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U.S. Department of Justice PRESS RELEASE FOR IMMEDIATE RELEASE
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Former Charge d’Affair of Embassy of Papua New Guinea Sentenced for Committing Fraud Against Embassy
Washington, D.C. - Graham Michael, a former Charge d’Affair/Acting Ambassador, and Counselor for the Embassy of Papua New Guinea (“PNG”), has been sentenced in connection with his prior guilty plea to defrauding the Embassy, announced today U.S. Attorney Jeffrey A. Taylor and Joseph Persichini, Jr., Assistant Director in Charge of the FBI’s Washington Field Office.
Michael, 42, who lives now in Bunker Hill, West Virginia, appeared for sentencing today in the U.S. District Court for the District of Columbia before the Honorable Judge John D. Bates, who sentenced Michael to five years of probation, with 250 hours of community service, and ordered him to make restitution to the Embassy of $70,052. Furthermore, because Michael is not a citizen of the United States, his conviction may subject him to detention, deportation and other sanctions at the direction of the U.S. Immigration and Customs Enforcement.
According to the evidence proffered by the government at the time of Michael’s guilty plea in March 2007, with which Michael agreed, Michael was employed as the Charge d’Affair/Acting Ambassador and Counselor for approximately six and a half years for the Embassy. Michael tendered his resignation from the Embassy effective April 30, 2004, with the understanding he would return to employment at the Embassy Headquarters in PNG. He failed to return and was officially terminated on December 7, 2004. In conjunction with his planned repatriation, Michael committed a series of fraudulent transactions against the Embassy, including the following:
Sale of Residence
On April 1, 2002, the Embassy sold the residence it owned, and in which defendant Michael was living, in the 5000 block of Cathedral Place, NW, Washington, D.C., for $530,000. The Embassy sold the property on its own without using a real estate company. Shortly after the closing, Michael approached the Embassy Administrative Officer (“AO”) and asked him to insert a $26,000 broker fee into the HUD-1 form. The AO did so on or about April 22, 2002. Thereafter, on or about June 19, 2002, the AO sent by telefax and Federal Express copies of the HUD-1 form and related sale documents from Washington, D.C., to the Embassy Headquarters in PNG.
On June 3, 2002, Michael requested the AO to write him a check for $25,900 from the Embassy’s bank account where the proceeds of the sale had been deposited. Michael told the AO that the funds were to be used for his repatriation to PNG. The AO did so, although this was not the normal procedure for obtaining repatriation funds. Several days later, Michael gave the AO a $5,000 check for his assistance.
Colonial Moving & Storage
In July of 2002, Michael obtained permission from Embassy Headquarters to send some of his possessions back to PNG. Three quotes were obtained to pay for the shipping, which quotes were sent to Headquarters for approval. After obtaining approval, Michael told the AO he was going to pay for the shipping himself.
On July 29, 2002, Michael gave the AO a copy of a personal check for $20,750, from Michael to Colonial Moving & Storage Co. Michael told the AO that he paid the movers himself and wanted to be reimbursed by the Embassy. On August 8, 2002, the AO gave Michael an Embassy check for $20,750 to pay the reimbursement.
Colonial Moving & Storage Co. went out of business in July 2002. It never shipped Michael’s items and, accordingly, did not receive a payment of $20,750 from Michael to do so.
Chester Courier Consultants, LLC
In March 2004, the AO received three quotes from couriers to move Michael’s personal effects back to PNG. The lowest quote was from Chester Courier Consultants, LLC (“CCC”), and was given to the AO by Michael.
On March 25, 2004, the AO drafted a check from the Embassy to CCC for $23,402 and gave the check to Michael to provide to CCC. Investigation in this matter showed that Michael’s goods were never shipped back to PNG. Further, the investigation showed that CCC was an LLC set up by Michael in West Virginia on March 15, 2004, and dissolved by Michael on June 1, 2004. The name on the signature line on the quote sheet was determined to be a neighbor of Michael in West Virginia, but the neighbor denied knowing Michael or working for CCC. The business address on the quote sheet was an address in Maryland that did not exist. The telephone number on the quote was a West Virginia prefix, and appeared to be a number to Michael’s business in West Virginia.
In announcing today’s sentence, U.S. Attorney Taylor and Assistant Director Persichini praised the hard work of the FBI agents involved in this matter, especially Special Agent Kelly Bender. They also acknowledged the efforts of Legal Assistant Teesha Tobias, as well as Assistant U.S. Attorney Daniel Butler, who prosecuted this matter.