CIETC Executive Pleads Guilty to Conspiracy, Misapplication of Federal Funds and Federal Obstruction to Justice Charges

Des Moines, IA- On June 30, 2008, Ramona Cunningham, age 53, appeared before United States District Judge Robert W. Pratt, and entered guilty pleas to numerous charges related to the May 10, 2007 Superseding Indictment of the misapplication of funds by the Central Iowa Employment and Training Consortium, or CIETC, announced United States Attorney Matthew G. Whitaker.

Specifically, Cunningham pled guilty to the following charges:

Count 1, Conspiracy to misapply funds of the United States - Arson, in violation of Title 18, United States Code, Section 371;

Counts 2 & 28, Fraud or misapplication concerning Federal funds under the Workforce Investment Act, in violation of Title 18, United States Code, Section 665;

Counts 12, 20, 23, & 26, Misapplication of funds concerning programs receiving Federal Funds, in violation of Title 18, United States Code, Section 666;

Count 27, Obstruction of an investigation or inquiry, in violation of Title 18, United States Code, Section 665.

Ms. Cunningham admitted that between January 1, 2003, and April 12, 2006, she did knowingly and willfully combine, conspire and agree with at least one other person, to commit misapplication of funds of the United States in that she committed at least one overt act in furtherance of Ramona Cunnigham - pleads guilty to Federal Charges in the conspiracy, including by receiving bonuses and supplemental compensation during the period July 1, 2003, through April 12, 2006 and in attempting to conceal from discovery by certain Federal agencies the payment of excessive and unreasonable compensation of CIETC’s executive staff during the course of the conspiracy.

“Even though this plea agreement was a long time coming, Ms. Cunningham’s plea of guilty today is a victory for the tax paying public, that works hard every day to put food on their tables and gas in their cars. I hope the CIETC case serves as a lesson in how publicly funded entities must operate to serve the common good.” commented U.S. Attorney Matthew G. Whitaker.

Gordon Heddell, Inspector General of the United States Department of Labor, said: "The Workforce Investment Act creates programs and opportunities that are intended to help economically disadvantaged, under-employed, and unemployed individuals enhance their long-term employment potential. Today's guilty plea by Ramona Cunningham to several charges, including the misapplication of funds intended for job training, sends a strong message that we will aggressively pursue individuals who misuse Federal funds for personal gain. I would like to commend the efforts of our law enforcement partners and the U.S. Attorney's Office to bring to justice those who commit these types of crimes."

The CIETC investigation was conducted by the Federal Bureau of Investigations, the United States Department of Labor’s Office of Inspector General, the United States Department of Health and Human Services’ Office of Inspector General, the Iowa State Auditor’s Office, and the Iowa Division of Criminal Investigations. It was prosecuted by the U.S. Attorney’s Office of the Southern District of Iowa.