Source: www.usdoj.gov\opa\pr\1996\July96\334crm.htm

FRIDAY, JULY 12, 1996

WASHINGTON, D.C. -- The Department of Justice announced today a federal judge sentenced William D. Lanning, a former GS- 15 senior program manager of the Defense Intelligence Agency (DIA), to serve 37 months in prison, and to pay $200,732 in restitution, for causing DIA program funds to be fraudulently paid to a woman who was not qualified to perform, and who did not perform, work for which the funds were paid.

The woman, Kay Winters (now known as Catherine Duchene), previously pled guilty to her role in the scheme and testified against Lanning at trial.

Lanning, 63, a resident of Northern Virginia, had been indicted on charges that in 1989 he arranged for Winters to be hired as a $500-a-day consultant to a highly technical computer- based electronic warfare project that Lanning directing at DIA.

Winters, who had previously worked as a legal secretary, had no education or experience relevant to the DIA project. At the time, however, she and Lanning had a romantic relationship, and her status as a consultant allowed her to travel with him to Europe, Asia, and Hawaii. From 1989 through 1993, Winters fraudulently received $401,464 in DIA funds. She used some of the funds to repay loans Lanning had made to her.

In addition to the conspiracy, the indictment charged Lanning with making false statements about Winters' qualifications, and with violating financial conflict of interest law. After a three-week trial, a jury found Lanning guilty on all charges on November 21, 1995.

Lanning was ordered by Judge John Garrett Penn to serve three years on supervised release following completion of his prison term.

The case was handled by trial attorneys Laura A. Ingersoll and Michael A. Attanasio of the Department's Public Integrity Section, Criminal Division. It was investigated by the Defense Criminal Investigative Service and the Internal Revenue Service's Criminal Investigation Division.