Office of the Naval Sea Systems Command Inspector General Case Number: 201200536 Report of Investigation 25 April 2012 Subj: NIGHTS CASE 201200536; ALLEGED FAILURE TO AVOID ACTIONS THAT CREATED THE APPEARANCE OF IMPROPRIETY; AND MISUSE OF GOVERNMENT PROVIDED WIRELESS COMMUNICATION DEVICE ***** Preliminary Statement , b6 b7c k2 , ) for Littoral Combat Ship (LCS), is the subject of this investigation. Naval Sea Systems Command Inspector General (NAVSEAINSGEN) consulted with b6 b7c k2 b6 b7c k2 , b6 b7c k2 for Naval Sea Systems Command. This report does not contain any recommendations requiring NCIS or Acquisition Integrity Office (AIO) action. The purpose of this investigation was to obtain the facts to determine whether the allegations are substantiated or unsubstantiated. AUSTAL USA alleged that b6 b7c failed to avoid actions that created the k2 appearance of impropriety when he engaged in a close personal relationship, potentially intimate, with an employee of AUSTAL USA. 1. b6 b7c k2 (b)(6), (b)(7)(c) 2. A February 2012 Preliminary Inquiry was conducted by b6 b7c (b)(6), (b)(7)(c) b6 b7c k2 , b6 , ) for k2 Carriers b7c b6 b7c k2 (CV) into the alleged improper conduct of . The k2 inquiry concluded, among other things, that evidence “supports the allegations of improper conduct ICO b6 b7c k2 in connection with b6 b7c k2 , the b6 b7c k2 b6 b7c k2 for the b6 b7c k2 of Austal USA.” Our review of the complaint and other documents determined the allegations addressed in the Preliminary Inquiry are appropriate for investigation by NAVSEAINSGEN. Individuals not interviewed but mentioned in the investigation b6 b7c k2 b6 b7c k2 b6 b7c k2 ,b6 b7c k2 , b6 b7c k2 , b6 b7c k2 , b6 b7c k2 , b6 b7c k2 , “b6 b7c k2 (b)(6), (b)(7)(c) ” “b6 b7c k2 ” FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 1 Subjects and List of Allegations 3. There is one subject in this investigation and two allegations were identified as follows: , b6 b7c k2 a. Allegation #1: That b6 b7c k2 b6 b7c k2 for Littoral Combat Ship Program (PMS 501), (b)(6), (b)(7)(c) ), Washington Navy Yard, DC, in January 2012, failed to avoid actions that created the appearance of impropriety when he engaged in a close personal, and potentially intimate, relationship with an employee of AUSTAL USA, in violation of the Uniform Code of Military Justice, Article 133, “Conduct Unbecoming an Officer and Gentlemen,” and 5 CFR 2635.101, “Basic Obligation of Public Service.” Substantiated. b. Allegation #2: That b6 b7c k2 for Littoral Combat Ship Program (PMS 501), (b)(6), (b)(7)(c) ), Washington Navy Yard, DC, between September 2010 and February 2012, misused his government provided wireless communication device (202-330-7445) by transmitting nearly 38,000 unofficial text messages to b6 b7c k2 and b6 , in b7c Justice, Article 92, violation of the Uniform Code of Military k2 “Failure to Obey Order or Regulation,” 5 CFR 2635.704, Use of Government Property, and NAVSEAINST 2100.2, Management of Telecommunications Systems and Services dated 24 Jun 08. Substantiated. b6 b7c k2 ***** Background 4. assumed duties as (b)(6), for (b)(7)(c) (b)(6), ), in August 2010. (b)(7)(c) (b)(6), (b)(7)(c) LCS provides a responsible for acquiring and maintaining the littoral mission capabilities of the Littoral Combat Ship (LCS) class from end to end, beginning with procurement and ending with fleet employment and sustainment. As b6 b7c k2 , b6 b7c k2 is responsible for total ship system engineering and the acquisition of Littoral Combat Ships, b6 b7c k2 b6 b7c k2 (b)(6), (b)(7)(c) FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 2 their mission modules, and associated technologies encompassing a budget in excess of $6 billion.1 5. AUSTAL USA is the American branch of operations for Australia-based shipbuilder AUSTAL. The facility is based in Mobile, Alabama and employs more than 1000 workers. In 2010, the U.S. Navy awarded AUSTAL a contract to construct one INDEPENDENCE class Littoral Combat Ship. The total value of the contract is $3.5B and includes options for nine additional vessels. ***** 6. Allegation #1: b6 b7c k2 That b6 b7c k2 , b6 b7c k2 for Littoral Combat Ship Program (PMS 501), (b)(6), (b)(7)(c) Washington Navy Yard, DC, in January 2012, failed to avoid actions that created the appearance of impropriety when he engaged in a close personal, and potentially intimate, relationship with an employee of AUSTAL USA, in violation of the Uniform Code of Military Justice, Article 133, “Conduct Unbecoming an Officer and Gentlemen,” and 5 CFR 2635.101, “Basic Obligation of Public Service.” Substantiated. Applicable Standard 7. Article 133, Uniform Code of Military Justice, “Conduct Unbecoming an Officer and Gentleman” states, (1) That the accused did or omitted to do certain acts; and (2) That, under the circumstances, these acts or omissions constituted conduct unbecoming an officer and gentleman. 8. The Joint Ethics Regulation, 5 CFR 2635.101, “Basic Obligation of Public Service” states in part, “…Each employee has a responsibility to the United States Government and its citizens to place loyalty to the Constitution, laws and ethical principles above private gain. To ensure that every citizen can have complete confidence in the integrity of the Federal Government… Employees shall endeavor to avoid any actions creating the appearance that they are violating the law or the ethical standards set forth in this part. Whether particular circumstances create an appearance that the law 1 b6 Fitness Report & Counseling Record for Period Ending 31 JUL b7c k2 2011. FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 3 or these standards have been violated shall be determined from the perspective of a reasonable person with knowledge of the relevant facts.” 9. Program Executive Office, Littoral Combat Ships PEO LCS Standards and Expectations Memorandum of 22 Jul 11 states: Conduct: It is imperative that all members of the PEO LCS Organization conduct themselves properly at all times. Avoid even the perception of impropriety regardless of where you are or what you may be doing. Findings of Fact Complainant’s Testimony , b6 b7c k2 , b6 b7c k2 AUSTAL USA 10. On 1 March 2012, NAVSEAINSGEN interviewed b6 b7c k2 at AUSTAL USA in Mobile, Alabama. During the interview b6 b7c k2 was asked about his responsibilities as b6 b7c k2 of AUSTAL USA. b6 b7c k2 answered as follows: Q: A: Can you please explain for us what your responsibilities are as the (b)(6), (b)(7)(c) ? (b)(6), (b)(7)(c) 11. b6 b7c k2 answers questions to characterize b6 b7c k2 position at AUSTAL USA, and the nature of her responsibilities. Q: A: Q: A: … my office is investigating alleged inappropriate conduct by one of our employees,b6 b7c k2 … Are you aware of the situation that occurred between and one of your employees? b6 Yes…b6 b7c k2 , who was my b6 b7c k2 . b7c And as your b6 b7c k2 what are her duties? k2 (b)(6), (b)(7)(c) FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 4 (b)(6), (b)(7)(c) 12. b6 b7c k2 between b6 b7c k2 Q: A: 13. b6 b7c k2 betweenb6 b7c k2 describes his perception of the relationship and b6 b7c k2 . Now, the issue in question between b6 b7c k2 and b6 , how would you characterize the issue? Well, b7cI think it was early on. …clearly an inappropriate personal relationship was started. k2 From what I've been exposed to by way of statements and my own personal knowledge and when I became aware of it, that it was short-lived. describes how he discovered the relationship and b6 b7c k2 . Q: …did I correctly hear that you independently had become aware of something between the two? A: No. It was brought to my attention…it was brought to my attention on Monday morning, January, I think it was the 23rd… I’m pretty sure it was the 23rd… And that was brought to my attention by my FSO and , b6 b7c k2 who said, "I've got to make you aware b6 b7c k2 of a situation." And he said, "I hate to do this to you, but I firmly believe that there's a relationship that has started betweenb6 and b6 b7c k2 ." And he (b6 b7c ) was going tob7c be in town that whole week for k2 preparation for a program review with the k2 , b6 … it b6 b7c k2 was brought to me through b6 b7c k2 b7c thatb6 and he (b6 b7c ) had made arrangements that was going to k2 b6 b7c stay with him in his hotel room throughout k2 b7c k2 that visit. I couldn't believe this… I mean, I just had k2 no clue until that moment… But I didn't just go on that… describes his understanding of an appropriate 14. b6 b7c k2 business relationship between b6 b7c k2 and b6 b7c k2 . Q: …I understand that she b6 b7c k2 ) was the b6 b7c k2 and also the b6 b7c k2 . How would you characterize the interaction between them? Is this something that's done during normal work hours or how would that occur? I can't envision other than last-minute pointers the day of an event where there should be any real direct contact between myb6 and b6 b7c k2 . He has his executive assistant, b7c who would presumably talk with b6 b7c k2 A: k2 FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 5 my executive assistant to coordinate calendars… And then the day of an event where we're about to go onto the stage or the seating arrangement, you know, that's where there would be the direct contact… "This is where you sit." Giving the instruction in detail before an event… considering her scope of responsibilities and protocol of appropriateness that she would have that kind of contact. 15. b6 b7c k2 answers questions about why he thought the relationship between b6 b7c k2 and b6 b7c k2 was inappropriate. A: Q: A: Q: A: …until I had a visual of them together socially I wasn't ready to accept and really approach the Navy with this. I give everybody the benefit of the doubt… I was 99 percent sure when I approached (b) (6), (b)(6), (b)(7) , but I still told him there's the 1 percent (b)(7) (c) because I had yet to see them together… cars in (c) hotel parking lots overnight… eyewitness account of them leaving the hotel in the morning. The cars hadn't moved the next morning. I had enough to go talk to to say, "I've got to tell you where I am (b) (6), with this and what I know." But until I got the (b)(7) visual account of them together, which we ultimately (c) did get, I was still saying to people, "I'm 99 percent." I was 100 percent at the end of the week… it was around 10:00 at night and believe it or not, my b6 of HR, he doesn't live too far away but he did oneb7more drive-by just to get another… He just happened to go by when they were getting out of his c car. k2 It was like they were on a date and they were coming back from a date. So your staff members came to you and informed you of something they believed to be improper, is that correct? Mm-hmm. In your view as the b6 b7c k2 describe for us the problem with the two of them having the type of relationship that you believe they were having. is exposed to almost everything that crosses my b6 desk, from board reports and conversations… The Navy b7c and the government in our billing and pricing k2 structure ensures that we have nothing to hide… Still, there's a professional and ethical responsibility to draw the line on relationships with your customer… The appearance of impropriety in the sense that it could be viewed that I dispatched her to form a relationship with the b6 b7c k2 , a guy who controls billions, millions of dollars of program cost control discretion. And, that's where I was compromised… I felt I had to make sure that this was not, clearly that everybody understood that I didn't do this… this is not something that I formulated to try to gain advantage or handle b6 b6 b7c … I suspect that -- and this is why I b7c k2 k2 FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 6 Q: A: Q: A: approached at a certain point -- the Navy (b)(6), (b)(7)(c) would have real concern over the fact that a guy in his position had a familiar relationship and potentially have compromised himself… the personal and ethical behavior expected of a uniformed officer in the Navy… the appearance of impropriety… Given the facts that were developed in your investigation what was your characterization of their behavior or the relationship at this particular point? It confirmed what I was told. Remember, now, what I was told on Monday was he was coming into town, there was a relationship, and she was intending to spend the week with him in his hotel. Now, when you say there was a relationship, what type of relationship precisely are we talking about? Well, an intimate relationship… That they were having sexual relations… it's an inappropriate relationship whether they were sleeping together or not. …The fact that there's a social familiar relationship where going out in public where people might see my EA together with the program manager of a multi-billion dollar program is concerning… People could accuse me of dispatching her to do that… there's something inappropriate there. There's the appearance of impropriety. It's not above reproach. 16. b6 b7c k2 describes how he reported the inappropriate (b)(6), (b)(7)(c) relationship between b6 b7c k2 andb6 b7c k2 to A: . and I talked Wednesday evening. I (b)(6), (b)(7)(c) waited for him to check into his hotel. I wanted to have a personal conversation with him. I didn't even want to call him ahead of time because I didn't want him to make any calls and wonder… "What's wrong with the LCS program and why does b6 b7c k2 want to talk to me without b6 b7c k2 ?"… I met with him in his hotel room… And I said, I just want you to know… that indeed b6 b7c vehicle was at the hotel across the bay where b6 k2 was staying… We know it was b7c k2 her car. I mean, there's no doubt. And it was in the same spot in the morning. And they were seen leaving at separate times from the hotel in the morning. b6 left first and then b6 left second. Ib7c still said I was 99 percent, because b7c there's that was staying at k2 chance that maybe b6 k2 that hotel… By the next morning b7cmy HR b6 , actually knowing my concern, drove by the parking lot k2 hotel b7 Wednesday evening and actually saw b6 cand b6 k2 getting out of his b7c b6 b7c k2 together in the parking lot b7c car and going into the hotel together. So k2 there's k2 this visual confirmation I was looking for. And that's as close as you can get to walking into the room and catching them, right… The very first conversation to the Navy, was with (b)(6), (b)(7)(c) Wednesday evening. And frankly, this is obviously very sensitive and people involved. I didn't want to FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 7 hurt anybody's career, personal life, family… I don't take this stuff lightly. It took me from Monday until Wednesday to have enough confidence that I had enough that this was actually not just a rumor. I'm not going to ruin anybody's career or life based on what people are saying behind people's backs. 17. b6 b7c k2 explains how b6 b7c k2 was notified that AUSTAL USA was aware of her relationship withb6 b7c k2 . Q: A: After you got your 100 percent that you needed to do something about the situation when did you inform b6 or did you inform b6 b7c k2 personally? b7c b6 b7c No. Well, Thursday morning of that week…By the next k2 k2 morning my HR VP, actually knowing my concern, drove by. And he'll tell you this, but he drove by the hotel parking lot Wednesday evening and actually saw together in the parking lot. You (b)(6), and (b)(6), (b)(7)(c) (b)(7)(c) know, getting out of his car and going into the hotel together. So there's this visual confirmation I was looking for…And that's as close as you can get to walking into the room and catching them, right…So that was the 100 percent. HR called b6 in on Thursday morning and confronted her with b7c what we knew and placed her on administrative leave k2 pending investigation. By Friday we put together a separation agreement and she came in and she separated with the company. Witnesses’ Testimony b6 b7c k2 b6 b7c k2 , b6 b7c k2 , AUSTAL USA 18. On 8 March 2012, b6 b7c k2 responded that he and b6 have had a business relationship since he directly b7c reports k2 to b6 b7c k2 , the b6 b7c k2 of AUSTAL USA and b6 b7c k2 is b6 b7c b6 b7c k2 . During the interview b6 b7c k2 k2 stated the following: b6 b7c k2 …she told me she was interested in a person named . She had been dating a person named b6 b6 at b7cb7c k2 for a long time who is also an employee b7c b6 AUSTAL. I had always kidded with her how k2 is b6 ? k2 Because it was an on again off again relationship and b7c she related that she went out partying the night of k2 13 January 2012 and I said were you with b6 ? And she said not that one, another one. Thenb7c we had some discussion about which b6 it was and wek2talked about the fact that it b7c was b6 b7c k2 …I, as a friend, advised her that k2 what she was partaking in was not good because one, if our executive understood that she had a personal relationship with b6 b7c k2 he would not be very happy about that and she also FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 8 told me that he was planning to come back for meetings the next week… and that he and her had basically planned to stay together during that period of time. …I told her that would not be very good. That would put her in a bad position as far as being a person of the company with the customer. Then it was the following Monday or Tuesday, either she called me or I called her, because a lot of times I would call her to find out b6 b7c schedule and we set agendas we had a discussion and she said she was together…So k2 getting ready for work and I said how long before you get in? She said it wasn’t going to be very long and told me she didn’t spend the night at home that night. So I understand from that conversation, combined with all the other conversations that she had in fact started staying with b6 b7c k2 somewhere and she was getting ready for work… this was just speculation because she did not give me specifics. She alluded to, but did not give me came forward and started specifics. b6 b7c k2 telling me that b6 b7c k2 had brought out facts at a bar one night about conversations that she was having with b6 b7c k2 that involved business between the company and the Navy. I was very concerned at that time. I admittedly didn’t bring it to the attention of my management as soon as I probably should have but when b6 b7c k2 told me that there was potentially a grave conflict of interest developing, they were sharing information about management and the program and discussing that back and forth. I decided to inform b6 b7c k2 of that known relationship between andb6 b7c k2 . b6 b7c k2 …We were hosting a week’s worth of meetings that had to do with the management of the LCS program. Since he was the b6 b7c k2 he and (b)(6), (b)(7)(c) and I think a few others were coming down-and that was when she told me he had invited her to stay with him while he was down here…Our discussion regarding her relationship was over the phone…Having known b6 for a long time I know that I pretty much b7c b6 b7c assumed that it involved….her normal persona was k2 to k2 party… it had gone from a social to a more physical relationship. Again, that’s an assumption because she never said they entered into a sexual relationship. But when I asked her to think about what she was getting into she said that he had, b6 with b6 b7c , had mentioned that if there was problem b7c her boss he would take care of it. k2 k2 FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 9 b6 b7c k2 , at b6 b7c k2 AUSTAL USA 19. On 1 March 2012, NAVSEAINSGEN interviewed b6 b7c k2 . During the interview b6 b7c k2 was asked about her knowledge of the relationship between b6 b7c k2 and b6 b7c k2 . b6 b7c k2 stated the following: I handle our special security agreement and I’ve been with the company for almost five years. b6 b7c k2 is a co-worker. She was hired in 2008… but we didn’t have a relationship until the past year and a half. and I met for drinks after work at a bar in b6 Fairhope, AL on January 17th and she mentioned that b7c she was datingb6 b7c k2 … she kept getting text k2 messages from people on match.com and I asked to see her phone because I’m on match as well. She also showed me pictures from the AUSTAL Christmas party. She kept getting texts the entire time. We laughed about a date I had on match.com and I told her I hadn’t had any luck with match.com. She said she was dating another gentleman from a cruise ship but she met someone else, a really great guy. In a weird voice she said, you may know him and she saidb6 b7c b6 b7c . I said who’s that? I don’t know himk2and she said he’s from PEO ships and he comes down for big k2 events and things of that nature. She said he had been texting her relentlessly. I was able to see some text messages from b6 b7c k2 , she didn’t have a picture associated with his name but his name was attached to the text messages. She was trying to show me how much he was texting her. I don’t know if I can tell you word for word what the text messages said but there were two that were pretty clear. Some of the texts were a little risqué. One message said, “I want to be inside you.” I looked at her and I said I cannot believe that is a text message on your phone. I don’t know the timeframe of the text message. I quit looking after I saw, “I want to be inside of you” because that was kind of embarrassing. The other text message was talking about one of our executives and it looked like it was from b6 b7c k2 and it was an on-going conversation about executives and things at work… one text said one of our executives b6 b7c k2 was an idiot. She saidb6 b7c k2 and b6 b7c got into it before one of the Christening events k2 and he didn’t like that announced b6 b7c k2 in a game show like b6 b7c k2 voice. She said he mentioned to her that our executives were incompetent. I said this was treading on thin ice andb6 would freak out if he knew you were discussingb7c this sort of thing. During k2 FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 10 the planning stages of a Christening they were trying to decide something about setting stuff up and b6 b7c was going by had his own way of doing it andb6 k2 the book andb6 b7c apparently didn’tb7c agree with what b6 b7c wanted to k2 do. k2 b6 b7c is the b6 k2of Sales and Marketing. He also handles event planning and would k2 b7 have a lot of contact with b6 c . and b6 b7c k2 had a lot of interaction when planning b7ck2 b6 b7c k2 an event, but I wouldn’t say had a great k2 he and b6 working relationship. From what sheb7c says, he was argumentative about the way he wanted k2 things done. I don’t have to work with any of the executives on that level. I asked b6 whatb6 b7c does and how often he comes down here b7cand she k2 said when anything big happens down here he’s k2 here. I said, you know it’s not going to be good if anyone finds out and she said b6 said he would handle it if b6 was to find out. b7c said b6 he had been married for mentioned thatb7c k2 b7c 20 b6 something years andk2apparently b6 had told her he k2 b7c was going to leave his wife because it was not going k2 b7c well. I told her not to be onek2of those people who believe that. Whileb6 was scrolling through her phone and showing me her called. I know he called b7ctext messages b6 because like “there he is!” and k2 she said something b7c she said, “hey there,k2we were just talking about you.” She told him some lie about being out with a girlfriend who’s really sad because she got a divorce and I’m not married nor was I getting a divorce. It seemed like she had to make an excuse up for being out. After speaking to him for about five minutes at the bar, she walked to the other side of the bar and talked to him. I don’t remember what they were discussing while she was on the phone with him at the bar, only that they were excited about him coming down and her spending some time with him. When she came back she was all smiles and then went into the whole fact of he’s coming down here. She said he’s trying to come down here. It’s going to be during Senior Bowl week and he needs me to help him try to find a place to stay. Senior Bowl week is between the 17th and 26th. b6 said b6 was coming for business for Navy negotiations all b7c b7c week. There were some issues with the Navy and AUSTAL and things k2 k2 were going on. She giggled about it because she said, I’ll be in some of those meetings and I even told him I would wear a skirt for him. He asked her to call him b6 in a meeting and she told him no way she would continue to call him b6 b7c k2 . She said b7c she was a little giggly about it because she had to k2 sit across the table from him. She thought it was exciting because he was a forbidden fruit. She made a comment that b6 b7c k2 and b6 b7c k2 can negotiate over her booty. She mentioned she was FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 11 going to take a few days off because b6 b7c k2 going to be in town. was said b6 b7c k2 called her on 16 January, it was b6 Martin Luther King Day and b6 and I were out at the b7c bar and dinner on the 17th. b7c She said he called her k2 and told her he was lying in k2 bed naked all day thinking about her. She told him, if I was there you wouldn’t be lying there. She said he was nice and sweet and nothing but compliments toward her. When told me she was having a relationship with b6 b6 b7cb7c , I assumed it was one of a sexual nature. b7c She b6 never came out and told me that their relationship k2 k2 was sexual in nature but she gave me looks and giggles. She said he wanted to stay with her that next week when he was down here. I never saw the two of them together; I don’t know what he looks like. She didn’t tell me she was going to stay with him, only that he wanted her to. I just know she was really happy about him calling her and texting her and I cannot imagine b6 in a relationship where there was not sex. Ib7c did not talk to b6 about b6 after the 17th.k2 It was a busy week b7c at work, b7c we b6 b7c didn’t discuss b6 b7c k2 . k2 k2 k2 I called my boss b6 b7c k2 as soon as we left the bar. I usually just count b6 b7c escapades as harmless because they are outside of the company. So k2 I discussed it withb6 and he agreed that she was probably discussingb7c things that she shouldn’t be we all made statements and they discussing. After k2 I shut her badge off on Sunday night, January 29th, received a text message from her. It was very upsetting, she said something like, I thought we were friends, now I know who outed me and something about me throwing her under the bus. I don’t feel like I threw her under the bus. I did not respond to her text. I just hope she finds out that it’s my job to report any corporate impropriety. One of the things that are more concerning to me is that she viewed b6 b7c k2 as adventurous and I could see how she would because she was down in the dumps and here comes this guy with a lot of clout so it’s all very exciting to her. I told her to be very careful with what you discuss with him and she made the comment that “it’s pillow talk and well that’s when men make decisions in bed. Don’t stress because if anything happens myb6 b7c has told me he would protect me and he would k2 handle it.” I was more concerned about the badmouthing of our executives and Navy negotiations. I assumed that maybe they are in bed discussing that kind of stuff and that’s not good for the Navy or for AUSTAL USA. The Navy is our customer and I’d like them to have a good opinion of our executives. Discussing them in bed seems a little inappropriate. FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 12 did mention thatb6 b7c k2 was absolutely shocked b6 that our company didn’t have more females or b7c minorities in upper management positions and the Navy k2 was looking into that. She said b6 b7c said b6 b7c shouldn’t be concerned with who she k2 is datingk2because he should be concerned with his failing programs. I know she’s discussing things that the Navy is looking at without AUSTAL knowing. I know he didn’t have a good opinion of AUSTAL based on the things he told I know he said b6 is an idiot because she b6 picked up her phone and b7c b7c showed me. She said b6 b7c is good friends with b6 k2 k2 b7c k2 . She said he was k2 right hand and she honestly thought that b6 b7c k2 if anything happened that b6 b7c was going to come in and stop it. k2 b6 b7c k2 , b6 b7c k2 of Human Resources, AUSTAL USA 20. On 1 March 2012, NAVSEAINSGEN interviewed b6 b7c k2 . During the interview b6 stated the following regarding his knowledge of the b7c relationship between b6 b7c k2 andb6 b7c k2 k2 b6 b7c k2 : My responsibilities include: (b)(6), (b)(7)(c) I became aware of b6 b7c k2 and b6 b7c k2 relationship based on conversation with b6 b7c k2 and b6 b7c k2 that b6 b6 b7c andb6 b7c k2 may have a relationshipb7c on k2 an after hour’s kind of basis. We discussed our options and resolved that first we k2 needed to tell the Navy about the alleged relationship and do what we could to provide evidence and I didn’t to substantiate the claim. b6 b7c k2 want to accuse a Navy CAPT of something we didn’t have certainty of. The plan was to try to find out whether they were staying the week together in a hotel so we could have a first-hand statement that yes, we did see them together outside of the normal channels of work. The evening of the 24th, Tuesday, we started looking around at local restaurants and hotels to see if we could find b6 b7c PT Cruiser. We didn’t find it at any of the local restaurants where k2 we thought it might be, but we did find it at the Fairfield Inn. b6 had received some information that they were staying at the Fairfield Inn, but I b7c don’t know the source. k2 Wednesday morning on my way to work I drove by the Fairfield Inn at about 7:30 to see if the PT Cruiser was still there. b6 b7c k2 came out at about 7:50 and got into a Nissan Sentra and b6 came out about a b7c k2 FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 13 quarter after 8 and got into her PT Cruiser. We still hadn’t seen them together so that evening we attempted to confirm again if they were together. We found her PT Cruiser at the Fairfield Inn and at about 10:20 or so I went back from my home to the Fairfield Inn and while I was there b6 b7c k2 drove in and got out of the car. I drove by and b6 was sitting in the passenger seat getting out of b7cthat car at about 10:30 at night. I thought she sawk2me and we had eye contact, but I’m not sure. I circled back around the hotel and I got out and took a picture of the vehicles to confirm they were there together at that hotel. I never saw her step out of the car but she was turned as if she were ready to get out of the car. I never saw get out of the car or go into the hotel or anything like that but I circled around the hotel and they were gone but both cars were there. The next day we met again and b6 b7c k2 had driven back to the hotel and confirmed again that both vehicles were there at the hotel. We decided to speak to b6 b7c k2 and b6 b7c k2 was going to meet with that day and let him know that (b)(6), (b)(7)(c) we were aware that b6 b7c k2 and b6 b7c k2 were together. We were concerned that it would place our business at risk because of the meeting taking place outside of the normal pattern of business.b was an and had 6 b6 b7c k2 information about the company that could compromise b 7 our business and maybe was providing that data c outside our normal channels without our knowledge. Normal channels meaning betweenk the hours of 8 and 5. 2 out what the purpose We wanted to talk to her to find of her meeting was. We have meetings, talking points, there is a purpose for the meetings that is clearly stated and understood. There are executive meetings that take might take place behind closed doors that aren’t necessarily defined by agenda but the meetings we have with our customer have a clear purpose. For one of us to be meeting with the customer in an unusual kind of way…we don’t know what is being discussed or exchanged and don’t know what kind of risk we are in as a business if there is some sort of accusation we are trying to influence the Navy, a key decision maker, outside of the normal work channels. When confronted she refused to tell us what they were talking about other than to say it’s none of your business but I wouldn’t do that. We asked what the conversations were about that took place and she refused to tell us. After meeting with b6 , after 5 pm was personal b7c she had with b6 b7c k2k2 company. We placed her further investigation. she told us what she did and none of the conversation had anything to do with the on admin leave pending After a few days we arranged FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 14 a mutual agreement to separate and b6 employed here. b7c is no longer k2 What was explained to me is that a relationship outside the normal channels would be a violation of the Code of Conduct. So to accuse a Navy Officer, a decision maker of our major program, is a major concern if it would place him at risk because of this Code of Conduct, we would need to know with some certainty that this relationship was taking place. What they were doing wasn’t as relevant as what kind of conversations they were having. I don’t see any reason forb6 b7c k2 even as the to the b6 b7c k2 or as an b6 b7c to have any reason to be at the Fairfield k2 Inn at 10 p.m. I don’t see any reason why any discussions couldn’t take place during normal working hours. b6 b7c k2 b6 b7c k2 I have to assume what was happening in the hotel was personal. I don’t know what was being discussed. She is theb6 b7c k2 , she is the b6 b7c k2 , she knows the business strategy and b6 b7c k2 he’s (b6 b7c ) theb6 b7c k2 and knows a lot about k2 our business. Even if it was personal, this reference to pillow talk,b6 used the word pillow talk; this pillow talk could b7c compromise our ability. k2 It would have been Thursday morning on Jan. 26th that we spoke to b6 b7c k2 about the appearance of the relationship and I think she came here and was in my office at about 8:20 that morning. I don’t know if she was surprised that we were aware of the situation. I can’t say that I could tell what her reaction was. She stated, I have rights and you’re violating my rights asking me these questions. My life after 5 pm is my own life. had responsibility for a major program b6 and had very sincere interest in how we would staff b7c up to meet the requirements and would ask questions k2 during the course of our presentation. He was part of the review team for the proposal and I was in front of him in DC and he asked good questions but I never had the occasion to be meet with him beyond that kind of level of presentation and asking of questions. was not very personable but he was b6 concise in his questions and bright. He knows his b7c job. k2 I called b6 on Thursday from my office and asked her to come to b7cmy office before she reported to work. She did not k2 seem surprised, she said okay. I never got the sense she knew why. I’ve met with b6 in my office on other occasions, but whether she b7c was aware k2 FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 15 of it, I don’t know, we had eye contact the prior evening. She may have said “okay, I’m going to have to go talk to them, he saw me,” but she never acknowledged that. She said after 5 it’s my own personal time. I recall her saying she had spoken to a lawyer about her rights but I don’t remember when it was. From my perspective the key was that I saw them together and no one else did. When I say I saw together I saw b6 b7c k2 exit the vehicle and b6 b7c k2 in the passenger side with the door open 10:30-10:35 at night. b6 b7c k2 , them b6 at b7c k2 for AUSTAL USA b6 b7c k2 21. b6 b7c k2 was interviewed on 1 March 2012. b6 b7c k2 confirmed AUSTAL USA conducted an investigation into allegations of an inappropriate relationship between b6 b7c k2 and b6 b7c k2 from 24 to 26 January 2012. was our employee. She was theb6 b7c k2 to our b6 b7c k2 . for certain She was also the b6 b7c k2 events, for example Christening events. b6 b7c k2 has been working for the company over two years. b6 duties include keeping b6 on track, b7c b6 b7c k2 maintaining his schedule, control k2 b7cthe entry and exit out of his office, and coordinate k2 some communications. Her primary role was to keep his calendar and keep him on track and coordinate his daily events. She also took an active role in helping coordinate up-keep, cleanliness, and décor; trying to enhance the beauty of this building. She would attend our leadership meetings and she was very active in supporting b6 in his monthly reports to the AUSTAL USA board.b7cShe organized the board meetings that would be k2 held here and I think she sat in on those. As the b6 b7c k2 , b6 looked to her to establish the invitee list, scheduling the b7c location, making arrangements for preparing k2 the site, catering, organizing the staff volunteers to support the event, to the extent you need to communicate with the guest, attending the event and making sure everything went smoothly, cleaning up after, and viewing invoices. That’s generally what I saw her do. b6 b7c k2 b6 b7c k2 didn’t work directly for me but the b6 feedback that I heard from b6 was that he was b7c pleased with her work performance. She kept his k2 b7c calendar, he was pleased with k2 how the events went, which is important because we get a lot of important people there. At the same time he’s expressed some disappointments with her. She was involved with a FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 16 couple of relationships with people at AUSTAL and he expressed those concerns with her because she works for the b6 b7c k2 and she has access to a lot of information. She came under some scrutiny for who she dated. She had a b6 that went through our Apprentice program and she b7c wanted to use him as a paid volunteer on some of these k2 events and she was advised that really wasn’t a good idea because it wasn’t open to everyone. So she was was happy with her actual challenged on that. b6 job performance but there were some things she did b7c that raised concerns.k2 I became aware of the relationship between b6 on the 25th of January. b7c At that b6 b7c k2 and b6 time, I wasb7c involved in a three week trial k2 so I wasn’t in my k2 office much. I was in b6 b7c office for a quick 5 minutes and later that afternoon I followed k2 up with b6 b7c k2 and got some more information. There was a problem with b6 b7c k2 and b6 b7c k2 having a relationship you assumed she was staying at his hotel room for at least the two night period we were aware of. You have ab6 b7c in the United States Navy and direct authority k2 over our programs, someone we have to negotiate important parts of our contracts with, he’s a critical person to the success of the program and we have an b6 b7c k2 to the b6 b7c k2 who has vast knowledge of what the does, leadership meetings, and we think b6 b7c k2 it’s of a sexual nature. We had an issue with that because one we don’t want to have any perception out there that we are sending our b6 b7c k2 out to sleep with CAPT’s of the Navy to b6 b7c k2 gain influence. We can’t have that happen and can’t have that perception out there. Second, we also don’t want employees of AUSTAL putting themselves in a position where people are trying to get information out of them. That gave us enough concern to bring her in and have her explain the nature of that relationship. We gave her an opportunity to give us a plausible explanation as to why she was spending a lot of time with him, but there wasn’t. She stated, what she does on her own time is her own business. We don’t want the wrong perception out there with how AUSTAL does its business and we don’t want our employees putting themselves in a bad position with this pillow talk. I believe the relationship was sexual in nature primarily from the interview with b6 b7c k2 . During a dinner she had with b6 there was discussion of b6 b7c relationship with b6 b7c , text messaging back and forth that k2 b7ck2was of a sexual nature, and b6 b7c own statements tok2b6 b7c k2 discussing the Also, on at least two nights their relationship. k2 cars were parked at the hotel close together, they left minutes apart, and they were observed arriving FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 17 at the hotel together and their cars were there the following morning-it wasn’t like one person left. offered up no explanation. b6 b7c On the 26th of January I drove in to work and drove k2 past the Fairfield Inn and observed b6 b7c k2 and vehicles parked together at the hotel. b6 b7c k2 We had a meeting with myself, b6 , b6 b7c (the b6 and we decided inb7 b7c tok2call b6 b6 b7c k2 ), and b6 immediately. b7c That was whenb6 k2 didn’t offer c b7c anything k2 up in the way k2 of explanation The meeting b7cor denial. k2 lasted at least an hour. Following that we put her k2 on administrative leave until we could conclude the investigation. b6 met with b6 at 4pm on the 27th and she was terminated. I amb7c not aware of any video b7c surveillance obtained from a k2 hotel but I know b6 k2 did observe them in the same car arriving b7c b6 b7c together. k2 k2 I am not aware of any instances where b6 b7c k2 has demonstrated any conduct where he would use certain information and leverage it over the company. , b6 b7c k2 b6 b7c k2 22. b6 b7c k2 the following: for b6 b7c k2 of Shipbuilding Gulf Coast was interviewed on 2 March 2012 and stated I am familiar with the issue of the inappropriate relationship between b6 b7c k2 and b6 b7c k2 . My job is to for the (b)(6), (b)(7)(c) shipbuilding contract. I represent the b6 b7c k2 b6 , which is my primary command and direct b7 b6 b7c k2 report and I’m also a dual report to b6 b7c k2 c PMS 501 and represent his interests to the b6 b7c k2 k2 . As the b6 b7c k2 b6 b7c k2 acquisition authority; executing the contract that PMS 501 is awarded, I represent both PMS 501 to the shipbuilder and to the supervisor of shipbuilding as well as being a lead to the supervisor of shipbuilding on site. has to execute the acquisition plan as b6 part of the Navy’s new construction shipbuilding b7c program. He works for PEO LCS; his duties include k2 acquisition contracts and awarding contracts for General Dynamics and Lockheed Martin. He also manages additional class one changes and additional requirements to be added to the contract, so he’s the manager of that change as well. I was TDY the week of 23 January 2012 to Advance Management Program in Newport RI, so I was not on FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 18 site that week. I don’t recall seeing b6 b7c k2 in company the night of 13 January 2012. I’m trying to think about the period before the dinner started in the lobby, but the only time I saw was at the table where you initially b6 arrive and she was with several other ladies. I did b7c not participate in any activities after the dinner, I k2 went home. b6 b7c k2 was coming down on the 26th to conduct a review of the program. In this instance, AUSTAL and General Dynamics, BIW had been working on a delay to the delivery date of the ship because of a number of factors. Due to this we pushed the info up to SUPSHIP Gulf Coast and PMS 501. PMS 501 takes information to b6 b7c k2 so he can notify the Navy chain of command and congressional oversight. As a part of that process b6 b7c k2 had multiple questions about the schedule change so we could be confident the new schedule would be executed going forward. The Program Office came down in the days leading up to that to go over the shipbuilder’s presentation to make sure it was of sufficient quality. b6 b7c k2 andb6 b7c k2 came down from the program. There were several others but I would have to check my emails to remember. b6 b7c k2 been down once before since I’ve been here and it was not a specific schedule review so I really don’t know if that’s a standard practice for how long it would take for someone to come and prepare for a review. But I do know we had a lot to go through with the shipbuilder in advance of that visit because there are so many elements to go through with the schedule change. You have to dissect each individual milestone and linkages and individual plans. It’s very slow and time consuming so it didn’t surprise me at all that they were going to take Monday thru Wednesday. b6 b7c k2 It didn’t surprise me that b6 b7c k2 would participate in this process because it was the first time b6 b7c k2 was going to come into town because he had a problem with what was going on. For 6 months leading up to that we had been working on it at my level and when we didn’t solve the problem it got elevated to b6 b7c k2 level. It’s extremely unusual to issue three new schedules in the whole execution of a ship building contract, let alone a fourteen month period. It’s unusual for a program manager to have to participate but I think it was necessary due to the issues we had. It didn’t strike me as odd that he was here but it upset me thatb6 and b6 b7c k2 had to come down for this. b7c b6 b7c k2 k2 I first met b6 b7c k2 b6 b7c k2 in 2004 or 2005. He was the with PMS 317 and I was the FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 19 …I first met him working that project. b6 b7c k2 is extremely knowledgeable and focused on getting the product delivered on time, on budget, on schedule, on quality. He was very focused. We had long painful meetings because he was very demanding that people perform and hold the contractor accountable. b6 b7c k2 I failed the select for Commander on my first time up and I was shocked. b6 b7c k2 asked me to come see him. I went and saw him and he helped me come up with a plan of the things that I needed to do before the next selection board and we met five or six times the next year. Before that we had never interacted personally, but it worked and I was very grateful for it. pulled me aside and told me b6 b7c k2 b6 had been relieved because of inappropriate conduct b7c with an AUSTAL employee. He said it didn’t make k2 sense; it’s very disappointing if it’s true that b6 would do something so stupid. I couldn’t imagine b7c a , especially one of our best and brightest doing k2 b6 something so stupid and it seemed out of character to b7c me. A guy who is always on the job and focused, it k2 didn’t make any sense to b6 or me. But stupid stuff happens all b7c the time I guess. I never met his wife nor did I even k2 know that he was married. I know he’s a Red Sox fan, that’s all I know about his personal life. I have never seen b6 b7c k2 go out drinking. I do know folks who go out and stay at the Casinos, but in all that time I never knew of or heard thatb6 b7c was one of those folks who did that.k2 He flies b6 b7c in, shows up at work, and works until he flies out. k2 He’s had almost no downtime that I’m aware of while he’s been here. It seemed to be relevant if he’s here just screwing around, but it’s been very difficult to get time on his calendar because he’s working, in meetings, going from issue to issue to issue when he’s in town. , b6 b7c k2 , b6 b7c k2 AUSTAL USA 23. On 3 March 2012, NAVSEAINSGEN interviewed b6 b7c k2 b6 b7c k2 at her residence in Mobile, Alabama regarding her (b)(6), (b)(7)(c) relationship with . Q: A: Q: A Can you tell me what you did at AUSTAL? I had dual roles. I was the b6 b7c k2 the b6 b7c k2 and b6 and I was theb6 b7c k2 . b7c b6 b7c k2 How long were you k2 employed by AUSTAL? Three and a half years. to FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 20 Q: A: Q: A: Q: A: Q: A: Can you tell me when you first met b6 b6 b7c ? It was at a meeting at the MMF. k2 b7c I k2 probably had met him prior to that but I don't recall.b had a meeting, and I'm not 6 quite sure who b6 b7c k2 was there. It was one of the distinguished visitors b 7was part of that that was coming in. Andb6 b7c k2 c presentation and tour. But we were having questions in reference to the ship christening kfor the JHSV or not JHSV, I'm sorry LCS. And it was 2a big question about how we were going to get to the bow of the ship to break the bottle and if that was necessary or to break it on the (inaudible) and so b6 b7c kind of put me out there to talk to b6 b7c k2 k2to get a decision made, because we were about three weeks away from the event. So it would have been about three weeks before the christening of Coronado. When was the christening? January 17th; 14th, 17th. I can't believe I can't remember that day. Could it be around January 13th? Yeah, that would probably -I think that was a Friday night? That would have been the night of the dinner. The actual event should have been the 14th. The christening itself would have been the 14th. 24. b6 b7c k2 describes her activities during the dinner on the evening of 13 January 2012. Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: Did you attend the dinner? I did…my role was to plan the entire event so I was the event planner for that. I made all the arrangements. Was b6 b7c k2 at that dinner? Yes, ma'am. Did you have any interactions with b6 b7c k2 during the dinner? Not during the dinner. After the dinner? Yes, ma'am. Can you tell me what that interaction was after the dinner? I can. Everyone went across the street to the bar Veets and so I had interaction with him there. When you say everyone? I'm not saying the entire dinner party. But a great share of people there were Navy. The crew for the ship; our planning committee, quite a few members of our planning committee; some of our executive leadership team; other AUSTAL people; other dinner attendees. There was quite a few people that went across. So more than 20 people? Oh, I'd say probably more like 40. How long did you guys stay at Veets? FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 21 A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: 25. We were not at Veets more than I'd say an hour and then a group of us went to Dahlia's, which is a piano bar. A smaller group? Yeah, a smaller group. Was b6 b7c k2 part of that group? Yes, ma'am. Now, Veets is a bar? It's a bar. Did you have any interactions with b6 b7c k2 at the bar? At Veets? Yes. Just some general conversation and that was kind of orchestrated through b6 b7c k2 and b6 b7c k2 . What do you mean by orchestrated? andb6 b7c kept encouraging the b6 b7c k2 conversation. k2 And then you guys all went to the -Dahlia's. The piano bar? That was b6 b7c k2 idea for them to go. I was leaving and going andb6 b7c k2 ensured that they went as well. How long did you stay at the piano bar? And I can also tell you that b6 b7c , the girl from the crew, she was at the piano --k2she didn't go with us but she was there. Probably about another hour. It was late. I mean, it was late by the time the dinner was over and then we had an early morning the next morning so I'm going to say an hour. I'm not for sure, but I'd say about an hour. When you say b6 b7c and b6 b7c k2 encouraged the conversation k2 what exactly does that mean? I have more that I'll tell you but I was going to answer your questions and then I was going to kind of put it all together for you. described her position at AUSTAL. b6 b7c k2 Q: A: Just go ahead and put it all together for us. First of all I want to tell you about me just so you understand me. I've been an b6 b7c k2 for more than 20 years, always worked for professionals, always been professional. I am honest. And there's two things I cannot stand. I cannot stand a liar and I cannot stand a thief. And there are people that can attest to my professionalism and credibility. So what I'm telling you is exactly what happened. And this is hard for me, so I might go get a tissue. FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 22 26.b b6 b7c6 k2 b 7 c k 2 characterized what it was like to work for . b6 b7c k2 I work for b6 b7c k2 and b6 is an interesting leader, the only one of his b7c type that I've ever worked for in my 20 years. k2 Highly volatile, very moody, very stressed, very much a controlling person. And it's nothing for -- he leads by intimidation, threat and intimidation. When he doesn't get his way he's very, very angry. …b6 b7c k2 was very point-blank and very not so nice. At first I was very offended by him in the meeting where I was asking about the christening. We were catching a lot of grief through the back side, through b6 b7c k2 and b6 b7c k2 and different people about this christening and it will happen on this day, because b6 kept trying to move it out until March. And I'mb7c not sure who wouldn't let it be moved but b6 was k2 mad. We weren't ready. The ship wasn't ready. b7c There were problems. The ship had just moved k2 forward six inches. We just had a lot of mess going on. And so our job, b6 b7c k2 and I were supposed to try to persuade b6 b7c k2 to allow the christening to be moved to March. That was shot down immediately. He said, "It will happen in January." So then the next thing was the clarity about where to break the bottle. And he was just very rigid, pointblank. He was just very commanding. Part of my job was I escorted and helped and set up the tour. And I think he might have realized that he was kind of gruff with me and so at the end of the day he apologized, shook my hand and was nice. My boss was not in the office that day so b6 b7c k2 was handling the entire visit and tour. b6 was in Washington. b7c k2 And when b6 returned he wanted me to give him a brief of b7c what happened. You know, "Are we going to change the k2 day? What did they say about the christening? How does the platform have to be?" That kind of thing. Because there's a lot of expense involved and we were three weeks out and there was a lot of things that had to be done. And so I told him the story, like when we met he was really mean and dah, dah, dah, but by the end of the day he was very sweet, very nice and pleasant. …This is not the first time my boss has made a comment like this, or a request like this and I will give you another "for instance" that you can check out. Q: Before you do I just want some clarity right now. Why did it fall on you to try and get the date changed? FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 23 A: There is not a great process at that company. I was a one-man band… But nobody ever would meet with me and talk to me. Everybody like on the fly and on the run. So they just kind of like throw you out there. "Well, here'sb6 . She's the one who does all her planning for b7c it. Let's ask her." So that's how it was put on me… k2 My report to my boss was that it wasn't, like at first it wasn't pleasant. He was very gruff. And then he was very nice and apologetic and by the time he left he was smiling and laughing and everything seemed fine. My boss the next day says to me -- we meet typically on a daily basis. I would bring a folder, a working folder to go through. We were meeting about the event so I brought in all my binders. And he said, "You need to get close to ." This is not the first person he's told b6 b7c k2 me that with. 27. b6 b7c k2 describes howb6 b7c k2 a personal relationship with b6 b7c k2 pushed her to develop . He was like, "We need to get on his good side. We need to be his friend." He's like, "We are in a lot of trouble here. We've got a lot going on." Which I sit in the leadership meetings so I know financially is the king of his we have a lot of problems. b6 kingdom and nobody is going b7c to tell him what to do kind of a thing. k2 And so I'm like, "Okay." The other person he asked me to do this with was b6 b7c k2 .b was a b6 b7c k2 out of Mississippi. 6And that was right after I first started. And b6 b7c k2 b was a person 7 who b6 bumped heads with and was like an absolute c hater, in the press, b7c if you will, of AUSTAL, publicly k me after b6 et cetera. And he had asked that of k2 b7c b6 b7c , our leadership group made a2 big deal because was very nice to me in the lobby and k2 k2 b6 b7c k2 shook my hand and gave me his card and was talking to me about places to eat around the area. And he asked for my card and I gave him my card and b6 said, "If he ever calls you, you go to dinner with b7chim. You go. We need that." k2 Okay, this is how my boss thinks. Not on strategy of how to fix things, how to -- the wrong side, the back door side. Things that b6 referenced, and I kept them. We had a b6 b7c k2 b7c from our board of directors. k2 JHSV, the EAC and the b6 b7c in trouble with the overall cost. That's one thing that they go through. k2 And then again on the LCS, same thing… (I consider discussions of company directives and potential profit/loss to be company proprietary data.) There was a big review coming up on the ships and I believe b6 b7c k2 was the person who was leading all of that to try to figure out what the FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 24 hell is going on at this company. And so they were crashing heads bad. And there's a lot of closed doors, a lot of arguing, a lot of screaming, a lot of stuff coming from our board. I honestly don't believe that b6 survived the December board meeting. He honestly started packing his personal things and b7c taking them home. They gave him until March. That's k2 why he's trying to push the ship christening and everything off… describes the actions of AUSTAL employees on 13 28. b6 b7c k2 January to facilitate a relationship between her and b6 b7c k2 . told me that I would be needing to go to Veets, b6 that they were going to wrap up all the speeches, b7c wrap it up early. Everybody was going to go across k2 to Veets. Go to Veets. I'm tired. I've got a lot of things to do. I've been working. That particular week I worked 90 some hours. …b6 put me at the hotel, which was not uncommon. He put b7c me there early. I went to the hotel on Tuesday, Ik2believe, Tuesday night or Wednesday. Q: A: Q: A: Which hotel is this? The same one that the b6 would be at, the Riverview…Because thatb7c was their host location. So I live here. But that'sk2not uncommon because I work such long hours and I go back and forth and do my meetings. But b6 was like, "Book yourself into the hotel. Take every b7c opportunity. Go for drinks. Go for dinner." k2 Did anyone else hear these conversations where what I think I hear you saying is b6 trying to set the situation so you would be close to b6 b7c k2 ? b7c I'm going to tell you that k2 I believe that he may, he had to have had some type of conversation with a couple of other individuals. He had to have had a conversation with b6 b7c k2 and b6 b7c k2 because he told me that they were going to ensure that they had the b6 over for drinks. b7c And when I got to k2 Veets, because I had to wrap everything up, close and lock the office and go over, when I got over to Veets b6 b7c k2 and his girlfriend, his live-in girlfriend -- her name is b6 b6 b7c -- were there and they were talking to the b7c . But b6 b7c k2 was part of that group, too. k2 k2 b6 So I really wasn't clear who he was over there with. b7c I didn't like break up in there and, I didn't k2 forcefully do anything. I just kind of stood there. It was me, b6 b7c k2 and b6 b6 b7c k2 , b6 b7c k2 . The three of us were standing b7c there. Now, mind you, we came over in the outfitsk2we were in and the b6 then was in just regular jeans and shirt. He was b7c just like casual. So to me, honestly, he looked k2 FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 25 different and I wasn't even sure if that was him because I've only seen him in like the military, you know, his hat and everything. So I asked b6 b7c k2 , I'm like, "Is that b6 b7c k2 ?" And he goes, "Yeah, yeah." I'm like, "Okay." Because I didn't even know. So he would remember I asked if that was the . b6 b7c And then it was very, very busy and it was hard to k2 talk and everybody was shuffling and moving. And b6 said, "Is there another place around hereb7c we b6 b7c k2 could all go?" And I said, "Oh, yeah, my favoritek2 place, Dahlia's piano bar." So then I'm like, okay, is probably the person I'm supposed to be hanging b6 out with then tonight. So I said to b6 b7c , I said, b7c "I want to go to Dahlia's." Mind you, k2 k2 we're tired and it was cold and we had on heels. She said, "Are we going to walk?" And I said, "Well, yeah, it's like about three blocks.”… We got over there. We got a table. And so the b6 sat next to the wall and I sat right next to himb7c so I could talk to him, get to know him, what I was k2 supposed to do. Be friendly, be flirtatious. I'm not proud of this but I absolutely was flirtatious. What I did not know was I did not know he was married, okay. When b6 started all this I had no idea the man was married. I did ask and he did say b7c he was married. k2 Q: A: Q: A: Q: A: Was he wearing a ring or anything? No. No ring. That's why I asked. And this was the night of the 13th? This is at b6 b7c k2 at the piano bar. So knowing how is going to react I'm like, "Oh, shit." Because b6 wanted pictures of us out hanging out together. b7c b6 Well, he didn't, theb6 b7c didn't want any pictures. k2 b7c So who won? k2 k2 So I got no pictures. But the thing was I then started with, I then started in on him about, "Happily married?" Which, that's so wrong. Okay, it's wrong. I know it's wrong. holds the purse strings to my income, which is my b6 family, which is where I live. I have ab6 who has b7c a b6 b7c k2 . My b6 works at b7c AUSTAL. I k2 have a whole lot of people b7c that my boss k2 has control over. My b6 works at AUSTAL. My b6 b7c k2 works at k2 AUSTAL. And b7c the b6 b7c k2 works at AUSTAL. And I have a b6 k2 b6 b7c k2 that I date and he's an b6 b7c k2 at AUSTAL. So,b7c you know, this doesn't set well with anyone to be honest k2 with you. So I don't know, I'll just equate myself to like less than a two-bit hooker. I swear to you, I swear to you I threw myself at this man in the worst way. That is not good. Walking back I asked if I could wear -- he had a jacket. He didn't give me his FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 26 jacket. b6 b7c k2 gave me his jacket to wear back.b when we were going back, before we left bought six beers from the bar, which you are 6 not to b take beers out of the bar. 7 And b6c -- I'm a beer drinker. I drink Bud Light. k was drinking beer but I don't think they The b7c b6 2Bud Light. I don't remember, but I'm thinking werek2 b7c maybe k2 it was Miller or something. It wasn't Bud Light. I know that it wasn't Bud Light. It was different than mine. And b6 shoved the beers in pockets that was in the jacket that I was wearing. b7c And when we were going outk2he was like, "Just hold them. They will not know that you have them." Okay. He was like, "We'll go back to the hotel and sit in the lobby and have some drinks." Okay. So that's why I'm telling you b6 b7c k2 had to be in this equation, had to. There's no other -- I can't tell you that for sure, but he had to. He had to. We got to the hotel and b6 b7c k2 said he was tired, he was done…And here I'm with this jacket with these beers, but I know what my mission is so I'm not going to be tired…It was after midnight or around midnight. It was late…When we got to the hotel b6 initially sat with us. b7c k2 Q: A: In the hotel lobby? Yeah. When you go in the lobby where the bar is and if you stop over there and look, when you come in the doors you go around this water feature thing and the bar is there and there's all these cozy seats. That's what I call them. So it's like little mini like loveseats and tables and chairs that are close together and little groupings of people that can sit and talk. b6 initially sat with us and drank. And the reason b7c I know that it wasn't the right beer was because he k2 gave the b6 a beer and he goes, "That's not the beer I drink." b7c That's how I remember that. But they drank anyway called k2 with us. And then b6 and I in the it a night, so that it was just the b6 b7c lobby. k2 b7c Q: So how long do you think b6 stayed there with you guys? For how many beersb7c did he drink, one, two? I'd say one. One. k2 And which hotel was this? The Riverview. Do you know, was the bartender there? Nobody. No, it was closed. Oh, everything was closed? We were the only people sitting in the bar area and it was really dark, like the lights were down. I think they keep -- I don't think it's really bright through that area anyhow. You have this big wall behind you. But it was really, really dark. Not lit…So we had some more drinks. I'm absolutely, I am like the worst at throwing myself at this man. I kept touching his leg. I kept touching his arm. I k2 A: Q: A: Q: A: Q: A: FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 27 kept laughing. I kept flirting. I keep asking if he was happy. And then that was it. further describes the pressure from b6 b7c k2 29. b6 b7c k2 develop and document a personal relationship with b6 b7c k2 to . So the next day, move forward to Saturday morning, this is my huge disappointment morning. This is where I knew I was going to catch the wrath of b6 I'm the And out Q: A: b7c down tired, very tired. b6 catches me…So I go k2 hall and he said, "How b7c did it go last night?" I said, "It went really well. You know, we hung k2 at the bar. So we went to Dahlia's… And he's like, "Well, who knows?" And I'm like, "Well, you know, there was a lot of people around." He goes, "Yeah, well, did you get pictures?" And I said, "No, he wouldn't let me take pictures." And was pissed. (b) (6), What was the point of the pictures? (b)(7) He together out (c) wanted pictures of me and the b6 partying. So I said, "No, but I b7c did exchange cell phone numbers with him." Because, k2 and I used a ploy like for tomorrow morning to make sure we're awake, make sure I'm there. That was my ploy, you know. "Ring me. If you don't see me, ring me. Oh, my God, help me out here if you don't see me." That was my ploy to exchange numbers with the b6 … b7c Q: A: So I got a text from the b6 after k2 the christening, I think, that was, "Greatb7c event," or something. Something nice. And I texted him back something k2 probably smutty and, I mean, from then forward, I mean, if you can see any of the reaction, if you look at it you're going to know I threw myself at him, like, bad. Bad. I mean, if he said, if he would say something to like, "It's a sunny day," I would turn it into something very sexual. And you also mentioned the text exchanges. Do you still have those? I don't have them. I have my iPhone and I had a glitch with my phone so I had to go and have my phone switched. So I don't have anything that was back and forth unless I can get something from Verizon. Unless, if there's a way to request them and get them then I can get them. But I don't have them in my phone…my phone had a complete malfunction so they switched out my phone. And the only thing that my Verizon backs up is your photos and your contacts. It doesn't back up anything else. So if there's a way that they store it somewhere else I could gladly get that. FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 28 30. b6 b7c k2 describes how she communicated with after 14 January 2012. b6 b7c k2 wanted me to keep in contact. So I honestly b6 texted the living daylights, and e-mails. I sent b7c pictures of myself. Not nasty. I don't do that. k2 I mean, I'm going to step low but I'm not going to step that low. I mean, it's just having fun kind of pictures. I sent pictures and -- Q: A: Q: A: Q: A: Q: A: Q: A: With text or e-mails? Both. Do you still have those e-mails? AUSTAL would. So you were sending e-mails through your – No, they were on my personal. They wouldn't be. I was using my iPhone. Everything was on my iPhone. I could probably go back. What account were you e-mailing through? My Gmail. So they should be on your Gmail. They should be on my Gmail. I can look. I can look back. I don't know how to save them. I delete and archive and I have things where when I delete things -- I don't know what happens with "Sent." I don't know where it goes, how far back it goes… 31. b6 b7c k2 describes meeting Tuesday, 24 January 2012. b6 b7c k2 for dinner on So he was having a problem getting a hotel because he was going to stay back at the Riverview. And he sent me a note that said, "Everything's booked. Can't find a place to have a hotel." And I said, "You could stay across the bay," where I suggested to you… And then I just kept saying, "You owe me a thank you. You owe me a thank you." And I worked him like a fiddle. Not proud of it, but I did it, okay. And so he came in town. They had meetings on Tuesday. I've got to get my days in order. They had a meeting on Tuesday and I had made arrangements to go to dinner with him Tuesday night. It is very unheard of for me to leave work at 5:00 but I told b6 that I was going to dinner with the , so heb7c ensured I was leaving…The man was wanting b6 pictures and k2 I was like, "I'll get them." And I had b7c sent things to the b6 too about pictures and he k2 said he wasn't intob7c any kind of public displays of affection and pictures and any of that kind of stuff. k2 I mean, he basically told me that… …I left right after work and I met him at the hotel. I would say 5:30, 6:00. Because I think, I don't know what -- the band wasn't going to play until very FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 29 late. I think they were only playing like 6:00 to 8:00, like a couple hours or something. So we were down there in time for the band. It's a good 45minute drive down to the beach. …if you get me drunk I am like a wild lady, and I had made sure I was drunk. I was drinking from my car to wherever. You know, I was hammering them. If I'm going to do this I'm not going to do this shit sober. So I got insanely drunk and I decided that we should go out somewhere not near here, so I suggested down to the beach. And I suggested we go to see a band that I like called Sugarcane Jane…they were playing at Joey's North Shore Grill. And I had never been to that bar but it's far enough away from here, where we would see people that we would possibly know. And I felt that that was the best so that I could get these risqué, fun, wonderful photos that my boss is looking for that, you know, are going to make him happy. …I did not get a photo. I swear to you, I didn't get a photo. He wouldn't let me. He didn't want photos. He wasn't as into me as I was throwing myself at him kind of a thing. But, I mean, I'm telling you what. If a woman's throwing herself at you, all right, it's not easy, I'm sure, on his end. I tried to sit on his lap. I stood up and leaned between his chair. He'd asked me to sit down. I kept drinking more and more and more and more. I was way drunk, way fun, way hanging off of him. And then we went back and I informed him I couldn't drive. 32. b6 b7c k2 states that she spent the night in b6 b7c hotel room on Tuesday, 24 January 2012. …there's a Fairfield and a Marriott and he was at the one on the right, which I think is the Marriott. I think the Fairfield is this one and I think this is the Marriott. One or the other. They're the same property. And we were parked out back. And so I went up to his room and he had two beds and I stayed there. I literally passed out. And you can ask anybody that goes out with me. You put me in a car and I'm drunk, I have about 80 percent of I don't remember. I honestly do not remember…But I black out. I don't remember. If I get to a certain point, if I drink beyond this oblivious amount, which I did, when you put me in a car I'm like this. Mouth open, drooling. I'm like catatonic. And b6 b7c can tell you, b6 b7c , anybody. Anybody that's k2 been out…I can drinkk2a lot and then I'm done. When I tap out, I tap out. I'm done… FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 30 33. denies having sex with b6 b7c k2 b6 b7c k2 So I literally, I honestly had, I know I didn't have sex. I know I didn't. I mean, b6 has grilled me, "Are you sure? Are you sure?" b7c I didn't. I had my clothes on in the same way I left. k2 Q: A: When you sayb6 b7c , which b6 ? Oh, I'm sorry. k2 b7c . I need to clarify. b6 b7c k2 My b6 b7c k2 name is b6 k2 . Sorry. That b7c k2 is confusing. I should have said that. Anyway, I have what I call a ditty bag I travel with anyhow. Typically it's in my car. So I have always a change of clothes. Because if I go somewhere and I drink I've got to be able to change and go to work in the morning, and I do drink… So I have my ditty bag. I just got ready and I went to work. Again my boss asked me did I get pictures. "No, I don't have pictures." But he was busy and he couldn't talk to me… 34. b6 b7c k2 describes b6 b7c k2 attempt to locate visiting Navy officials on Wednesday, 25 January 2012, prior to meeting (b)(6), (b)(7)(c) at his hotel to report the inappropriate relationship between b6 b7c k2 and b6 b7c k2 . And so I didn't get what I needed. And Wednesday I went to the GMAC Bowl thing. The b6 had plans already. I'd already tried to getb7c him to go with me. He was meeting his deputy something k2 or other. I don't know what his name is. His deputy officer, deputy program officer, deputy something officer. Whatever, whoever's under him. I don't always understand the ranks. He was meeting him in a group for dinner. So they were going, I think, to Wings, because I did ask where they were going because I was going to try to catch up to him. And b6 b7c and I, my girlfriend from work, went to the GMACk2Bowl. I had VIP tickets. And that's what I'd asked the CAPT if he wanted to go and that's when he had told me no, he had other things. …I think I was text messaging him. But a weird thing happened that day. Somewhere when was there he said, "Where did you end up putting b6 everyone?" I was like, "Putting everyone?" He goes, b7c "Where did you end up putting the whole Navy?" And I k2 said, "I didn't book for everyone." And he goes, "Well, where is b6 b7c k2 staying?" And I said, "I don't know. I didn't book b6 b7c stay." He was like, "Where's (b)(6), (b)(7) staying?" And I said, "I (c) don't know." He was like, "Where's b6 b7c ? Where's this one?" And I'm like, "I don't know." I said, k2 "But I can find out." I said, "I can find out." And he goes, "Yeah, find out for me." FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 31 So I emailed b6 b7c k2 to say, " (b) is inquiring (6), that very odd, where everyone is staying." I found (b)(7) because b6 knew where b6 b7c was staying. But then (c) I thought, wants to know where b7c well, he probably k2 and all, because the GMAC Bowl was going on. (b)(6), (b)(7) k2 And(c)I think there were three or four names. I don't recall. But that's who he asked me who was staying. So I emailed b6 b7c from my work e-mail, because I would have forwarded it to b6 because he's hitting k2 the skids somewhere. I don't b7c know where he's going. And b6 b7c sends me an e-mail k2 back that said -- that I know k2 it made him nervous as to why I was asking the question. So I said, "Well, just be vague." And he said, "Some of us are on the eastern shore," so he included himself. "Some of them are on Airport Boulevard and some of them are downtown." Something like that. But he gave like a, but general, no specifics, I don't think. I think maybe he actually did say where b6 b7c k2 was staying. I think he actually did name the hotel that b6 b7c k2 would be at, and it was on Airport Boulevard. I think it was a Marriott or something on Airport. …And I thought, "That's really odd. me that? It's very odd." tells of how she 35. b6 b7c k2 during the evening of 25 January states that b6 b7c k2 wanted her relationship with b6 b7c k2 in pressure b6 b7c k2 to overlook Why did he ask did not meet with b6 b7c k2 2012. She also explicitly to develop a personal order for him (b6 b7c k2 to difficulties AUSTAL was having. So anyway, I went to the Senior Bowl. I was drinking. I only drank enough that I could drive myself or in my opinion drive myself back across the bay. I went to Wings to see if the group was still there. I went in, I had a couple more drinks, and they weren't there. There's a bar at the hotel where theb6 b7c was staying, so I ended up going there to k2 the bar and having drinks. And I was drunk. But I stayed at the . I didn't even hotel. I did not stay with the b6 see theb6 b7c at all. And the next b7c day I actually had to rushk2here. I didn't have extra k2 clothes in my ditty bag. I would have had to go back to work in my same clothes… Q: A: Q: …I don't mean to interrupt you but I want to get some clarity around a couple of things. Sure. You said on the 25th when you said b6 b7c k2 had a prior engagement and you had invited him to go with you to the GMAC bowl and he declined and you went out FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 32 A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: to another place but you ended up back at the same hotel he was at but you never saw him. Is that correct? I had another friend there, yeah. Okay. What day was that? I think that was a Wednesday night. That's why I'm trying to get my Tuesdays and Wednesdays. I'm not sure of the actual dates but I believe it was the Wednesday because it was the next morning that all hell broke loose, which was Thursday. All right, so a couple of things. Do you have a receipt for your stay at the hotel? No. Is there any way you can get one? Yes. Okay. Please, if at all possible -It's not under my name. It's not under your name? Okay, whose name would it be under? I'll get you that. I need to ask him if it's okay. I'll get it. Okay. Because, I mean, just to take a step back. What I think I hear from you is b6 b7c k2 wanted to orchestrate a relationship between you and b6 to use as leverage over theb6 b7c because he b7c b6 b7c was having difficulties with the b6k2 . k2 k2 Absolutely. Yes, sir. b7c And you, being a good soldier, ifk2you will, tried to play the part. It's not being a good soldier. I haven't had an option. Okay, you didn't have an option. I don't get an option. When you work for b6 you don't get an option. b7c Okay. There's not an option. When he wants something you've got to do it. It's not an option. All right, so just following this along you threw yourself at the b6 , something you're not proud of. did notb7c reciprocate. Is that an accurate The b6 statement? k2 b7c Not,k2not, like, we didn't have sex. I'm not saying that he didn't flirt back. I didn't say he wasn't giddy. I'm not saying that. I'm just saying I did not have sex with the man. Okay. I'm not saying that he didn't enjoy it or he wasn't probably turned on by it. I'm not going to say that. But there was no final -Intercourse? A: Right. FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 33 36. b6 b7c k2 describes being confronted by AUSTAL employees on Thursday, 26 January 2012, and stated that as a condition of her separation agreement she was not allowed to talk to anyone regarding the circumstances of her termination. And so I got a call on my work phone, which is odd, because AUSTAL don't call me on my work phone… It was and he said, "I need you to stop." I'll b6 b7c k2 back up. That's the day b6 b7c k2 was coming, so we'd have a lot to do. And there's a lot to get done and a lot to arrange, and I'm the one that arranges it all… And so I'm like, "Okay," but then I panicked. I'm thinking, "What's going on?" So I texted the to say, "I got a call from b6 b7c k2 , myb6 b7c b6 of b6 , that I have to go to his office. b7cb7c k2 k2 b6 WTF?" And heb7sent me a note back that said that they k2 knew we had been out to dinner and they knew we had c k2 been out together and that they had pictures. So I'm thinking, okay, this is my thinking, right or wrong. My boss is going to make a big deal for but that I need to just be quiet. Because I'm b6 b7c thinking he's taking care of me, like (inaudible) are k2 supposed to do. Q: A: When you say he's taking care of you? My boss. I'm doing what he's asking me to do. So I'm thinking he's dotting an I and crossing a T. I'm going to go in with b6 b7c k2 and I'm thinking maybe is going to say blah, blah and blah, blah, b6 b7c k2 or give me a message fromb6 , or that b6 is going to be in b6 b7c office. Ib7c don't know what b7c I'm getting into. k2 k2 k2 But something didn't feel right just with the text messages I was getting from the b6 . It just didn't feel right. You know how you feel b7c like you get the bad deja vu, the bad something is k2 coming down the pike feeling? And I'm like, "This ain't good. Something's not good here." So I call my friend that's an attorney…in Illinois…He's like, "You've been screwed. Don't go in that office. Tell them you're not coming. Ask them if you need an attorney. Don't go in the office." And I said, "My boss ain't going to do that to me. There's no way. I know too much." That's what I'm thinking. I know too much. Ain't no damn way he's doing this. So I go into the office and it was b6 b7c k2 ; , the b6 b7c k2 ; and b6 b7c k2 . And I'm like, "This isn't good."…lambasted b6 and told the truth at that point…But I still in b7c my heart and in my mind did not believe he was doingk2what he was doing, okay. And I'm pissed because it started coming together as a whole. You know what, he's getting rid of me. I know so much, beyond the b6 b7c k2 FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 34 girlfriend, beyond the numbers, beyond the false reports, beyond, beyond, beyond, beyond. There's much I know. And how better to get rid of me and you hate? How much easier is that, really? b6 I could just see him. I know what he -- it was a b7c dog and pony show. k2 so a And big was coming for the hard facts. We have issues in that shipyard. b6 didn't want to talk about the issues. What better diversion than this? b7c True. (Specific budget numbers are proprietary.) k2 b6 b7c k2 …And they were like, "You could have shared data. You could have told him things that caused this company harm." That's the first that ever came out. Okay, I have never in 20 years ever, ever done anything that would harm the company that I work for or the boss I work for. And I could have thrown his dumb ass under a bus a long time ago. He is insane and he's hard to work for and I could have gotten rid of him a long time ago if I would have just told the board what he was doing, but that's not my job… …And they kept asking me, "What kind of documentation did you give to b6 b7c k2 ?" "None." "What kind of information did you share about the company with b6 b7c b6 b7c ?" "None." k2 k2 …This was never about me sharing company stuff. It was just about b6 having some knuckle hold so that the b6 wasn'tb7c giving him grief anymore. That's all it was. In my k2 mind that's all it was supposed to be. b7c It was k2 not supposed to be to ruin a man, ruin a man's career, ruin me, ruin my career, ruin 2,600 people's jobs. That's not at all. Now, maybe I had on the short little blinders. They took my phone right away, took my Blackberry, my badge. They took all that on that day. I wouldn't say anything to them. They had these papers. I told them there's more to it. I told them that I wasn't going to be the one thrown under the bus. I did say that, "I am not going under this bus. There is more to this." Because in my mind they were acting like I shared some kind of company confidential…I was offered three months of pay in exchange to not talk to anyone. Not wives. Spouses are in it. The agreement to -- they knew I had to talk to you guys and I had e-mailed them and told them I was talking to you guys and they okayed that I talk to you guys. FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 35 37. describes how she always initiated contact with by text message and how b6 b7c k2 responses were not sexually explicit. b6 b7c k2 b6 b7c k2 Q: A: Q: A: Q: A: Q: A: You said that you were constantly texting him. So he never initiated any of the texts to you? I can't say never. I'd hate to say never because he may have. He may have said something in general. But I think for the most part -- I'm not going to say the word "never" but the overall, I'd say 95 percent of the time it probably would have been me… Did he text you the next morning? Yes…I think I may have texted him. I don't know who texted who first. I'm not clear. But he, the initial text was because I was so rattled during that brief. So he participated in the flirtatious nature of your relationship through the text messaging? Yes. What were some of the things that he would say to you on the text message? Oh, he doesn't go in any detail. I am like the detail person or whatever and he just would, "Ha, ha, ha, LOL," or, "Yeah, me too," or, "Back at you," or, "Ditto." Like in agreement with what I was saying. He never really like at length had anything risqué to say. He would respond. …it wasn't like he would not acknowledge that I just said or that he was, you know, leaving me to linger and wonder… I was insanely graphic. I'm not -- I'm going to tell you, he wasn't. He wasn't. But he didn't discourage it. He didn't encourage it but he didn't discourage it. His responses would be like, "Ditto," or, "Back at you," or, "Same on this end." You know, what, it wasn't like, truly a lot of our text messages was like, "What kind of day are you having, a crappy day, a good day?" That kind of stuff. 38. b6 b7c k2 states that all direction from b6 b7c k2 to develop relationship with b6 b7c k2 was verbal and no written record exists. Q: A: Q: A: So do you have any documentation from b6 b7c k2 , pointing you in this direction to enter into this particular relationship? … Did b6 ever send you an e-mail or a text? b7c and I did not do, b6 and I's k2 (sic) communication b6 was in person at his table. My directives all came b7c b7c from b6 We would sit k2 k2 not at his desk, we'd sit at his conference table… Everything that we did was b7c verbal… I can tell you who I told. I told b6 b7c k2 k2 and b6 b7c k2 . They were my best friends. b6 b7c And what did you tell b6 b7c k2 ? k2 I read b6 b7c k2 text messages between me and theb6 b7c . And one night when I was with her I tried to call k2 FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 36 him. We were, her and I were eating at the, it's a sushi place in Fairhope… We were at a little bar downtown Fairhope first, because we were in the bar when he called because I couldn't hear him. And she was like, "Come on, come on, come on, come on." And so I got off the phone and then we tabbed out there and we went to Master Joe's and ate sushi and continued talking. 39. states that she has not communicated withb6 b7c k2 since 26 or 27 January 2012. b6 b7c k2 b6 b7c k2 Q: A: Q: A: Q: A: When did you say you last communicated with b6 b7c b6 b7c ? well, that day we communicated, I communicated k2 with k2 him a lot. That day I kept texting him because I was freaking out. That was Thursday? The 26th, 27th. And then you guys have not communicated since? No. , b6 b7c k2 , b6 b7c k2 AUSTAL USA 40. On 17 April 2012, b6 b7c k2 was re-interviewed by telephone to determine the veracity of b6 assertion that he b7c directed her to develop a personal relationship with b6 b7c k2 : k2 Q: A: Q: A: Q: A: Q: A: Would there be any reason someone would suggest you asked or directed b6 b7c k2 to get close to b6 b7c b6 b7c ? Absolutely not. k2 k2 Did you ask or directb6 to go out with b6 b7c b7c b6 b7c ? No. k2 k2 k2 Did you ask or direct b6 b7c k2 to have photos of herself with b6 b7c k2 ? No. Did you threaten the job prospect of b6 b7c k2 , b6 b7c k2 , b6 b7c k2 , or any other b6 b7c k2 of b6 b7c k2 that worked or are currently b6 b7c k2 working for AUSTAL? No. Subject’s Testimony b6 b7c k2 for b6 b7c k2 Littoral Combat Ship Program (PMS 501) 41. On 21 March 2012, NAVSEAINSGEN interviewed NAVSEA HQ, Room 1W-4000. b6 b7c k2 ,b6 b7c k2 at b6 b7c k2 , b6 b7c k2 FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 37 was also present. b6 b7c k2 b6 b7c k2 testimony follows: Q: A: Can you please describe your relationship with b6 to us? b7c b6 b7c Before we start, I’d just like to make a statement. k2 k2 I made a very bad error in judgment in allowing b6 to spend the night in my room. It was done b7c b6 b7c solely out of the intention for her not to drivek2 k2 drunk. Nothing happened between the two of us. I understand that I’ve disappointed a lot of people, my family, my friends, my command, (b) , (6), no other, you secretary of staff. I left them with (b)(7) know, option but to relieve me of my(c)command, and for that, I’m truly sorry. So as far as a relationship with b6 b7c k2 , it was purely a -- somewhat of a friendship relationship. She was the b6 tob6 b7c k2 , who was the b6 down at the company.b7 She had helped me on previous b7c times to get a hotel croom down there. k2 k2 42. b6 b7c k2 describes the circumstances that led to his going to dinner with b6 b7c k2 on Tuesday, 24 January 2012, and her spending the night in his hotel room. Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: …you said that she had gone, you know, above and beyond to make sure you had a hotel room -arrangements for your -No. Well, she tried to. She tried? She couldn’t find anything for me. And you know, kind of, you know, as a thank you to her, you took her out to dinner? Mm-hmm. Is that accurate? Yes. Did you tell anyone, either, you know, from the government or from the company that you were doing this? That I was taking her to dinner? Yes. No. …When you said that she spent the night in your room, can you tell me when that was? That was on the Tuesday evening of that week in January. I would need the actual date, to look at the calendar to find out what that was. Would it be on or about 24 January? That would have been a Tuesday, the 24th of January. Yes. …Who initiated that dinner? You? I did. I told her -- I told her that I’d like to offer to take her to dinner as a thank you for, you know for her trying to find a room for me downtown, FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 38 Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: since I was now staying -- had to stay on the other side of the bay. And so I figured we would just go. There are a lot of restaurants nearby the -- nearby the hotel, and just go grab something to eat. So where did you go? Went to a place somewhere down, you know, on the beach. She suggested it. She said, “Hey, you know, I’ve got -- there is this place that’s got a great band that I know of down here, being local. You know, why don’t we go, and you know, listen to the band and have dinner there?” I said, “Okay.” Did you drive or did she -I drove. Do you remember how far the -- the place was? Half an hour, I mean half an hour or so, 40 minutes maybe. It’s down towards -- because, you know, we had to go on the 90 and then down onto the beach road. I don’t -- you know, I’m not sure what that was, but it’s a half hour, 40 minute drive down there. Do you remember the name of the restaurant? Something like Johnny’s Little Shore, or it had some surfer kind of name to it, or something like that. Could it be Joey’s North Shore? That could be. I -- yeah, that could be. …Did you pick her up? No, she drove over, parked her car at the hotel…I went down to my car, we got in the car, and drove from there. It was probably 7:00, sometime between 7:00 and 8:00 at night. I don’t recall an exact time, but somewhere around that time. …you drove your rental car to Joey’s? Yes…I -- I don’t know what it was, how far it was. But it took you between 30-40 minutes to get there? Yeah, about that, yeah. So you went to dinner and then what happened? What happened at dinner? Oh, she basically listened to the band. I didn’t think it was all that good. I had -- I had a cup of gumbo and a beer, and she had a very large meal, and you know, quite a few beers. And at one point, I finally said, “b6 (phonetic), we need to get back. You know, it’s getting late,” and we left and went b7c back. What time wouldk2you say that was? Hmm, 10:30? I don’t know, 10:30, somewhere around there. What happened after you got back to the hotel? We go back to the hotel, and I said to her -- I said, “You need to find a place to sleep tonight, because -- you know, you need to find a -get a room here, because you know, you’re with -you’re too drunk. You know, you’re not going to drive.” She said -- so she attempted to go to the front desk, found that she didn’t have any -- they didn’t have any rooms there. FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 39 Q: A: Did you go in with her, or did she go to the front desk alone? She went to the front desk by herself. I sat in the little lounge, kitchen, breakfast area. She came back and she said, “They don’t have any rooms.” I said, “Well, then you need to get a cab.” She said, “Well, I don’t have any cash for the cab and I don’t have any money.” And at that point, I didn’t have -- I didn’t have any cash on me either. And again, this is where my huge error in judgment came, and I said, “I’ve got an extra bed up there. You’re more than welcome to sleep in there, but nothing’s going to happen.” You know, and again, so I just didn’t want her to drive home drunk.2 Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: 2 What was the error in judgment? Letting her sleep in my room, letting another female that wasn’t my wife, you know -Letting another female sleep in your room that wasn’t your wife? Yeah. Did you have phone numbers for anybody at the company? Do I? No… That I could have called? Right. No. You don’t have the president’s phone number? Well, I -As a b6 b7c k2 , you don’t have -I have his cell phone, but I wasn’t going to call him at 10:30 at night and say his EA was drunk, you know, “You need to do something with her.” You know, could I -- could I have found a way to get her to -- back to her house? Yeah, I could have. And again, that’s, you know, where I said I screwed up, and I should never have let that happen. I should have found a way to get her back, as opposed to letting her sleep in my room. You mentioned that you’re married. Mm-hmm. Did you tell your wife the next day that you had someone spend the night in your room? I told her on Thursday of that week. I didn’t tell her the next day. I mean, I -- put it this way. If I -- I don’t mean it this way to -- but if I hadn’t been caught, and nothing came of this, you know, I didn’t do anything with b6 b7c k2 -- literally, she just slept -- I probably would have told her when I got home, because I wouldn’t -- that wouldn’t have been a phone call, or something I would have wanted to tell her over the phone. Fairfield Inn and Suites by Marriott receipt for dates 23-26 January 2012 indicating Room Type as DBDB (two double beds). FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 40 43. b6 b7c k2 describes his first encounter with b6 b7c k2 on Friday, 13 January 2012, after a social event, b6 b7c k2 accompanied a large group of people including b6 b7c k2 , to two bars and later a smaller group back to the lounge of his hotel where eventually he and b6 b7c k2 shared a drink alone. A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: -- that day? I had spent time with her at the social event…, which was a couple weeks earlier. But that was -- that was at -- I had -- I had gone out. We had a -- I had dinner. I had gone across the street after dinner to a local pub…She was there. Just the two of you or -No, there was a huge crowd of people. But she was there, and you know, we had a few drinks that evening, before the next day’s actual official events. Let’s back up to the evening of the christening dinner. You’re at the christening dinner. Mm-hmm. And you wind up across the street. Did you walk across the street by yourself? By myself. Who did you meet up with at the -No one. There was -- there were probably 20 to 30 people from the group that was down there attending the christening, folks from General Dynamics, folks from OSDL, folks from the Navy, crew of the ship, and I don’t know. There was lots of people there. Did you talk to b6 b7c k2 at all at this -- do you - what’s the name of the place that you were at? That was Veets. Veets? Mm-hmm. Did you talk to b6 b7c k2 at all at that point? Yes, during the evening, at some point, towards the end of the evening, we -- a bunch -- it was kind of getting dead there, so a bunch of us walked to another establishment a little bit further down the street. I don’t actually remember what the name of it. It was some sort of a piano bar. How long did you stay at the piano bar? I don’t know; maybe an hour, hour and a half. So it was probably six of us in a group who stayed about an hour and a half or so, and then walked back to the hotel. How many people walked back to the hotel? All of us. All six? The five or six that were there, yes. Would that include b6 b7c k2 ? Yes, she was with the group that walked back. What happened after you got back to the hotel? Sat down in the lounge, had a beer, and then went to bed. You sat down in the lounge? Yeah. FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 41 Q: A: Q: A: Q: A: Q: A: Q: A: With the group, or with just b6 b7c k2 ? At first it was the group. They left. She was there. She finished her beer. I finished my beer and I went up to my room. When did you next communicate with b6 b7c k2 ? Probably the next morning at the sponsor’s breakfast that they have on the morning prior to the christening. Okay and then, I believe you left to come back to D.C. after that? Correct. The very next day? That day. That evening? That Saturday evening, yes. 44. b6 b7c k2 relates the events that occurred during the evening of Wednesday, 25 January 2012 where he had dinner with PEO LCS program personnel and later met b6 b7c k2 in his hotel room for drinks. Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q A: Q: A: Q: The evening of the 25th, can you tell me what you did that evening? The 25th? Right, that’s Wednesday, after you went out with b6 b6 b7c , the Tuesday night -- after. b7c Wednesday? So that would be on Wednesday evening? k2 k2 Right. Wednesday evening I went to dinner with my b6 b7c and his -- and b6 b7c k2 , and a few of the k2 other folks from the program office. And what are their names? . Dennis was with us. b6 b6 b7c k2 , b6 b7c k2 (phonetic)…And b6 b7c k2 b6 b7c k2 (phonetic). b7c I’m trying to think if there was anybody else at the k2 table with us. I think that was everybody. What time would you say you guys went out? About the same, about 7:00-7:30. Did you go out as a group, or did you meet them somewhere? Let’s see. I went with them. Myb6 b7c , b6 b7c k2 and I drove there together, and then the rest of them k2 showed up, because we were all kind of spread out in very different hotels around the area. Did you drive that night? I think I may have driven over there. I had -- yeah, I can’t remember. Okay, so you probably went and picked up b6 b6 b7c at his hotel? b7ck2 He was staying at the same hotel as me. …Do you recall where you went that night?k2 We went to some wings place in the local shopping center nearby, nearby where the hotels were, some sort of a sports bar or -Do you recall how long you stayed there? FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 42 A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: 45. b6 b7c k2 Q: A: Q: A Hour and a half maybe…7:30, 8:00 -- I mean, 8:309:00ish, maybe. …Did you go anywhere after that? I didn’t. I went back to the hotel. b6 b7c k2 tried to call me to get me to come downtown. And she -- she ended up coming back to the hotel there. What time would you say you got back to the hotel? I would say it’s maybe around 9:00 or so. That’s what I can recall. …Did she say where she was when she called you? Yeah, she said she was downtown at Veets and wanted me to drive all the way downtown. I told her I wasn’t planning on coming down there. what happened after that -I just stayed --- after you told her no? I just stayed at the room, you know. And she sent me a text saying, “I’m probably going to come by. You know, maybe we can have a couple drinks,” and you know, that evening she came by. You know, I had a couple beers with her, and then she left, and I didn’t see her again. So you went to your room, and she texted you to say that she was going to stop by. When she stopped by, did she come up to your room? She came up to my room, yeah, because I had a couple beers in the room. And I had a beer with her, and she said, “We ought to -- we really ought to go downtown.” I’m like, “I’m not going to do that. I’ve got a long day tomorrow. I’m going -- you know, I’m going to sleep. You need to leave,” and so, she left. Was she intoxicated at this time? Do you know? I don’t think she had -- you know, she wasn’t like she was the previous night. What time did she leave your room? Do you recall? 10:00-10:30, somewhere around there. Did you walk down with her? No. No, I don’t believe I did. What did you do after that? I got changed, and got into bed, and had the TV on, relaxing. You didn’t do any work on your computer or anything? I don’t think so. I don’t know. I don’t recall. During the time between when you returned to your hotel and when b6 b7c k2 left, were you texting anyone during this time period? I may have been -- I may have texted her. Anyone else? I don’t know. characterizes his relationship withb6 b7c k2 : How did you -- how do you characterize the relationship you had with b6 b7c k2 ? How did you -How do I characterize it? Yeah. Just I would call her an acquaintance. FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 43 Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: An acquaintance? Yeah. Now, why would she send you Mardi Gras photos? I have no idea. I was kind of taken back as to why I was getting the level of information from her that -like I said, some of the things, both texting -- and the texting was pretty over the top. When you say “over the top”, can you -- do you remember, you know, what these texts actually said? You know, very suggestive, sexual connotations, and I can’t -- I don’t know exactly. I can’t, at this point, remember exactly what they were, but they had a -- you know, a very -- you know, a very sexual connotation to them. And do you still have these text messages? No… …You said that b6 b7c k2 was trying to lead you on. Well, that’s what I felt like. And what gave you that impression? What was it about her behavior that gave you that impression? I mean it -- you know, she was always, you know, initiating, you know, something. You know, she would send something else and it was just, you know, constant repeated, you know, texting, you know, on her part. 46. b6 b7c k2 gives his perspective on the reasons he was relieved as b6 b7c k2 . Q: A: Q: A: …Is there any regulation that prohibits what you said occurred on that evening? I’m not sure I can quote a regulation, but it -- in the position I was in, you know, it’s a perception thing, right? It’s the confidence of my -- of my bosses, of whether or not, you know, given what I do on my personal time, whether or not that carries over into my professional time. Okay? So I had an error in judgment, which in their mind was sufficient to warrant, you know, where we’re going today with this. …What about in your mind? Oh, absolutely. Analysis 47. Both b6 b7c k2 (ab6 b7c k2 ) and b6 b7c k2 admitted they developed a personal relationship that went beyond professional boundaries. By their admission, they met for a private dinner; b6 b7c k2 spent a night in b6 b7c k2 hotel room when he was on official Government travel; they shared drinks in b6 b7c k2 hotel room on another occasion, and they exchanged a large volume of text messages (579), some of which were sexually explicit. A witness who was privy to several of text messages stated they discussed his desire for b6 b7c k2 FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 44 sexual intercourse withb6 b7c k2 and also spoke in a disparaging manner about an AUSTAL executive. 48. b6 b7c k2 , b6 b7c k2 stated he was concerned b6 b7c k2 could be passing b6 b7c k2 sensitive AUSTAL information. This concern was shared by other AUSTAL employees during interviews with NAVSEAINSGEN. b6 b7c k2 also stated that he reported the relationship between b6 b7c k2 and (b)(6), (b)(7)(c) to because he wanted to avoid the b6 b7c k2 appearance of impropriety on the part of AUSTAL USA, an appearance that could affect future contracts with the Government. When this concern is combined with the nature of the (b)(6), (b)(7)(c) (b)(6), (b)(7)(c) relationship developed between and , a reasonable person can conclude his actions created the appearance that he was violating ethical standards as prohibited by the Joint Ethics Regulation, 5 CFR 2635.101. 49. Navy officials, especially senior officers are expected to maintain high professional standards that are above reproach. (b)(6), (b)(7)(c) , PEO LCS, specifically reminded his staff in July 2011 of this standard when he assumed Program Executive duties. In a memorandum he states, “It is imperative that all members of the PEO LCS Organization conduct themselves properly at all times. Avoid even the perception of impropriety regardless of where you are or what you may be doing.” b6 b7c k2 actions of engaging in an unprofessional relationship with a highly placed employee within the company that provides major support to his program seriously compromised his standing as a b6 b7c k2 and b6 b7c k2 . b6 b7c k2 failure to keep his b6 b7c k2 relationships with the employee above reproach is not conduct expected of a senior naval officer and is in violation of Article 133 of the UCMJ, "Conduct Unbecoming an Officer and a Gentleman." 50. While b6 b7c k2 has alleged that she was directed by of AUSTAL USA, to develop and document a b6 b7c , b6 b7c k2 k2 personal relationship with b6 b7c k2 in order to gain an advantage over him, this investigation did not uncover any evidence to support this allegation. b6 b7c k2 could not provide any written record of b6 b7c k2 direction to her stated that all direction to develop this relationship was verbal. When confronted directly about this allegation,b6 b7c b6 b7c denied being involved in any such conduct. Further, b6 b7c k2 and even k2 k2 FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 45 if b6 b7c k2 allegation was accepted as truthful and accurate, it would not exonerate b6 b7c k2 misconduct. Conclusion 51. The allegation is SUBSTANTIATED. Recommendation(s) 52. Recommendation #1: That NAVSEA take appropriate corrective action with regard to b6 b7c k2 violation of the UCMJ, Article 133. ***** 53. Allegation #2: That b6 b7c k2 , b6 b7c k2 for Littoral Combat Ship Program (PMS 501), b6 b7c k2 (b)(6), (b)(7)(c) ), Washington Navy Yard, DC, between September 2010 and February 2012, misused his government provided wireless communication device (b6 b7c k2 ) by transmitting nearly 38,000 unofficial text messages to b6 b7c k2 and b6 b7c k2 , in violation of the Uniform Code of Military Justice, Article 92, “Failure to Obey Order or Regulation,” 5 CFR 2635.704, Use of Government Property, and NAVSEAINST 2100.2, Management of Telecommunications Systems and Services dated 24 Jun 08. Substantiated Applicable Standard 54. Uniform Code of Military Justice, Article 92, “Failure to Obey Order or Regulation” states: Any person subject to this chapter who-(1) violates or fails to obey any lawful general order or regulation; (2) having knowledge of any other lawful order issued by any member of the armed forces, which it is his duty to obey, fails to obey the order; or (3) is derelict in the performance of his duties; shall be punished as a court-martial may direct. 55. 5 CFR 2635.704, “Use of Government Property” states: FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 46 An employee has a duty to protect and conserve Government property and shall not use such property, or allow its use, for other than authorized purposes. (1) Government property includes any form of real or personal property in which the Government has an ownership, leasehold, or other property interest as well as any right or other intangible interest that is purchased with Government funds, including the services of contractor personnel. The term includes office supplies, telephone and other telecommunications equipment and services, the Government mails, automated data processing capabilities, printing and reproduction facilities, Government records, and Government vehicles. (2) Authorized purposes are those purposes for which Government property is made available to members of the public or those purposes authorized in accordance with law or regulation. 56. DoD 5500.7R, Section 2-301 “Joint Ethics Regulations” states: 2-301. Use of Federal Government Resources. a. Communication Systems. See GSA regulation 41 C.F.R. Subpart 201-21.6 (reference (h)) on use of Federal Government telephone systems. Federal Government communication systems and equipment (including Government owned telephones, facsimile machines, electronic mail, internet systems, and commercial systems when use is paid for by the Federal Government) shall be for official use and authorized purposes only. (1) Official use includes emergency communications and communications that the DoD Component determines are necessary in the interest of the Federal Government. Official use may include, when approved by theater commanders in the interest of morale and welfare, communications by military members and other DoD employees who are deployed for extended periods away from home on official DoD business. (2) Authorized purposes include brief communications made by DoD employees while they are traveling on Government business to notify family members of official transportation or schedule changes. They also include personal communications from the DoD employee's usual work place that are most reasonably made while at the work place (such as checking in with spouse or minor children; scheduling doctor and auto or home repair appointments; brief internet searches; e-mailing directions to visiting relatives) when the Agency Designee permits categories of communications, determining that such communications: (a) Do not adversely affect the performance of official duties by the DoD employee or the DoD employee's organization; (b) Are of reasonable duration and frequency, and whenever possible, made during the DoD employee's personal time such as after duty hours or lunch periods… 57. NAVSEAINST 2100.2, “Management of Telecommunications Systems and Services” dtd 24 Jun 08 states: Telecommunication equipment and services include Blackberrys, cellular phones, air cards, satellite phones… FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 47 a. NAVSEA telecommunications systems shall be used for official use and authorized purposes only. b. NAVSEA telecommunications equipment shall be used only for transmitting unclassified, official Government information… (4) Examples of permissible types of personal calls include: (a) (b) (c) (d) Checking on a family member. Making or canceling personal appointments. Checking on the status of home or auto repairs. Notifying family members of overtime work requirements or other changes in schedules. (5) Reimbursing the Government for unauthorized calls does not exempt violators from disciplinary action… e. Any use that would adversely reflect on DoD or that is incompatible with public service (such as, threatening or harassing phone calls or electronic messages; accessing, storing, processing, displaying, or distributing offensive, obscene, sexually explicit or pornographic material or hate literature; unauthorized fundraising, gambling, or similar activities; partisan political activity, political or religious lobbying or advocacy), or any other use that violates statute or is against regulation is not authorized. Findings of Fact Complainant’s Testimony b6 b7c k2 , b6 b7c k2 and b6 b7c k2 AUSTAL USA , 58. On 1 March 2012, NAVSEAINSGEN interviewed b6 b7c k2 at AUSTAL USA in Mobile, Alabama regarding the nature of communications betweenb6 b7c k2 and b6 b7c k2 . Q: A: Q: A: So in terms of telephonic communication would there be any reason for the two to be communicating directly throughout the business day? Yeah, there would be throughout the business day. …there's probably the occasion where it's probably easier for him just to call direct to me. My phone rolls to her desk if I don't answer. She answers the phone and, "Hey,b6 this is b6 b7c k2 . I'm trying to schedule a meeting to see b6 I'll be in town b7c Tuesday," or something like that. That could be b7c within the realmk2of the possible, you know, where they would have that. Or, "Ik2know b6 s not in town." He calls and gets her and he wants to set up b7c a meeting or coordinate calendars. There could be those instances, sure… It wouldn'tk2be the norm necessarily, though. Okay, so what were b6 b7c k2 business hours? Well, 8:00 to 5:00. …but she worked a lot of extra FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 48 Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: time. I mean, she put in a -- b6 was a great employee. She did a great job. …in the business b7c sense she's missed, …So I'm really not happy this k2 happened. So would you be surprised if I told you there were communications between b6 b7c k2 andb6 b7c k2 let's say at 6:00 a.m.? Well, not now knowing what I know… Before knowing what I know, yeah, I would be surprised at that. Yeah. So in a normal environment would you be surprised if there were communications betweenb6 b7c k2 and b6 at 9:00 p.m.? b6 b7c b7c Yes. k2 k2 So in your estimation would there be any reason for the two of them to be communicating for business at those times? No. You know, we all -- here's the thing. We all want to give people the benefit of the doubt… and to be absolute for a question like that would be insincere. Would I think that it would be the 99th percentile that it would be unusual for them to talk at 9:00 at night? Yes. You know, absolutely. On a regular basis, 100 percent, you know. Is there the possibility that at 9:00 at night b6 had to get hold of me and for some reason he was able, you b7c know, b6 was at her desk and he's calling to leave k2 me a voicemail that rolls or something, she picks it b7c up? There's that 1 percent chance that that could be k2 credible. So it's hard for me to say absolutely, but I can say with a high degree of confidence it would be unusual. Now, in terms of this communication, if they were to be communicating before or after normal business hours would that happen with b6 b7c k2 through a company device or how would that occur? Yeah. You know, I'm certainly aware of maybe a hole in my process withb6 in the sense that she always had extra cell phones. She used her personal cell as b7c much as she used her company-issued phone under the k2 premise that she didn't get as good reception or something with her company-issued cell phone. So a lot of conversation, and even between – in my contacts on my cell phone I have several numbers for b6 . I'm not even sure which one is her companyissued cell phone number, you know. And again, b7c that's a management weakness for me. I think that I k2 probably should have said and required that she and I and all business be conducted on a company-issued cell phone, and I'm going to start paying attention to that in the organization. That's your management and that's certainly reasonable. So she had more than one cell. Can you provide us with her company-provided cell phone, the number? …No problem there. Sure. Well, actually you said you had more than one or two FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 49 A: Q: A: Q: A: Q: A: Q: A: Q: A: numbers for her? Yeah. Could we get those numbers, any of the numbers? Yeah. It's in my contacts. I'll give them to you. And if she had reason to be working before the normal working hours how would she account for those hours? Is she on a hourly -She badges in and out. No, no, I mean if she was conducting business, official business over the phone. Well, she was salary. Salary? Yeah. So she wouldn't put in for the extra hours or anything? No. No. Although she did badge in and clock in and clock out. She worked regularly into the evenings. I mean, she did work a lot. She put a lot of extra effort. She put in a good job, put in a good effort. Witnesses’ Testimony b6 b7c k2 , b6 b7c k2 AUSTAL USA 59. On 1 March 2012, NAVSEAINSGEN interviewed b6 b7c k2 regarding the nature of communications between b6 b7c k2 . b6 b7c k2 stated the following: b6 b7c k2 , and She said he had been texting her relentlessly. I was able to see some text messages from b6 b7c k2 , she didn’t have a picture associated with his name but his name was attached to the text messages. She was trying to show me how much he was texting her. I don’t know if I can tell you word for word what the text messages said but there were two that were pretty clear. Some of the texts were a little risqué. One message said, “I want to be inside you.” I looked at her and I said, I cannot believe that is a text message on your phone. I don’t know the timeframe of the text message. I quit looking after I saw, “I want to be inside of you” because that was kind of embarrassing. The other text message was talking about one of our executives and it looked like it was from b6 b7c k2 and it was an on-going conversation about executives and things at work. I was more intrigued that the texts said one of our executives b6 b7c k2 was an idiot. Whileb6 was scrolling through her phone and showing me her text messages b6 called. I know he b7c called because she was like “there he is!” and she b7c said,k2 “hey there, we were just talking about you.” After speaking to himk2for about five minutes at the FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 50 bar, she walked to the other side of the bar and talked to him for awhile. I don’t remember what they were discussing while she was on the phone with him at the bar, only that they were excited about him coming down and her spending some time with him. called her on 16 January, it was b6 said b6 b7c k2 Martin Luther King day andb6 and I were out at the b7c bar and dinner on the 17th. She said he called her b7c k2 and told her he was lying in bed naked all day k2 him, if I was there you thinking about her. She told wouldn’t be lying there. b6 b7c k2 60. b6 b7c k2 . b6 b7c k2 A: Q: A: Q: A: Q: A: Q: A: Q: A: , b6 b7c k2 and b6 b7c k2 for theb6 b7c k2 , AUSTAL USA describes the text messages she exchanged with wanted me to keep in contact. So I honestly b6 texted the living daylights, and e-mails. I sent b7c pictures of myself. Not nasty. I don't do that. I k2 mean, I'm going to step low but I'm not going to step that low. I mean, it's just having fun kind of pictures. I sent pictures and -With text or e-mails? Both. …The next morning you go to work? Yes, ma'am. Did he text you the next morning? Yes…I think I may have texted him. I don't know who texted who first. I'm not clear. But he, the initial text was because I was so rattled during that brief. And so he participated in the flirtatious nature of your relationship through the text messaging? Yes. What were some of the things that he would say to you on the text message? Oh, he doesn't go in any detail. Like I am like the detail person or whatever and he just would, "Ha, ha, ha, LOL," or, "Yeah, me too," or, "Back at you," or, "Ditto." Like in agreement with what I was saying. He never really like at length had anything risqué. He would respond. It wasn't like he wouldn't, it wasn't like he would not acknowledge that I just said or that he was, you know, leaving me to linger and wonder. But he didn't -- and I'm trying to think back because I don't want to tell you a lie…I was insanely graphic. I'm not -- I'm going to tell you, he wasn't. He wasn't. But he didn't discourage it. He didn't encourage it but he didn't discourage it. His responses would be like, "Ditto," or, "Back at you," or, "Same on this end." You know, what, it wasn't like, truly a lot of our text messages was FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 51 like, "What kind of day are you having, a crappy day, a good day?" That kind of stuff. , b6 b7c k2 , Operations HQ IT Infrastructure and Communications Support b6 b7c k2 61. b6 b7c k2 provides expert opinion on the usage of government issued wireless devices. b6 b7c k2 b6 b7c k2 b6 b7c k2 b6 b7c k2 b6 b7c k2 b6 b7c k2 FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 52 Subject’s Testimony for b6 b7c k2 Littoral Combat Ship Program (PMS 501) 62.b describes how he used his Blackberry to 6 communicate with b6 b7c k2 . b 7 c k 2 Q: A: Q: A: Q: A: Did you communicate with b6 b7c k2 at all after you left D.C.? Yes. And how did you -Yeah, I was -- she had been sending -- she sent me a few emails, and some texts, and things that were, I don’t know, I guess pretty provocative. When you say a few emails, can you tell me -- can you guess at how many emails? Half a dozen. She asked me -- she -- that weekend -I don’t even know. The following weekend she was -she sent me a few emails saying that she was going to a couple of Mardi Gras parades, etc. She sent her and friends a couple of pictures saying, “Hey, we’re having a great time.” I know I responded back to her and said, “Hey, it looks like you guys are having a real good time,” you know, a bunch of drunk women. Q: A: Q: A: Q: A: Q: A: How many times would you say you responded to her? I don’t know, I mean 20 to 30 times, somewhere in that neighborhood. Within that week or -Within the entire, you know, period of time. I can’t really answer. I don’t know. It was -- there was a number of them. So you think you responded to her 20 to 30 times from the time you left D.C., which was the evening of the 14th… Until I got back down there at the end of January, I guess. Somewhere in that neighborhood. I don’t know. Besides that one that you said, “You guys look like you’re having a good time,” would you say your other text messages to her were on a professional level? No, again, I’ll admit that. She came on very strong, almost to the point where, you know, she wanted me to engage in something. Why I did it -- you know, I responded unprofessionally back to her, but nothing - you know, nothing was meant by it. It was, you know, purely a flirtatious type of, you know, texts. But in my you know, It was -trying to mind, after the fact, looking back at this, like I said, I know I made a huge mistake. it’s quite obvious to me that she was lead me on, to take it to another level. FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 53 Q: A: Q: A: And so you never told her specifically, “Hey, stop,” you know, “This is unprofessional”? No. No, I didn’t. …And who initiated the text exchanges? Who started those? Can you recall? I believe she did. I mean I may have sent something to her just saying, “Hey, how are you doing?” or something like that. But -- and then she would go down to the next -- you know, the next level of, you know, with a sexual connotation… 63. The documentation referenced during the interview with b6 b7c b6 b7c k2 is inserted below. k2 b6 b7c k2 b6 b7c k2 b6 b7c k2 b6 b7c k2 b6 b6b7 c b7 b6 k2 c b7 b6 k2 c b7c k2 k2 b6 b7c k2 b6 b7c k2 b6 b7c k2 b6 b7c k2 FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 54 64. b6 b7c k2 agreement: Q: A: Q: A: Q: A: Q: A: Q: A: discusses the terms of his Blackberry User Can you tell me if this is your signature on this user agreement? Yes, it is. Okay and can you tell me what it says about use of the Blackberry, when it should be used? So it’s probably somewhere in this NAVSEA instruction. Okay. Would you agree that the Blackberry is for official use? Yes, I would. Okay and would you characterize your text messages to as unofficial use? b6 b7c k2 Yes. Okay. Do you have your Blackberry with you? Yes. 65. b6 b7c k2 b6 b7c k2 Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: on characterization of text messages and texting : Do you have your Blackberry with you? Yes. Can you check and see whose phone number is b6 b7c k2 b6 ? Yeah, I’m trying to think who has 202 numbers. b7c While you’re looking, let me go back to your texting k2 with b6 b7c k2 . Would you agree that you texted her outside of normal working hours, normal working hours being 8:00 to 5:00? Obviously, yes, I did. If I gave you a name, could you look it up? Sure. Okay. b6 . That’s probably -- that probably is who it is. I b7c know I’ve got her in -- her email in here, but I k2 her phone number. Here. Let me see if don’t have it’s under -- yeah, it could be. That sounds -- that -- you know, I’ve texted her before. How often would you say that you text b6 b7c ? Eh, quite a bit during the day. She’s probably my k2 best friend. I was just going to ask you, who is b6 b7c k2 to you? Yeah, she’s probably -- I mean, she’s probably my best friend…I’ve known her for 15 -- almost 20 years now. Would you say you text her on a daily basis? Yes. Outside of normal business hours? Sure. During business hours? Yep. Who would you say you text more often, your wife or b6 b7c k2 ? I probably text my wife more often, but I use my personal phone, you know, for texting my family. FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 55 Q: A: Q: A: Q: A: Q: A: Q: A: And why wouldn’t you use your personal phone to text b6 b7c k2 ? I just -- I don’t know why. That’s -- but that’s it. I use my personal phone for my family, and you know, basically my work phone for just about everybody else, because I don’t always carry my phone, because it has a camera, you know, in the building and stuff. And, you know, lots of times I don’t take it on the shipyard, so – When you text b6 b7c k2 at night, do you use your personal phone? No, I didn’t have the number in there. I’m sorry? Probably just because I didn’t have her number in that phone. You don’t have her -I probably didn’t have her number in my personal phone, so it was probably just easy -- just like I said, if I don’t have any of the numbers, then I just go by the name. But she’s your best friend and has been for 20 years. You don’t have her listed in your personal phone? I mean, it’s just I -- okay. I don’t know why I used that phone. It’s just -- it was -- it’s easier. When I’m on -- at home, I’m on the phone -- I’m on that Blackberry all the time, dealing with work emails in the evening, etc. And amongst that time, you know, I may use it to text other people as well. You know, so I’m working and I get emails in, texts in, whatever. You know, so -you know, sometimes it’s hard to -- you know, while I’m working. I’m sent a personal text. Okay, I guess I should have put that phone down, picked up my other phone, sent another -- you know, sent a text out of there, then picked up my Blackberry, and continued working in the evening on email work and other things that I was doing. Q: A: Q: A: Q: A: Q: You know, like I said, you’re right. I made an error there. I shouldn’t have been using that Blackberry to be doing that stuff. …would you say you use your government Blackberry for -- more for personal or for government business? Government. So would it surprise you, you know, if I said that in examination of your text log suggests that you use it more for personal? Yeah, I would find that very surprising. You know, from a text standpoint, I mean I’ve used -- you know, if you want to split the time between the official emails and that kind of stuff, and texts, I’d find it hard to believe, but okay. Okay, so let’s just talk about text messages then. Okay. Do you use the text feature more to -- for personal reasons or government reasons? FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 56 A: Q: A: Q: A: I would probably say more for personal. Okay. Would you say since you signed this agreement…September 2010 to February 2012 that 30,000 text messages to one individual is excessive? Yeah. In your view, is that an appropriate use of that government device? No, sir. I think I’ve already answered that. I told you that. 66. b6 b7c k2 defends his naval service despite his recent lapse in judgment. Q: A: Q: A: Q: A: And what would we learn from them? That -- I believe that, you know, it would -- okay, I had an error in judgment on the misuse of the Blackberry, and a perception that I had a relationship or something with b6 b7c k2 . But I think you’ll find, based upon my service to the government here that, you know, I worked my rear end off for 26 years, trying to do a great job for the Navy, and trying to build ships. And, you know, agreed, okay, so I had an error. I had an error in judgment. I misused the Blackberry. There is a perception there. You know, and I’m going to -Which perception are we talking about? Well, the one that you said there, whatever it was on the charge sheet. The appearance of impropriety? The appearance of impropriety. And, you know, I -- I can’t -- you know, I can’t defend what I did, you know. And I’m going to -- you know, I’m not going to get another good job like I had here, so you know, I’m intending to retire once this is all said and done. 67. On 10 April 2012, NAVSEAINSGEN re-interviewed b6 b7c k2 . b6 b7c k2 was reminded of b6 b7c k2 at NAVSEA HQ,b6 b7c k2 the role of the IG and that he was still under oath. b6 b7c k2 , attorney of record for b6 b7c k2 was also b6 b7c , b6 b7c k2 k2 present. b6 b7c k2 testimony follows: Q: A: First, during the interview you mentioned that b6 b6 b7c was sending you text messages and that she b7c basically initiated the text messages with you. k2 k2 …according to the text message log, you actually initiated most of the texting. For example, after the 13th of January, you initiated a text message at 0913 tob6 b7c k2 . On the 17th, you initiated a text message at 0538, on the 18th at 0518, on the 20th at 0550, and so on for the rest of the weeks. Can you explain? When I initiated all those, all I basically said was ‘hello’, ‘good morning’ or something to that effect. Uh, when I talked about initiating the texts I was FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 57 Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: really going more into the illicit responses that came from there as far as initiating that. But you do acknowledge that you initiate all those texts first thing in the morning? If that’s what the records say I would have to agree with that. I don’t…you know. You also told (b)(6), (b)(7) that you had an error in judgment on I (c) think Thursday, the 26th of January, by allowing b6 to spend the night in your room on Tuesday, the 24th of January because she had b7c had too much to drink. You also said you went out to k2 dinner on Wednesday, the 25th of January with some coworkers and that b6 b7c k2 contacted you and you allowed her to come up to your room for drinks, but that you never went out with her that evening. I didn’t go out drinking. No. I’m just confused because there’s an eye witness that said that they saw you andb6 b7c k2 pull into the parking lot at exactly 10:35 pm that night, and saw the both of you get out of the car. And that would be Wednesday the… (Interrupted) Yeah, I don’t recall that. You don’t recall going out or anything? No. Because you did say in your interview that she did try to get you to go out. But you don’t recall going out with her? No I don’t. Did you have any conversations with anyone on Thursday the 26th of January besides (b)(6), (b)(7)(c) which you told to that person that b6 b7c k2 spent the night with you on Wednesday the 25th? Um…I had spoken to both my b6 b7c andb6 b7c k2 b6 b7c because they wantedk2to understand what was going on. Um, I had told them that…um, what had k2 happened that (b)(6), (b)(7) received a call saying (c) that, um the b6 b7c k2 of the company was bringing his b in for an improper relationship with me and that I had told (b)(6), (b)(7) that I had made an 6 (c) error in allowing her to stay in my room. Um, I b know, I don’t believe I told them what night it don’t was.7cUm, they may have assumed because I was telling themk2Thursday morning that it was the night before. But I don’t remember actually telling them that ‘Hey, she stayed with me on Wednesday night or she stayed with me on Tuesday night’. So they would be mistaken then if they said you told them that you that person spent the night with you on Wednesday night? Yes, they would be mistaken. You characterized your relationship with b6 b7c k2 as being more of an acquaintance than a friend. So can you explain why you would send a text message to someone that says ‘I want to be inside you’ to an acquaintance? (Pause) Uh…no, that’s not something I would send to an acquaintance. FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 58 Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Q: A: Do you remember sending a text message tob6 b7c k2 that said that? No, I don’t. Did you have sexual intercourse with b6 b7c k2 ? No, I did not. Did you have oral sex with b6 b7c k2 ? No, I did not. Did you ever kiss b6 b7c k2 ? No, I did not. You also said that you made an error in judgment when you misused your Blackberry. Ok. I just want the reader of this report to be able to understand and the reader, probably how you would (b)(6), (b)(7)(c) explain to him that you made an error in judgment in the misuse of the Blackberry, when back in July 2008, you were investigated for the exact same allegation texting to the exact same person,b6 ? I recognize that um…I would say at the time…I b7c didn’t…ok so…so I agree that I uh….violated the NAVSEA Instruction. But as I’ve k2 said before, I use my Blackberry constantly and I get people texting me here texting me there and…ok I didn’t draw the line saying I shouldn’t be on there cause somebody texted me and I’m doing email in the evening and whatever else. I’m sending texts back as well as emails and this and that. Um, I should of known better, I should of severed that. I should of you know told everybody only use it on the other…my personal phone. I didn’t do that. We’re not talking about everybody, we’re talking about you were specifically…(Interrupted) I understand that. I do. When was the last time you contacted b6 b7c k2 , either by text, email, phone…when was the very last time you spoke to her? Um, it would have been on that Thursday, whatever day that was, the 24th or whatever that Thursday was that this all broke. You haven’t… (Interrupted) I haven’t had any conversation with her since then. Any texting? No. Any emails? No. What about b6 ? When was the last time you contacted…you texted b6 ? b7c When was the last time I texted her? b7c k2 Right. Um, it’s been awhile. Um,k2I don’t know the exact date. You said that b6 had been your best friend for the past 15-20 years. Would your wife be b7c able to substantiate that? No, that wouldk2upset her very much. It would? Um hmm. FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 59 Q: A: So you and your wife don’t have any contact with b6 together, it’s just a personal b6 b7c b7c relationship that you have with b6 ? k2 k2 Correct. b7c k2 Documentary Evidence 68. During the course of this investigation, NAVSEAINSGEN obtained b6 b7c k2 signed Blackberry and CAC Reader User Agreement Form dated 22 September 2010. This agreement states, “This device is property of the U.S. Government. It is intended for official use and authorized purposes only and must be used in accordance with the guidelines set forth in NAVSEAINST 2100.2.” 69. During the course of this investigation, NAVSEAINSGEN obtained the records of b6 b7c k2 government provided Blackberry. These records show that between 14 and 27 January 2012, b6 b7c k2 exchanged 579 text messages with b6 b7c k2 b6 b7c k2 , averaging over 44 text messages per day, inclusive of weekends and the Martin Luther King Holiday. These text messages are depicted visually in the following chart to illustrate the frequency and times of day the text messages were exchanged: 4:48 AM Time and Date of Text Messages 12:00 AM 1/14/2012 1/15/2012 1/16/2012 1/17/2012 1/18/2012 1/19/2012 1/20/2012 1/21/2012 1/22/2012 1/23/2012 1/24/2012 1/25/2012 1/26/2012 1/27/2012 Time 7:12 PM 2:24 PM 9:36 AM 4:48 AM 12:00 AM 1/12/2012 1/14/2012 1/16/2012 1/18/2012 1/20/2012 1/22/2012 1/24/2012 1/26/2012 1/28/2012 FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 60 70. A sample of ATT invoices for b6 b7c k2 wireless device for the period between December 2011 and February 2012 were examined during this investigation to determine if the b6 b7c k2 excessive usage of the text feature incurred any additional charges to the government account. The invoice identified b6 b7c account as having the “Custom BlackBerry w/Unltd Text” b6 b7c k2 k2 feature; therefore no additional charges were incurred through the use of this feature. 71. In 2008,b6 b7c k2 was investigated by NAVSEAINSGEN under Case Number 2008-0044L for the misuse of official Government telecommunications equipment to engage in non-official, unauthorized communication with b6 b7c k2 , a b6 b7c k2 employee. While the previous investigation found this allegation to be unsubstantiated, a comprehensive review of b6 b7c k2 Blackberry usage during the present investigation revealed that between 22 September 2010 and 22 January 2012 b6 b7c k2 exchanged 37,364 text messages with b6 b7c k2 , averaging over 76 text messages per day, inclusive of weekends and holidays. Analysis 72. While being interviewed, b6 b7c k2 acknowledged that he had signed a Blackberry and CAC Reader User Agreement Form which stated his Blackberry was provided “for official use and authorized purposes only.” During the same interview, he characterized his use of his Blackberry to exchange text messages with both b6 b7c k2 and b6 b7c k2 was as an other than official use of the device. Further, the volume of text messagesb6 b7c k2 exchanged with both b6 b7c k2 and b6 b7c , and the times of day he exchanged these text messages, b6 b7c exceeded what could be construed as of reasonable duration ork2 k2 frequency, as authorized by DoD Ethics Regulations. 73. According to 5 CFR 2635.704, “Use of Government Property” includes “telephone and other telecommunication equipment and services” and automated data processing capabilities.” b6 b7c b6 b7c k2 characterized using his Blackberry to exchange text k2 messages with b6 b7c k2 andb6 b7c k2 as not being an official use of the device, in violation of 5 CFR 2635.704 which prohibits employees from using property for other than authorized purposes. FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 61 74. The Blackberry and CAC Reader User Agreement Form signed by on 22 September 2010 stated that the Blackberry “must b6 b7c k2 be used in accordance with the guidelines set forth in NAVSEAINST 2100.2. NAVSEAINST 2100.2 requires telecommunication equipment to be used for official use and authorized purposes to transmit official Government information. Though four categories of permissible types of personal calls are authorized in the instruction,b6 b7c k2 text messages with b6 b7c k2 and b6 b7c , even though his excessive use of the text feature incurred b6 b7c no additional charges to the government, do not fall into anyk2of k2 the four categories, nor do they fall within the spirit of these regulations. To the contrary, the fact that b6 b7c k2 used his government issued Blackberry to engage in an inappropriate relationship with b6 b7c k2 , further corroborates the misuse allegation. 75. When b6 b7c k2 signed the Blackberry and CAC Reader User Agreement Form he acknowledged the terms of usage of the device. Further, when he was investigated in 2008 for similar conduct, he was similarly informed of the restrictions regarding the use of his government issued Blackberry. Yet, by his own admission, he violated the terms of the User Agreement, and the ethical regulations which prohibit the misuse of government resources. In his testimony, b6 b7c k2 stated that his misuse of the resource was an “error” and “mistake.” Nonetheless, b6 b7c “error” and “mistake” in misusing his government issued b6 b7c k2 k2 Blackberry was a violation in the applicable orders contained in the governing instructions and agreement that he signed, thus making his actions a violation of the Uniform Code of Military Justice, Article 92, “Failure to Obey Order or Regulation.” Conclusion 76. The allegation is SUBSTANTIATED. Recommendation(s) 77. Recommendation #1: That NAVSEA take appropriate corrective action with regard to b6 b7c k2 inappropriate use of his Government issued Blackberry. FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 62 Other Matter(s) 78. During the preliminary inquiry, there were concerns that sensitive procurement information may have been compromised. reviewed contract changes involving AUSTAL, b6 b7c k2 USA for January 2012. No evidence obtained suggests b6 b7c k2 used his position during the course of his inappropriate relationship with b6 b7c k2 to influence contract decisions. During the course of this investigation, NAVSEAINSGEN obtained no evidence to that would indicate b6 b7c k2 violated the Procurement Integrity Act, 41 U.S.C. §423, implemented at FAR 3.104. FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE Any misuse or unauthorized disclosure may result in both civil and criminal penalties. 63