WASHINGTON (CNN) - Federal agents arrested a District of Columbia government official and a Washington-area businessman on conspiracy charges Thursday and searched the offices of the district's chief technology officer as part of a corruption probe.
Yusuf Acar, a contracting officer for Washington's city government, and Sushil Bansal, a former city employee, are accused of swindling the city out of several million dollars by inflating purchase orders and billing the city for work by non-existent employees of Bansal's companies. They made initial appearances in federal court on Thursday.
Both are charged with conspiracy to commit bribery and money laundering, while Acar faces separate charges of wire fraud and conflict of interest, according to court papers.
As part of the probe, agents raided the office of Washington's chief technology officer, the agency responsible for overseeing the city's telecommunications infrastructure. The raid came a week after the Obama administration named the office's former director, Vivek Kundra, as the White House chief information officer, but a law enforcement source with knowledge of the investigation told CNN that Kundra is not involved in the case.
The White House called the probe "a serious matter," but referred further questions to the Justice Department.
Updated: 6:22 p.m.
– CNN's Carol Cratty and Terry Frieden contributed to this report.