A former assistant inspector general for the Department of Housing and Urban Development (HUD) has been convicted by a federal jury of concealing efforts to direct tens of millions of dollars in government business to a friend and government contractor to whom he owed money.
Eghbal “Eddie” Saffarinia, 62, of Alexandria, Virginia, perpetrated a scheme to conceal key facts, including the extent and nature of his relationship with a “personal friend” who was the owner and CEO of an information technology company, according to court documents and evidence presented a trial. The Department of Justice’s (DOJ’s) announcement of the conviction states that Saffarinia received “payment and loans from his friend totaling $80,000.”
“Saffarinia disclosed confidential internal government information to his friend and undertook efforts to steer government contracts and provide competitive advantages and preferential treatment to his friend’s company,” the DOJ states in the announcement of the conviction. “Saffarinia also failed to disclose this financial relationship and another large promissory note on his public financial-disclosure forms.”
Saffarinia was convicted of one count of concealing material facts, three counts of making false statements and three counts of falsifying a record or document. He faces a maximum sentence of 80 years in prison and is slated to be sentenced on Dec. 19.
Fraud risk continues to rise even as the market contracts
According to a Q2 analysis by FundingShield, there was a 40.69% increase in wire-related issues compared to Q1 2022. Among today’s lower volumes, the need to keep costs down while still managing risks has never been greater.
Presented by: FundingShield
The case was investigated by the FBI field office in Washington, D.C., and the Office of the Inspector General of the Intelligence Community.
