Response by Department of Defense
Acting Inspector General
Donald Mancuso

The Majority Staff for the Senate Judiciary Subcommittee on Administrative Oversight and the Courts has conducted an inquiry into the personnel practices and conduct of certain agents within the Defense Criminal Investigative Service (DCIS). The DCIS is an agency in the Office of the Department of Defense (DOD) Inspector General (IG). The former Director of DCIS - a sworn federal law enforcement officer - is now Acting DOD IG, Mr. Donald Mancuso. Mr. Mancuso was Director of DCIS from 1988-1997. Mr. Mancuso is currently a potential candidate for nomination to be the next DOD IG.

This staff report contrasts DCIS personnel management practices that condoned and encouraged maltreatment of rank and file agents, including the use of falsified investigative reports, while protecting and rewarding a fellow manager who was a convicted felon. Management's favorable treatment of the convicted felon, Mr. Larry J. Hollingsworth, will result in his receiving substantial sums of money in federal law enforcement retirement annuities between 1996 and the year 2008. If DCIS management had exercised good judgment and other more reasonable options, Mr. Hollingsworth would not have been allowed to retire on his 50th birthday and receive the $750,000.00 in benefits. He would have had to wait 12 years to retire. In another matter, a criminal investigator, who falsified reports, Mr. Mathew A. Walinski, also received a cash bonus award after his misconduct was brought to the attention of senior DCIS management.

The staff report cites three separate personnel cases brought to the Subcommittee's attention involving DCIS. Each of these cases involves questionable personnel practices that were either condoned or ignored by DCIS management between 1993 and 1996.

The Subcommittee on Administrative Oversight and the Courts has primary jurisdiction and oversight authority for administrative practices and procedures throughout the federal government. As part of the process of conducting its oversight responsibilities, the Subcommittee has been examining administrative procedures followed by various inspectors general. This report reflects the Subcommittee Majority Staff's review of questionable administrative decisions and misconduct within the criminal investigative branch in the DOD IG's office - DCIS, while Mr. Mancuso was the director of the organization.

Background

In June of 1999, the Subcommittee Majority Staff was approached by a former agent of DCIS, Mr. Gary Steakley. Mr. Steakley alleged that a DCIS internal affairs Special Agent, Mr. Walinski, had a history of falsifying official reports to damage the reputations of fellow agents. Mr. Steakley also alleged that senior officials at DCIS were fully aware of this agent's questionable practices, yet failed to take appropriate corrective action.

It should be noted that an investigator in the Office of Special Counsel (OSC), Mr. William Shea, also looked into Mr. Steakley's allegations of DCIS misconduct. OSC concluded that Mr. Steakley was not a victim of prohibited personnel practices. While the staff examined the conduct of DCIS supervisors in regards to several specific decisions, it did not attempt to examine the numerous other allegations raised by Mr. Steakley.

While investigating Mr. Steakley's allegations, the staff learned that Mr. Walinski was supervised by Mr.Hollingsworth - the director of internal affairs. Mr. Hollingsworth was convicted of a felony in April 1996. Nonetheless, management allowed him to retire with full federal law enforcement retirement benefits six months after his felony conviction. Federal law enforcement agencies commonly remove an employee on criminal misconduct alone, or at a minimum, immediately after a felony conviction. Had management availed itself of other appropriate legal removal options, Mr. Hollingsworth would not have been allowed to retire on his 50th birthday, which gave him entitlement to benefits amounting to more than three quarters of a million dollars.

The staff reviewed numerous documents to include the above-referenced OSC investigation, DOD personnel files, DOD investigative reports, a Subcommittee-requested review by the Office of Personnel Management (OPM), State Department Diplomatic Security investigative reports, and public court papers registered in the U.S. District Court for the Eastern District of Virginia. The Subcommittee Majority Staff also conducted the following formal interviews:

Former DOD personnel:
Mr. Matthew Walinski	- DCIS Special Agent Internal Affairs
Mr. Larry Hollingsworth	- DCIS Director of Internal Affairs
Mr. William Dupree	- Deputy Director of DCIS
Ms. Eleanor Hill	- Former DOD Inspector General
Current DOD personnel:
Mr. Donald Mancuso	- Former Director of DCIS and Current Acting IG for DOD
Ms. Jane Charters	- DCIS Investigative Support
Ms. Donna Seracino	- Director of Personnel for DCIS
Ms. Linda Martz	- Employee Relations Specialist
Mr. Paul Tedesco	- DCIS liaison agent in Hollingsworth criminal case
Mr. John Keenan	- Current Director of DCIS, formerly Dir., DCIS Operations
Mr. Thomas Bonner	- Current Agent in Charge Dallas Office, DCIS, Assist. Dir. DCIS Internal Affairs
Ms. Nancy Gianino	- Air Force Payroll Specialist
Lt.Col Greg McClelland	- DOD IG Administrative Investigator
State Department Personnel:
Special Agent Robert Starnes
Special Agent Sean O'Brien
Office of Special Counsel:
Investigator William Shea
Current and former DCIS Special Agents were also interviewed on a confidential basis. They requested confidentiality out of fear of reprisal. This report will show fears of such reprisal are plausible based on the facts developed by the Subcommittee.
Report Continued