James T. Jacks
Acting United States Attorney
Northern District of Texas

THURSDAY, APRIL 30, 2009
www.usdoj.gov/usao/txn

FORMER FEDERAL EMPLOYEE PAYS U.S. TO RESOLVE FALSE CLAIMS
ARISING FROM PUBLIC CORRUPTION

DALLAS — A former employee in the Dallas Regional office of the U.S. Department of Health and Human Services, Office of General Counsel (OGC), Josephine Davis, agreed to pay $45,263.16 to the U.S. to resolve allegations that she violated the civil False Claims Act, announced acting U.S. Attorney James T. Jacks of the Northern District of Texas. Davis, 58, of Dallas, was alleged to have submitted to OGC fraudulent invoices and claims for unauthorized credit card charges, work not performed, and office resources used for personal use.

By entering into the civil settlement, Davis does not admit any wrong-doing and denies any liability. However, in January 2009, Davis pled guilty to a one-count Information charging her with theft of government property, and was sentenced to six-months home confinement and ordered to pay $9537 restitution.

Davis worked as a program analyst and team leader for non-attorney staff at OGC. She was an authorized user of a government credit card issued to pay for supplies, furniture, training, and maintenance related to the OGC. In late 2006 and 2007, the government alleged Davis improperly charged purchases totaling $9537 to that government credit card to pay for a retirement party for her supervisor. The charges included the cost of banquet facilities, catering, and decorations. As part of her criminal plea, Davis admitted to making fraudulent “training” invoices disguising the unauthorized expenses.

Also during her criminal case, Davis admitted that between January 2004 and March 2007, she was paid more than $10,209 in unsubstantiated overtime requests, as well as $2885 paid on her behalf for personal use of a government-issued cell phone.

The criminal and civil cases were investigated by the U.S. Department of Health and Human Services - Office of Inspector General (OIG) and OIG’s Office of Audit Services. Assistant U.S. Attorney Sean R. McKenna handled the case.

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