” said Jamie DePaepe, Special Agent in Charge for the DOI OIG. “We will continue to work with our law enforcement partners to aggressively investigate fraud in DOI programs to ensure those who defraud DOI programs are held accountable.”

“We will ardently protect taxpayer dollars invested in our youth,” said United States Attorney Alexander M.M. Uballez. “Protecting the integrity of contracting processes involving federal funds helps make sure that when we invest in our communities, that investment pays off.”

An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Badoni faces up to 20 years in prison and Harry faces up to 5 years in prison.

The Criminal Investigators Division of the U.S. Department of the Interior, Office of Inspector General investigated this case. Assistant United States Attorney Taylor F. Hartstein is prosecuting the case.

St. Thomas, VI – Dozens of federal Inspector General officials gathered in St. Thomas on March 22-23, 2023, for the first Virgin Islands Office of Inspector General Spring Symposium. The federal oversight and law enforcement officials spent two days collaborating and sharing information as part of their ongoing commitment to protect federal funds awarded to the Virgin Islands.

“As a result of Hurricanes Irma and Maria and the COVID-19 pandemic, the Territory received tens of billions of federal funds,” United States Attorney Delia L. Smith said. “We are committed to ensuring that these funds are properly utilized to improve the lives of the people of the Virgin Islands.” Sponsored by the United States Attorney Office and the Virgin Islands OIG Council, the symposium focused on identifying strategies to combat waste, fraud and abuse, and to improve efficiency in the federally funded programs in the Virgin Islands.

“The symposium was an excellent opportunity to do what the Inspector General community does best: work together to combat fraud, waste and abuse across federal government programs,” said Mark Lee Greenblatt, Inspector General of the U.S. Department of the Interior and Chairperson of the Council of the Inspectors General on Integrity and Efficiency. Greenblatt thanked United States Attorney Smith for bringing together such a diverse array of federal law enforcement organizations. “Collaboration with our on-island partners – including the U.S. Attorney’s Office, the Virgin Islands OIG and local law enforcement – is critical to the DOI OIG’s success here. I look forward to bolstering those partnerships as we work together to identify and address misconduct in DOI programs in the U.S. Virgin Islands”, Greenblatt said.

Inspector General of the U.S. Small Business Administration (SBA), Hannibal “Mike” Ware, added that “the inaugural symposium showcased the unwavering commitment of the Inspector General community to combatting waste, fraud and abuse. With potential fraud on the rise, the IG community has implemented a whole-of-government approach by investing in partnerships to bring wrongdoers to justice and reclaim stolen taxpayer dollars.”

“This symposium represents the unprecedented commitment of the IG community and federal and local law enforcement partners to interagency collaboration in the U.S. Virgin Islands. Thank you to U.S. Attorney Delia Smith for hosting this historical symposium. We look forward to continued partnership with our local partners in the Virgin Islands to combat fraud, waste and abuse and to protect the integrity of HUD programs", said Rae Oliver Davis, Inspector General of the U.S. Department of Housing and Urban Development (HUD).

Representatives from 16 Inspector General Offices and federal oversight agencies, including Small Business Administration, Interior, Health and Human Services, Housing and

Urban Development, Education, Treasury, Transportation Security Administration, General Services Administration, Environmental Protection Agency, Internal Revenue Service, Transportation, U.S. Postal Service, Energy, Labor, Department of Justice and Commerce, attended the symposium. Federal law enforcement agents and analysts stationed in the Virgin Islands also attended the symposium, as well as representatives from the Virgin Islands Office of the Inspector General. The symposium was held at the U.S. Citizenship and Immigration Services office in Smith Bay, St. Thomas.