Case 4:16-cr-00024-HCM-RJK Document 1 Filed 03/09/16 Page 1 of 8 PageID# 1

FILED
MAR -q 2016

IN THE UNITED STATES DISTRICT COURT FOR THE

EASTERN DISTRICT OF VIRGINIA

Newport News Division

CLERK, US DISTRICT COURT

NORFOLK. VA

:rO?

UNITED STATES OF AMERICA

CRIMINAL NO. 4:16c

v.

18U.S.C. 1349
Conspiracy to Commit

ROY E. FRIEND,

Mail and Wire Fraud

(Count 1)

Defendant.

18 U.S.C. 981.21 U.S.C.

853(p).28U.S.C. 2461
Forfeiture
CRIMINAL INFORMATION

GENERAL ALLEGATIONS

1.

GSA Advantage system is an e-business website designed to facilitate on-line purchasing

and GSA Schedules contract research by federal employees and local government entities. GSA

Advantage gives various government agencies access to millions of commercial products and
services. GSA Advantage ensures each product has a negotiated price and is from an approved GSA
source. GSA Advantage requires agency officials to "Login" with a "User ID" and "Password." In

order to register for an account on behalfofa federal agency the user must select the agency they are
employed by. GSA Advantage is a U.S. General Services Administration computer system that is

for official government use only. It is a website that can be accessed from any computer connected
to the internet.

2. GSA Advantage consists of a database that is comprised of smaller databases, to include

GSA Global Supply.

GSA Global Supply provides federal users, (military, and/or civilian),

worldwide access to common-use items like office products, tools and cleaning supplies. Userscan

Case 4:16-cr-00024-HCM-RJK Document 1 Filed 03/09/16 Page 2 of 8 PageID# 2

requisition items and pay with a government purchase card or through direct billing via an Activity

Address Code (AAC/DoDAAC). Thus, purchases made using GSA Advantage with government
funds are government property.

3. ROY E. FRIEND, the defendant herein, was a civilian employee of the Department of
Defense and worked as the Chief of Logistics and Program Management, Aviation and Missile
Command at Fort Eustis, Virginia, within the Eastern District of Virginia. FRIEND had a GSA
Advantage account. From in or about August 19, 2010, to in or about mid-2015, FRIEND had
approximately 666 orders totaling approximately $2,299,465.32.

Case 4:16-cr-00024-HCM-RJK Document 1 Filed 03/09/16 Page 3 of 8 PageID# 3

COUNT ONE

THE UNITED STATES ATTORNEY CHARGES THAT:

1.

The factual allegations contained in the General Allegations section are incorporated

herein by reference as if set out in full.

2.

From in or about at least June 2011, continuing through in or about at least 2015, in the

Eastern District of Virginia and elsewhere, ROY E. FRIEND, the defendant herein, and others known

and unknown to the Grand Jury, did knowingly and willfully combine, conspire, and agree with each
other and others known and unknown, to commit the following offense against the United States:
a.

To knowingly devise and intend to devise a scheme and artifice to defraud and

for obtaining money and property by means of materially false and fraudulent pretenses,
representations, and promises, affecting a financial institution, for which the defendant and

co-conspirators knowingly caused to be placed in a post office, in an authorized depository for mail
matter to besentand delivered bythe Postal Service, or caused to bedeposited a matter or thing to be
sent or delivered by private or commercial interstate carrier according to the direction thereon certain
matters and things, for the purpose of executing the scheme and artifice to defraud, in violation of
Title 18, United States Code, Section 1341; and

b.

To knowingly devise and intend to devise a scheme and artifice to defraud and for

obtaining money and property bymeans of materially false and fraudulent pretenses, representations,
and promises for which the defendant and co-conspirators transmitted and caused to be transmitted

by means of wire communications in interstate commerce certain writings, signs, signals and sounds,
for the purpose of executingthe scheme and artifice to defraud, in violationof Title 18, United States
Code, Section 1343.

Case 4:16-cr-00024-HCM-RJK Document 1 Filed 03/09/16 Page 4 of 8 PageID# 4

WAYS. MANNER AND MEANS OF THE CONSPIRACY

The ways, manner and means by which the foregoing objectives of the conspiracy to

commit mail and wire fraud wereto be accomplished included, but were not limited to, the following:
2.

The purposes and objects of the conspiracy to commit mail and wire fraud and the

scheme and artifice included, but were not limited to, the use of false pretenses, representations,
promises, and material omissions in order to defraud the United States by unlawfully procuring goods

through use of the defendant's account at the GSA Advantage website, and then selling those goods
for personal financial gain at the location of a co-conspirator's business, to other individuals in the
contracting trades or through the internet using the eBay auction website.

3.

It was a part of the conspiracy and the scheme and artifice that the conspirators,

includingdefendant FRIEND, used the GSA Advantage website made available to him in the course

of his employment at Ft. Eustis, Virginia, in order to obtaingoodsthat werethenshipped to Ft. Eustis,
Virginia by private commercial interstate carrier.

4.

Itwas further a partof theconspiracy andthescheme andartifice that FRIEND, acting

in coordination with other conspirators, would remove received goods from Ft. Eustis and take them

to various locations including FRIEND'S residence andthe business location of another conspirator.
5.

It was further a partof the conspiracy and the scheme and artifice thatthe conspirators

sold goods obtained through the GSA Advantage website to others for personal gain, and otherwise
made personal use of the fraudulently obtained goods.

6.

It was further a partof the conspiracy andthescheme and artifice that FRIEND falsely

represented to purchasers of the GSA goods that he had legitimately acquired such goods as
compensation for work he had performed.

Case 4:16-cr-00024-HCM-RJK Document 1 Filed 03/09/16 Page 5 of 8 PageID# 5

7.

It was further a part of the conspiracy and the scheme and artifice that FRIEND

fraudulently obtained additional goods through U.S. Falcon, another government contractor under the
false auspices that these goods were being procured for Fort Lee.
8.

It was further a part of the conspiracy that the conspirators caused the use of the

United Statesmails, private interstate commercial carriers and electronictransmissions by wire in the

ordering and receipt of goods from the GSA Advantage website and the posting online of goods for
sale on the eBay website and the shipment of sold goods from and to locations within the Eastern

District of Virginia to and from locations outside of the Commonwealth of Virginia.

(In violation of Title 18, United States Code, Sections 1349, 1341, and 1343.)

Case 4:16-cr-00024-HCM-RJK Document 1 Filed 03/09/16 Page 6 of 8 PageID# 6

FORFEITURE ALLEGATION

1.

The defendant, ROY E. FRIEND, if convicted of the violation alleged in Count

One of this Information shall forfeit to the United States, as part of the sentencing pursuant to
Federal Rule of Criminal Procedure 32.2:

a.

Any property, real or personal, which constitutes or is derived from proceeds

traceable to the offense of conviction.

b.

Any other property belonging to the defendant, up to the valueof the property

subject to forfeiture, if anyproperty subject to forfeiture: (a)cannot be located upon

the exercise of due diligence; (b) has been transferred to, sold to, or deposited with
a third person; (c) has been placed beyond thejurisdiction of the Court; (d) has been

substantially diminished in value; or (e) has been commingled withother property

that cannot be subdivided without difficulty.

2.

The property subject to forfeiture includes, but is not limited to, a monetary

judgment in the amount of not less than $800,000, representing the proceeds of Count One.

(All in accordance with Title 18, United States Code, Section 981(a)(1)(C) by Title 28,
United States Code, Section 2461(c); and Title 21, United States Code, Section 853(p)).

Case 4:16-cr-00024-HCM-RJK Document 1 Filed 03/09/16 Page 7 of 8 PageID# 7

UNITED STATES v. ROY E. FRIEND. 4:16cr^.M

Respectfully submitted.
DANA J. BOENTE

UNITED STATES ATTORNEY

By:

Brian J. Samuels

Assistant United States Attorney

Virginia State Bar No. 65898
721 Lakefront Commons. Suite 300

Newport News. Virginia 23606

(757)591-4000

Bv:

Kevin Hudson

Assistant United States AttorneyVirginia State Bar #81420

Attorney for the United States
721 Lakefront Commons. Suite 300

Newport News. Virginia 23606

Tel. (757) 591-4000
Fax:(757)591-0866

Case 4:16-cr-00024-HCM-RJK Document 1 Filed 03/09/16 Page 8 of 8 PageID# 8

CERTIFICATE OF SERVICE

I hereby certify that on the 9th day of March, 2016,1 filed the foregoing with the Clerk of
Courts and sent notification of such filing to the following by electronic mail:

Crystina O'Brien, Esq.

Counsel for the Defendant

10 West Queens Way, Suite D

Hampton, VA 23669
(757) 915-6986 (Phone)
(757) 915-6988 (Fax)

Email: cob@cobrienlawfirm.com

/s/
Brian J. Samuels

Virginia State Bar No. 65898

Attorney for Government
United States Attorney's Office
Fountain Plaza Three, Suite 300
721 Lakefront Commons_
Newport News, Virginia 23606
Phone:(757)591-4032
Fax:(757)591-0866
Email: Brian.Samuels@usdoj.gov

Case 4:16-cr-00024-HCM-RJK Document 1-1 Filed 03/09/16 Page 1 of 1 PageID# 9

REDACTED
JS 45 (11/2002)

U.S. District Court

Criminal Case Cover Sheet

Under Seal: Yes

Place of Offense:

No

Judge Assigned:

Criminal Number: ^/(c? C2-f^Y

Superseding Indictment:

City. EDVA
County/Parish:

Same Defendant:

New Defendant:

Magistrate Judge Case Number:

Pre Indictment Plea

Search Warrant Case Number:

R 20/R 40 from District of

Defendant Information:

Juvenile: Yes

No 3

Defendant Name:

ROY E. FRIEND

Address:

FBI#:

Alias Name(s):

Newport News, VA 23602

Employment;
Birth Date: 1963

SS#: 1122

Height:

Weight:

Interpreter: Yes

lbs

Sex: M

Race:

Hair:

White

Nationality:

Eyes:

Place of Birth:

Scars/Tattoos:

No HI List Language and/or dialect:

Location Status:
Arrest Date:

D Already in Federal Custody as of:

in:

D Already in State Custody

D On Pretrial Release

Not in Custody

D Arrest Warrant Requested

Fugitive

Summons Requested

Arrest Warrant Pending

Detention Sought

Bond

Defense Counsel Information:

Name: Crystina O'Brien

Court Appointed

Address 10 West Queens Way, Ste. D.

Hampton, VA 23669

El Retained

Telephone: (757) 915-6986

Public Defender

D Office of Federal Public Defender should not be appointed due to conflict of interest
D CJA attorney:

should not be appointed due to conflict of interest

U.S. Attorney Information:

Telephone No. 757-591-403!

AUSA Brian Samuels

Bar-~:

Complainant Agency. Address & Phone Number or Person & Title:

GSA-OIG, SA Brandon O'Neill, (202) 252-0029

U.S.C. Citations:
Code/Section

Description of Offense Charged

Count(s)

Capital/Fclony/Misd/Petty

Conspiracy to Commit Mail and

Set I
Set 2

18 U.S.C. 1349
18 U.S.C. 981; 21 U.S.C.
8S3(p); 28 U.S.C. 2461

Wire Fraud
Forfeiture

Set 3
Set 4

(May be continued on reverse)

Felony