Carlos Smiley was sentenced last Friday to federal prison for making false statements in his annual conflict of interest certification. Smiley was a long-time federal employee and Senior Contracting Officer at the Centers for Disease Control and Prevention (CDC), and the former President of the National Contract Management Association.
“Federal contracting officers must disclose payments from outside parties fully and honestly,” said U.S. Attorney Byung J. “BJay” Pak. “Failure to do so limits the ability of federal agencies to detect, deter and punish undisclosed conflicts of interest.”
“We hold our employees to the highest standard and expect them to demonstrate the utmost integrity as civil servants to the nation,” said Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General – Special Investigations. “Smiley’s sentencing demonstrates, making false statements for the purpose of financial gain will not be tolerated.”
According to U.S. Attorney Pak, the charges and other information presented in court: On February 16, 2012 and January 7, 2013, Smiley completed Confidential Financial Disclosure Reports required by his position as a CDC Contracting Officer. Both times, Smiley answered “no” to the question asking whether he had received outside income.
Between September 2011 and January 2012, Smiley received several payments from A-TEK, a Virginia-based holding company that was seeking to do business with the CDC during that time. CDC previously granted Smiley’s request to operate a company called Charisma III, Inc. as an outside business activity. After that, Smiley ostensibly received payments through Charisma III for real estate investment advice.
In 2012, A-TEK was awarded a single-source contract for the staffing of CDC field stations overseas. Smiley signed the contract as the approving contracting officer for CDC. A-TEK turned down the contract after learning of the relationship between Smiley and a representative of its holding company, who was also an A-TEK employee until fired for his conduct. Smiley failed to disclose six payments for a total of $30,600.
In 2015, CDC investigators confronted Smiley about the payments. He admitted to receiving them and to having invented the Charisma III officer whose fictitious name appeared on the purported agreement between Charisma III and the holding company for real estate investment advice.
Carlos Smiley, 57, of Roswell, Georgia was sentenced to three months in federal prison by U.S. District Judge Thomas W. Thrash, Jr. on November 15, 2018. Smiley was also sentenced to one year of supervised release and 200 hours community service following his release from prison. He was also fined $5,000. Smiley was convicted of the charge on July 19, 2018, after pleading guilty to making false statements.
The case was investigated by the Department of Health and Human Services, Office of the Inspector General.