Case 1:17-cr-00312-WJM Document 1 Filed 09/12/17 USDC Colorado Page 1 of 6

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF COLORADO

Case No. 17-cr-00312-CMA

UNITED STATES OF AMERICA,

Plaintiff,

v.

1. OLEG VASILYEV,

Defendant.

INDICTMENT
18 U.S.C. §§ 1341 and 2 [Mail Fraud]

The Grand Jury charges:

COUNT 1
Mail Fraud

1. Between in or about October 2007 and October 2012, the Defendant

OLEG VASILYEV devised and intended to devise a scheme to defraud the United

States Department of Energy (DOE) and the University of Colorado (hereinafter referred

to as "the scheme").

2. As part of the scheme, between on or about August 2007 and on or about

October 2012, Defendant OLEG VASILYEV, a professor in the Department of

Mechanical Engineering at the University of Colorado in Boulder, Colorado, submitted

an application to Los Alamos National Laboratory (LANL), a laboratory overseen by the

National Nuclear Security Agency, for a research contract. The National Nuclear

Security Agency is part of the United Stated Department of Energy (DOE). LANL under

Prime Contract Number DE-AC52-06NA25396 (hereinafter referred to as “Prime

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Contract), authorizes the management and operation of LANL to Los Alamos National

Security, LLC (LANS).

3. As part of the scheme, Defendant OLEG VASILYEV did not follow the

protocols of the University of Colorado for making such an application including failing to

submit such application and proposal through the Office of Contracts and Grants

(OCG). The University of Colorado seeks out and obtains government sponsored

research contracts and grants. The University’s OCG has the responsibility to obtain

and oversee such contracts and grants and receives a percentage of the funds from

each contract.

4. The contract between Defendant OLEG VASILYEV and LANS, known as

Standard Research Sub-contract number 57206-001-07 (hereinafter referred to as “the

sub-contract”) was issued by LANS pursuant to LANS’ operational authority under the

Prime Contract. Under the sub-contract, Defendant OLEG VASILYEV, acting in his

capacity as a professor, was designated the Principal Investigator (PI) and agreed to

perform his respective obligations in accordance with the terms and conditions under

the provisions of the sub-contract. The sub-contract was executed on or about August

29, 2007. It continued, with modifications, until on or about October 2012.

5. As part of the scheme, Defendant OLEG VASILYEV directed a University

of Colorado staff member to open a University internal discretionary account, also

referred as an auxiliary and Fund 29 account, (hereinafter referred to as Fund 29) for

him and to have all payments from LANS for the sub-contract deposited into that

account. By having all payments deposited into the Fund 29, Defendant OLEG

VASILYEV was able to bypass the OCG and university legal counsel from ever knowing

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that LANS made payments on a contract, as opposed to a regular grant or contract

where the funds would have to go through the OCG.

6. As part of the scheme, Defendant OLEG VASILYEV created invoices

reflecting allowable expenses, such as salaries and benefits, which he delivered to

LANS for reimbursement. Defendant OLEG VASILYEV sent the staff member the

invoices by email and instructed the staff member to forward them to LANS.

7. As a part of the scheme, Defendant OLEG VASILYEV, caused LANS to

mail checks as payment for alleged expenses listed in the invoices to the University of

Colorado School of Engineering which were deposited into the Fund 29. Some of those

checks included:

a. 10-16-07 Check for $7,999, check number 148871,

b. 2-20-08 Check for $13,470, check number 160811,

c. 5-19-08 Check for $12,042, check number 168270,

d. 3-10-09 Check for $28,095, check number 189078,

e. 10-14-09 Check for $26,964, check number 203599

f. 5-12-10 Check for $25,312, check number 215582,

g. 10-20-10 Check for $9,234, check number 226168,

h. 3-08-11 Check for $22,000, check number 233103,

i. 9-13-11 Check for $10,392, check number 244075,

j. 11-01-11 Check for $9,352, check number 247081,

k. 2-28-12 Check for $14,723, check number 252690,

l. 5-24-12 Check for $5,925, check number 257389,

m. 10-23-12 Check for $30,000, check number 265019

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8. As a part of the scheme, Defendant OLEG VASILYEV, instructed the

staff member to endorse the checks mailed from LANS for payment on the invoices and

deposit those funds into the Fund 29 that was opened under the directions of Defendant

OLEG VASILYEV.

9. As a part of the scheme, Defendant OLEG VASILYEV, submitted

vouchers in order to receive the funds from the sub-contract. Through these vouchers,

Defendant OLEG VASILYEV requested reimbursement for expenses that were not

allowable under the sub-contract, such as expenses related to international personal

travel. Defendant OLEG VASILYEV was reimbursed for disallowed expenses claimed

on these vouchers with money LANS paid based on the allowable expenses Defendant

OLEG VASILYEV claimed on the invoices previously submitted to LANS.

10. As part of the scheme, Defendant OLEG VASILYEV, obtained

approximately $204,698.54, from DOE through LANS and ensured that those funds

were placed into the Fund 29 for his personal benefit.

11. On or about October 23, 2012, within the State and District of Colorado

and elsewhere, Defendant OLEG VASILYEV, having devised and having intended to

devise the aforementioned scheme, for the purpose of executing the scheme, did

knowingly cause to be deposited with and cause to be sent and delivered by the United

States Postal Service, according to the directions thereon, mail in which was enclosed a

check in the amount of $30,000, check number 265019, sent by LANS to Univ of

Colorado, Dept of Mechanical Eng, 427 UCB 1111 Engineering Dr., Boulder, CO

80309-0427 for invoice payment, in violation of Title 18, United States Code, Sections

1341 and Section 2.

12.
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Forfeiture Allegation

13. The allegations contained in Count One of this Indictment is hereby re-

alleged and incorporated by reference for the purpose of alleging forfeiture pursuant to

the provisions of 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c).

14. Upon conviction of the violations alleged in Count One of this Indictment

involving the commission of violations of 18 U.S.C. § 1341, defendant OLEG VASILYEV

shall forfeit to the United States, pursuant to Title 18, United States Code, Section

981(a)(1)(C), and Title 28, United States Code, Section 2461(c) any and all of the

defendant’s right, title and interest in all property constituting and derived from any

proceeds the defendant obtained directly and indirectly as a result of such offense,

including, but not limited to: s money judgment in the amount of proceeds obtained by

the defendant as a result of the scheme.

15. If any of the property described above, as a result of any act or omission

of the defendant:

a) cannot be located upon the exercise of due diligence;

b) has been transferred or sold to, or deposited with, a third
party;
c) has been placed beyond the jurisdiction of the Court;
d) has been substantially diminished in value; or
e) has been commingled with other property which
cannot be subdivided without difficulty;

it is the intent of the United States, pursuant to Title 21, United States Code, Section

853(p), as incorporated by Title 28, United States Code, Section 2461(c), to seek

forfeiture of any other property of said defendant up to the value of the forfeitable

property.

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A TRUE BILL:

Ink signature on file in Clerk’s Office

FOREPERSON

Robert Troyer
Acting United States Attorney

s/ Jeremy Sibert
JEREMY SIBERT
Assistant United States Attorney
United States Attorney's Office
1801 California Street, Suite 1600
Denver, Colorado 80202
Telephone: (303) 454-0100
Fax: (303) 454-0406
E-mail: jeremy.sibert@usdoj.gov

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DEFENDANT: Oleg Vasilyev

YOB: 1968

COMPLAINT Yes X No
FILED?
If Yes, MAGISTRATE CASE NUMBER:

HAS DEFENDANT BEEN ARRESTED ON COMPLAINT? Yes X

No

OFFENSE(S): Count 1: 18 USC §§ 1341 and 2 Mail Fraud

LOCATION Boulder County, Colorado

OF OFFENSE:

PENALTY: Count 1: NMT 20 years imprisonment; NMT $250,000 fine, or both; NMT 3 years
supervised release; $100 special assessment fee

AGENT: Joy Joyce

Special Agent, DOE

AUTHORIZED Jeremy Sibert

BY: Assistant U.S. Attorney

ESTIMATED TIME OF TRIAL:

five days or less X over five days ____ other

THE GOVERNMENT

X will seek detention in this case based on 18 U.S.C. § 3142(f)(2)

will not seek detention

The statutory presumption of detention is not applicable to this defendant.

OCDETF CASE: Yes X No