Thomas Hartley of Henryville, PA, was charged Tuesday with defrauding the government of $260,000 through multiple schemes.
Hartley, age 48, is a Special Agent from the U.S. Department of Labor. According to US Attorney Gerard M. Karam, the second superseding indictment alleges that Hartley submitted false documents to the Department of the Army while on leave from his position with the Department of Labor and serving with the New Jersey National Guard. This led to Hartley obtaining approximately $23,580 in housing allowance funds to which he was not entitled. The second superseding indictment alleges that Hartley fraudulently applied for and collected unemployment benefits by claiming he was unemployed while serving full-time active duty with the New Jersey National Guard. Further, Hartley failed to disclose that he was on military leave from his full-time federal civilian employment with the United States Department of Labor. Hartley thereby collected approximately $60,284 in unemployment compensation funds to which he was not entitled. The second superseding indictment also charges Hartley with fraudulently obtaining approximately $127,000 from his Thrift Savings Plan (TSP) by falsely claiming that he was not married when he was. Hartley thereby transferred the funds to himself personally or to a bank account solely in his name, without the knowledge or consent of his wife. Finally, the second superseding indictment charges Hartley with fraud in connection with filing a lost wage claim with USAA Insurance following an automobile accident. Hartley falsely claimed that he had lost wages as a result of the automobile accident while suspended without pay from the Department of Labor due to an ongoing criminal investigation. Hartley thereby collected approximately $50,000 in lost wage benefits to which he was not entitled.
What was Hartley charged with?
The second superseding indictment charges Hartley with theft of government funds and three counts of false statements regarding the Department of the Army housing allowance. In addition, the indictment charges Hartley with fraud in connection with the receipt of Pennsylvania unemployment compensation benefits, four counts of wire fraud, one count of mail fraud, and one count of theft of government funds in connection with his fraudulent unemployment compensation scheme. The indictment also charges Hartley with wire fraud, mail fraud, and false statements in connection with his scheme to defraud the thrift savings plan and his wife. Finally, the indictment also charges Hartley with five counts of wire fraud in connection with his fraudulent claim for lost wage benefits.
What is the penalty for wire fraud?
Under federal law, the charges of Wire Fraud and Mail Fraud carry up to a maximum sentence of twenty years in prison, a term of supervised release following imprisonment, and a fine. The charge of Theft of Government Funds carries a maximum sentence of ten years in prison, a term of supervised release following imprisonment, and a fine. The charge of False Statements carries a maximum penalty of five years in prison, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
What is an indictment?
Indictments and criminal information are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. The charges against Hartley resulted from an investigation conducted by the Department of Labor, Office of Inspector General, Office of Special Investigations; the United States Army, Criminal Investigation Division; and the USAA Insurance Special Investigations Unit. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.