Investigation of former BLM State Director and Deputy State Director for Natural Resources

We investigated Larry Denny, the Bureau of Land Management (BLM) Eastern States Deputy State Director for Natural Resources and John Lyon, the BLM State Director for Eastern States, after receiving allegations that Denny worked for the Chippewa Cree Tribe in Montana while also employed by BLM in Springfield, VA, and that Lyon falsified Denny’s time and attendance records.

 

Our investigation determined that from July 2012 through March 2013, Denny ceased providing any work to the Government, but he was compensated for 1,472 hours of time and benefits. Lyon knowingly concealed Denny’s absence by approving and submitting false time and attendance information, resulting in Denny receiving approximately $112,000 in Federal wages, benefits, and a performance bonus. The investigation also revealed that Denny received approximately $79,000 in compensation from the Chippewa Cree Tribe that he did not disclose to BLM.

 

A Federal grand jury indicted Denny and Lyon for wire fraud, false claims, and theft of Government property. The grand jury also indicted Denny on one count of providing false statements. Denny pleaded guilty; Lyon pleaded not guilty, but a jury convicted him on all charges.