ALEXANDRIA, Va. – A Quantico man pleaded guilty today to wire fraud in connection with a scheme to embezzle over $380,000 from his former union, which represented federal law enforcement officers at the Pentagon.
“The defendant routinely embezzled money that belonged to a federal law enforcement union to fund his personal expenditures while vacationing in the Dominican Republic and to pay for his personal gambling at a casino,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA will continue to hold accountable those who steal and siphon off critical funds from our law enforcement partners.”
According to court documents, Arthur Penn, 64, served from 1999 through 2015 as the Chairman of the Fraternal Order of Police Defense Protective Service Labor Committee Pentagon, a local union that represented officers of the Pentagon Force Protection Agency. During his tenure, Penn routinely embezzled funds from the Union for his personal benefit, and spent the stolen funds on gambling, to pay for a personal trip to the Dominican Republic, and for his day-to-day living expenses.
“As alleged, for years Arthur Penn stole money from funds intended to benefit his fellow law enforcement colleagues and used the money for his own personal benefit and entertainment,” said James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “The FBI and our partners are dedicated to rooting out this type of opportunistic corruption and fraud, and ensuring those who commit these crimes are brought to justice.”
Penn sought to conceal and prevent the detection of his embezzlement by failing to make regular reports to Union members, by violating his obligation to file regular financial reports with the Department of Labor’s Office of Labor-Management Standards, and by siphoning off most of the embezzled funds through cash transactions, thereby avoiding the creation of financial records that would have revealed the fraud.
Penn is scheduled to be sentenced on July 2. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark Wheeler, District Director, Washington District Office, U.S. Department of Labor, Office of Labor-Management Standards; and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after Senior U.S. District Judge T.S. Ellis, III accepted the plea.
Assistant U.S. Attorneys Matthew Burke and Christopher Hood are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-251.