Former federal manager is sentenced
A former top head of the U.S. General Services Administration here was ordered to 90 days' home confinement as part of two years on supervised release for making false statements on health forms to obtain medical benefits for his then-girlfriend.
Peter Gaddy, a former deputy property manager of the federal agency that manages federal properties including the Prince Kuhio Federal Building, was convicted in November of three counts of making false claims by indicating on a benefits application that he was married at the time the form was filled out in October 2000. Gaddy did not marry until September 2001.
U.S. District Judge Alan Kay noted Gaddy's stable employment history and his government service in the Navy, the Census Bureau and the General Services Administration.
But as an employee familiar with government contracts and the rules and procedures that govern them, Gaddy "showed a lack of integrity by evading the rules," Kay said.
He ordered Gaddy to pay restitution of $7,374 to GSA -- the amount his former employer paid for medical benefits for his spouse-to-be.
Defense attorney William Harrison called the matter an "aberration" in Gaddy's record with the military and federal government. The episode occurred during a terrible period in his life, and he just wants to put the matter behind him, Harrison said.
Gaddy had maintained at trial that he wanted the benefits effective at a later date than when he applied but that the form was processed too early and the insurance coverage kicked in earlier that he expected.
"He believed he was doing the right thing, and that's why he litigated the thing and the jury agreed (to acquit) on five of the eight counts," Harrison said.
Prosecutors had also alleged that Gaddy submitted false claims, resulting in the government paying to ship his girlfriend's household goods and an Infiniti SUV to Hawaii after she followed him here to Hawaii.
Gaddy had claimed the criminal charges against him were in retaliation for blowing the whistle on his former supervisor whom he accused of contract improprieties and sexual harassment.
He also alleged the prosecution was brought to undermine a pending lawsuit he filed against the GSA and his former supervisor in connection with his termination.
At trial, assistant U.S. Attorney William Shipley disputed Gaddy's retaliation theory, noting the investigation against Gaddy's supervisor was nearly completed when Gaddy first began making anonymous complaints and that the information he provided was already known by investigators.
Gaddy was terminated in March 2003 after questions arose about the claims he made on his health benefits form and for moving expenses.