FOR IMMEDIATE RELEASE CRM FRIDAY, JANUARY 15, 1999
(202) 514-2007
WWW.USDOJ.GOV
FORMER CIA OFFICIAL SENTENCED FOR BANK FRAUD
WASHINGTON, D.C. -- Robert R. Karaitis, a former Central Intelligence Agency employee, was sentenced today to one year and one day in federal prison for defrauding and intending to defraud a federal credit union out of more than $80,000 he borrowed for two luxury automobiles that he did not purchase, the Department of Justice announced today.
In addition to the prison sentence, Karaitis was ordered by U.S. District Judge Albert V. Bryan, Jr., to pay restitution to the credit union of $67,487.
On October 29, Karaitis pleaded guilty to bank fraud in U.S. District Court in Alexandria, Va., for defrauding and intending to defraud the credit union of $80,639. As part of a plea agreement, Karaitis agreed to resign from the CIA and reimburse the agency $31,713 for conduct unrelated to the fraud against the federal credit union.
The case was investigated by the Federal Bureau of Investigation with the assistance of the CIA's Office of Inspector General. The prosecution was handled by the Public Integrity Section of the Department's Criminal Division in Washington, DC.
####
99-018