Between November 17, 2008 and November 22, 2008, over 40 federal agents and local law enforcement personnel participated in a series of search warrants and arrest warrants in Southern CA. The GSA OIG was the lead agency, and other agencies included DOT-OIG, NCIS, Army-CID, DCIS, USDA-OIG, NASA-OIG, and the San Bernardino and Riverside County Sheriff Departments.

GSA OIG agents from the JI-5, JI-9 (to include Laguna Niguel), and JI-10 offices participated in this operation. Subjects Steven B. Smith and Bradley Garner were arrested and over $1 million worth of stolen property was seized.

BACKGROUND
SMITH and co-conspirators are under investigation for theft of federal excess property. SMITH obtained access to the GSA system in December 2004, and had screened and successfully transferred over 200 assets valued at approximately $2.8 Million dollars, including construction equipment, a jeep vehicle, and a 50-foot Choy Lee Fishing Yacht valued at $500,000.

SMITH, an FAA repair technician, reportedly screened these assets on behalf of various DOT agencies to include the FAA, the Office of the Secretary, and the Maritime Administration. The investigation determined that SMITH was not authorized to screen property for any of these agencies. Further, our investigation has determined that SMITH and GARNER had stolen the majority of the federal property items for their personal use. The investigation also determined that SMITH and GARNER defrauded an insurance company by way of filing a $45,000 claim for damage to a stolen Cessna aircraft that was excessed by the U.S. Forest Service. The case is being prosecuted by Assistant U.S. Attorney David R. Jennings in the Western District of WA.