Key Takeaways
- A former senior manager at a Virginia-based government contractor has been indicted for major government fraud, wire fraud, and obstructing federal audits.
- The indictment alleges that the defendant, Danielle Hillmer, carried out a multi-year scheme to mislead federal agencies about the security of a cloud-based platform used by the U.S. Army and other government customers.
- Hillmer is charged with two counts of wire fraud, one count of major government fraud, and two counts of obstruction of a federal audit, and faces up to 20 years in prison for wire fraud, 10 years for major government fraud, and 5 years for each count of obstruction of a federal audit.
- The case is being investigated by the GSA-OIG, Defense Criminal Investigative Service, Naval Criminal Investigative Service, and The Department of the Army Criminal Investigation Division.
- The indictment highlights the importance of ensuring the security and integrity of cloud-based platforms used by government agencies, and the need for transparency and honesty in representations made to federal auditors and government customers.
Introduction to the Indictment
A federal grand jury in the District of Columbia has returned an indictment charging a former senior manager at a Virginia-based government contractor with major government fraud, wire fraud, and obstructing federal audits. The indictment alleges that Danielle Hillmer, 53, of Chantilly, Virginia, carried out a multi-year scheme to mislead federal agencies about the security of a cloud-based platform used by the U.S. Army and other government customers. The platform was marketed as a secure environment for federal agencies, but Hillmer allegedly concealed the platform’s noncompliance with security controls under the Federal Risk and Authorization Management Program (FedRAMP) and the Department of Defense’s Risk Management Framework.
The Alleged Scheme
According to court documents, Hillmer allegedly carried out the scheme from approximately March 2020 through at least November 2021. During this time, she allegedly made false and misleading representations to federal agencies, including the U.S. Army, about the security of the cloud-based platform. Specifically, the indictment alleges that Hillmer falsely represented that security controls were implemented at the FedRAMP High baseline and at Department of Defense Impact Levels 4 and 5, despite repeated warnings that the system lacked required access controls, logging, monitoring, and other security capabilities. Hillmer also allegedly sought to influence and obstruct third-party assessors during required audits in 2020 and 2021 by concealing deficiencies and instructing others to hide the true state of the system during testing and demonstrations.
Charges and Penalties
Hillmer is charged with two counts of wire fraud, one count of major government fraud, and two counts of obstruction of a federal audit. If convicted, Hillmer faces a maximum penalty of 20 years in prison for wire fraud, a maximum penalty of 10 years in prison for major government fraud, and a maximum penalty of five years in prison for each count of obstruction of a federal audit. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The indictment highlights the serious consequences of engaging in fraudulent activities and obstructing federal audits, and the need for individuals and organizations to prioritize transparency and honesty in their dealings with government agencies.
Investigation and Prosecution
The case is being investigated by the GSA-OIG, Defense Criminal Investigative Service, Naval Criminal Investigative Service, and The Department of the Army Criminal Investigation Division. Trial Attorneys Lauren Archer and Paul Hayden of the Criminal Division’s Fraud Section are prosecuting the case. The investigation and prosecution of this case demonstrate the commitment of law enforcement agencies to holding individuals and organizations accountable for fraudulent activities and ensuring the integrity of government contracting processes. Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division and Deputy Inspector General Robert C. Erickson of the U.S. General Services Administration Office of Inspector General (GSA-OIG) made the announcement, highlighting the importance of collaboration and cooperation between law enforcement agencies in investigating and prosecuting complex cases.
Conclusion
The indictment of Danielle Hillmer highlights the importance of ensuring the security and integrity of cloud-based platforms used by government agencies, and the need for transparency and honesty in representations made to federal auditors and government customers. The case also demonstrates the serious consequences of engaging in fraudulent activities and obstructing federal audits, and the need for individuals and organizations to prioritize compliance with federal regulations and laws. As government agencies increasingly rely on cloud-based platforms to store and process sensitive information, it is essential that contractors and individuals prioritize security and transparency to maintain the trust and confidence of federal agencies and the public.