USAID’s Office of Inspector General (OIG) initiated an investigation into an allegation that the spouse and eligible family member (EFM) of a USAID Foreign Service Officer (FSO) was a fugitive from justice. According to the allegation, the EFM had been indicted as a co-conspirator in a mortgage fraud scheme that spanned 2004–2012 and caused bank losses of over $20 million. An arrest warrant was issued for the EFM in March 2017.
OIG’s investigation revealed that the EFM resided with the FSO in U.S. government-funded housing for over 7 years, at multiple overseas posts, and did not return to the United States after the indictment. OIG also learned that the FSO had been named as a “straw buyer” in the fraud scheme on multiple occasions. However, during an interview with investigators, the FSO denied having any knowledge of the indictment or the fraud.
OIG referred its investigative findings to USAID for action. USAID’s Office of Human Capital and Talent Management placed the FSO on administrative leave and canceled their upcoming assignment.