Feds keep quiet on theft probe

Federal officials were tight-lipped today about a secret criminal investigation into allegations that a longtime paralegal in the U.S. attorney's office may have embezzled a large sum of money.

The paralegal reportedly has been put on administrative leave amid the probe, which is being conducted by the Justice Department's Public Integrity Section in Washington and the Las Vegas office of the U.S. Secret Service.

Details are sketchy because those in positions of authority at the federal courthouse have refused to discuss the investigation.

Some insiders have suggested there has been an effort to keep a lid on the inquiry to minimize embarrassment to the U.S. attorney's office.

Late Tuesday, following numerous inquires by the SUN, U.S. Attorney Kathryn Landreth issued a statement confirming the probe.

"It is ordinarily not the practice of the United States attorney's office to confirm or deny the existence of a criminal investigation," Landreth said. "However, in light of the number of press inquiries and the apparent inaccuracies in some information, it is appropriate at this time to confirm the existence of an ongoing investigation of theft of federal funds."

Landreth did not identify the target of the investigation and did not explain what information being bandied about was inaccurate.

"Upon learning of the alleged criminal activity," Landreth said, "the United States attorney's office promptly took appropriate steps, including referral for immediate investigation."

Landreth referred future questions to the Public Integrity Section, which investigates alleged wrongdoing by elected and appointed federal officials.

The Public Integrity Section today referred a reporter to Justice Department spokesman John Russell.

Russell said he could not confirm or deny the existence of the theft investigation that Landreth had already confirmed.

Bits and pieces of the story, however, have been circulating throughout the courthouse the past couple of weeks.

Knowledgeable courthouse sources said the paralegal, who conducts legal research for the U.S. attorney's office, allegedly pocketed thousands of dollars by submitting phony witness vouchers to the U.S. Marshals Service in Las Vegas over a lengthy period of time. The marshals write pay checks for all federal witnesses.

There was one report that as much as $500,000 may have been stolen over the past several years.

A federal source said the paralegal, who has been with the U.S. attorney for two decades, may have hatched the voucher scheme because of a gambling problem.

About two weeks ago, according to another federal source, Secret Service agents interviewed employees at the Marshals Service and pored over records of the paralegal's dealings there.

There are reports that the paralegal may have been assisted by someone in the Marshals Service, but a well-placed courthouse source insisted no one from the service was involved. The Marshals Service, the source said, is being considered a victim in the scheme.

Tom Saitta, special agent in charge of the Secret Service in Las Vegas, and U.S. Marshal Jose Troncoso both declined comment.

Federal officials would not say when the investigation would be completed or whether charges would be filed.

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