Government Contracts Monitor

Post-Employment Restrictions Ensnare Former FBI Official

October 31, 2013

In a recent case, a former Assistant Director of the FBI’s Criminal Investigative Division pled guilty to making prohibited post-employment contacts with government officials after he was hired as a consultant for a company under investigation by the FBI. In United States v. Kenneth Kaiser, No. 13-CR-10264, U.S. District Court for the District of Massachusetts, Mr. Kaiser pled guilty to one count of 18 U.S.C. §207(c), which prohibits certain post-employment contact with government officials by senior personnel of the executive branch and independent agencies for one year. The offense can be resolved either with a criminal or civil sanction, and if a criminal sanction is pursued, the offense is a misdemeanor with a maximum penalty of 1 year in prison and a $100,000 fine.

In this case, Mr. Kaiser retired from the FBI on July 3, 2009, and on the same day, became a consultant for LocatePlus Holding Corporation (“LocatePlus”). At that time, LocatePlus’s CEO and CFO were under investigation for securities fraud. On July 21, 2009, Mr. Kaiser called an FBI Supervisory Special Agent and requested a meeting with the case agents on the LocatePlus case. At the meeting, Mr. Kaiser expressed concern about the pace of the FBI’s investigation, and stated that he believed there was sufficient evidence to proceed against the CEO and CFO individually based on their fraudulent conduct against LocatePlus. Mr. Kaiser also asked the case agents to set up a meeting with the Assistant United States Attorney. That meeting took place on August 6, 2009, and similar topics were discussed. In another instance, Mr. Kaiser was hired by a corporate executive who received a threatening letter, and Mr. Kaiser asked the FBI Boston office to investigate the threat. All of these contacts violated 18 U.S.C. §207(c).

The plea agreement in this case calls for an agreed upon disposition of a $15,000 fine, and a mandatory court cost of $25. This is a good potential outcome for Mr. Kaiser. However, the Court is not bound to the parties’ agreement, and Mr. Kaiser will be sentenced in the future. This case serves as a reminder to current government personnel who are thinking of leaving the government to be mindful of their post-employment restrictions.

Brian Stolarz is the attorney responsible for the content of this article.