March 12th, 2009
06:22 PM ET
14 years ago

FBI searches Washington technology office

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.

Filed under: Obama administration
soundoff (180 Responses)
  1. Nice vetting

    Sushil Bansal and Yusuf Acar ? Working in the CTO? Overseeing DC's telecommunications infrastructure? My God, what kind of vetting process do they do in this city? Osama Bin Laden probably has microphones all over DC listening in to the CIA NSA FBI and Oval Office – all from the comfort of his furnished cave along Pakistan border.

    March 12, 2009 01:42 pm at 1:42 pm |
  2. Ruth

    Awesome! Just what we need another witch hunt. Maybe there will be an investigation into nothing and the GOP will pull out Ken Star. I love the 90's!!!!!

    March 12, 2009 01:43 pm at 1:43 pm |
  3. me

    Obama's man is not involved. Don't you feel as stupid as you actually are? Apparently, FAUX News had the "whole" story...I'm sure the've implicated Cookie Monster.

    March 12, 2009 01:45 pm at 1:45 pm |
  4. Norom

    gaysforpalin March 12th, 2009 12:46 pm ET

    even IF Kundra is not the current target of the investigation, the corruption happened on his watch…and Saint Barack wants him for CIO?

    Uh huh...just like 9/11 happened on Bush's watch, eh?

    March 12, 2009 01:47 pm at 1:47 pm |
  5. outlaw

    When the new so call head of the RNC wake up and see he is being used as an ecape goat, he will step aside and let those flakes that appointed him as there mouth peice do there own negative talking and stop thinking this clown is keeping them clean come 2012.

    March 12, 2009 01:48 pm at 1:48 pm |
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