KEVIN J. SCHROCK, 40, a Major in the U.S. Army, currently residing in Brandenberg, Kentucky, pleaded guilty today in U.S. District Court in Tacoma to money laundering. SCHROCK admits he stole money that was to be used for humanitarian or rebuilding purposes in Iraq, and deposited it into his own bank accounts. SCHROCK brought the stolen funds back into the United States, and deposited them in bank accounts in the Lacy, Washington, area. SCHROCK laundered more than $47,000 of the stolen funds by breaking the currency into a series of small deposits. SCHROCK is scheduled to be sentenced by U.S. District Judge Ronald B. Leighton on June 10, 2011.

According to the plea agreement signed today, SCHROCK was deployed with the 1st Brigade, 25th Infantry Division, Mosul, Iraq, from September 2004 to September 2005. From September 2004, to January 2005, SCHROCK was appointed the “Paying Agent” for the Commanders Emergency Relief Program. The program is designed to allow commanders to fund humanitarian needs or rebuilding projects in the war zone, without getting slowed down by a lot of government regulations. The Paying Agent is responsible for requesting and obtaining the funds from the Army finance office and disbursing the funds. During the second half of his tour, January 2005 to September 2005, SCHROCK was the “Contracting Officer’s Representative,” responsible for day-to-day contact with contractors in Iraq on behalf of the U.S. government.

When SCHROCK was home on leave in April 2005, he deposited $18,900 into his bank accounts in two deposits. From September 2005 to December 2005, he made eighteen more cash deposits totaling more than $28,000. When questioned in January 2010, SCHROCK claimed the deposits in April were from the sale of a car. He said the later deposits were of cash he and his wife had been saving around the house. In June 2010, SCHROCK was interviewed again. This time he admitted he stole $45,000 from funds he was to administer in Iraq, and that he smuggled the cash home on his person. SCHROCK admits he broke the deposits up in smaller amounts to try to avoid currency reporting requirements.

Money laundering is punishable by up to 20 years in prison. SCHROCK has agreed to forfeit any assets purchased with the stolen funds, and has agreed to pay $47,461 to the United States.

The case was investigated by U.S. Army Criminal Investigation Division (CID), the Special Inspector General for Iraq Reconstruction (SIGIR) and the Defense Criminal Investigative Service (DCIS). The case was prosecuted by Assistant United States Attorney David Reese Jennings and Marc Perez.

 

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