Gambling may have played role in fed theft

A federal paralegal under investigation for allegedly stealing thousands in government funds may have been hooked on video poker.

Knowledgeable federal courthouse sources said Wednesday the paralegal, who has worked in the U.S. attorney's office the past two decades, often talked about her video poker exploits in local casinos and supermarkets to office friends.

The sources said a gambling problem may have led the paralegal to devise an alleged witness fee scheme to embezzle the money from the government.

One well-placed federal source said the U.S. attorney's office failed to pick up on the paralegal's problem.

"There were a number of warning signs," the source said. "But nobody bothered to check up on what she was doing."

The source said the paralegal, who often came to work late and left early, was disciplined several months ago for misusing her federal credit card.

Federal officials in authority at the federal courthouse are being tight-lipped about the criminal investigation.

But word is being bandied about among reliable courthouse sources that the paralegal may have stolen as much as $400,000 in the witness fee scheme in just the last two years.

U.S. Attorney Kathryn Landreth issued a statement late Tuesday confirming that the Justice Department's Public Integrity Section in Washington has been called in to investigate a "theft of federal funds."

Landreth, who issued her statement following a series of SUN inquiries, would not discuss the specifics of the case and referred further questions to the Justice Department.

In Washington, Justice Department spokesman John Russell has refused to comment on the investigation.

Landreth would not confirm that the paralegal is the target of the probe. It is well known at the federal courthouse, however, that the veteran research assistant is under investigation. Staffers at the U.S. attorney's office recently were notified that the paralegal has been placed on indefinite administrative leave.

Sources said prosecutors may be considering filing a criminal information against the paralegal.

An information is a way to charge someone with a crime without having to present evidence to a grand jury. It often is used when a target of an investigation is prepared to strike a plea arrangement with prosecutors.

Three weeks ago, the paralegal's office was sealed off by federal agents who've been poring over her records and examining her computer disks, sources said.

Agents also have examined records at the U.S. Marshals Service, where the paralegal allegedly had been submitting phony witness vouchers. The paralegal allegedly would deposit the checks in a local bank account and then draw money from the account.

Sources said the paralegal couldn't have carried out the alleged voucher scam without help from someone in the Marshals Service, which cuts all paychecks for witness fees.

But one well-placed courthouse source said that no one from the service is targeted in the investigation and that the agency is considered a victim.

No one, however, has explained how the researcher could have pocketed so much money for so long without it being detected by the Marshals Service or the U.S. attorney's office.

U.S. Marshall Jose Troncoso has declined comment.

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