Couple Indicted for Stealing $1.2M from Department of Energy

Michael Strayer, a former senior executive at the U.S. Department of Energy and longtime employee at Oak Ridge National Laboratory, and his wife, Karen Earle, have been indicted in an alleged scheme that diverted $1.2 million in government funds to their personal use.
From Frank Munger’s report:
Strayer, 69, and Earle, 48, were arraigned last week in U.S. District Court in Maryland. Both entered not guilty pleas, and a trial date was tentatively scheduled for mid-August.
The case revolves around the alleged misuse of federal funding for the SciDAC (Scientific Discovery through Advanced Computing) Review, a Department of Energy publication that Strayer started soon after he left ORNL in 2004 to take a job at DOE headquarters in Washington.
As DOE’s associate director of Advanced Scientific Computing Research, Strayer used program funds for the publication to tout the work done by the agency’s scientific computing programs and related partnerships with universities.
According to the federal indictment, Strayer initiated a sole-source contracting process via ORNL to select a foreign publishing company — identified in the indictment as “Corporation A,” but reported to be IOP Publishing, based in England — to publish the SciDAC Review. In 2006, the indictment said, Strayer directed the publisher to hire Earle as a $60,000-a-year consultant “despite Earle’s lack of relevant qualifications” for the job.
“Shortly thereafter, Strayer began a romantic relationship with her and directed that the publisher later increase her consulting fees,” the Justice Department said in information released by the U.S. attorney’s office in Maryland after the 13-count indictment was returned May 16.
Over time, Earle’s role broadened, and she was allegedly paid tens of thousands of dollars to acquire articles for SciDAC Review, even though the actual articles were provided free of charge by Oak Ridge and DOE’s other national labs — at the direction of Strayer, according to the criminal charges.

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