Government contractor fraud is at the heart of a new indictment returned by a federal grand jury in Washington, D.C. against a former senior manager in Virginia. Prosecutors say Danielle Hillmer, 53, of Chantilly, misled federal agencies for more than a year about the security of a cloud platform used by the U.S. Army and other government customers.
The indictment, announced yesterday, charges Hillmer with major government contractor fraud, wire fraud, and obstruction of federal audits. According to prosecutors, she concealed serious weaknesses in the system while presenting it as fully compliant with strict federal cybersecurity standards.
Government Contractor Fraud: Alleged Scheme to Mislead Agencies
According to court documents, Hillmer’s actions spanned from March 2020 through November 2021. During this period, she allegedly obstructed auditors and misrepresented the platform’s compliance with the Federal Risk and Authorization Management Program (FedRAMP) and the Department of Defense’s Risk Management Framework.
The indictment claims that while the platform was marketed as a secure environment for federal agencies, it lacked critical safeguards such as access controls, logging, and monitoring. Despite repeated warnings, Hillmer allegedly insisted the system met the FedRAMP High baseline and DoD Impact Levels 4 and 5, both of which are required for handling sensitive government data.
Obstruction of Audits
Federal prosecutors allege Hillmer went further by attempting to obstruct third-party assessors during audits in 2020 and 2021. She is accused of concealing deficiencies and instructing others to hide the true state of the system during testing and demonstrations.
The indictment also states that Hillmer misled the U.S. Army to secure sponsorship for a Department of Defense provisional authorization. She allegedly submitted, and directed others to submit, authorization materials containing false information to assessors, authorizing officials, and government customers.
These misrepresentations, prosecutors say, allowed the contractor to obtain and maintain government contracts under false pretenses.
Charges and Potential Penalties
Hillmer faces two counts of wire fraud, one count of major government fraud, and two counts of obstruction of a federal audit. If convicted, she could face:
- Up to 20 years in prison for each wire fraud count
- Up to 10 years in prison for major government fraud
- Up to 5 years in prison for each obstruction count
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The indictment was announced by Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division and Deputy Inspector General Robert C. Erickson of the U.S. General Services Administration Office of Inspector General (GSA-OIG).
The case is being investigated by the GSA-OIG, the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, and the Department of the Army Criminal Investigation Division.
Trial Attorneys Lauren Archer and Paul Hayden of the Criminal Division’s Fraud Section are prosecuting the case.
Broader Implications of Government Contractor Fraud
The indictment highlights ongoing concerns about the integrity of cloud platforms used by federal agencies. Programs like FedRAMP and the DoD’s Risk Management Framework are designed to ensure that systems handling sensitive government data meet rigorous security standards.
Allegations that a contractor misrepresented compliance raise questions about oversight and the risks posed to national security when platforms fall short of requirements.
Federal officials emphasized that the government contractor fraud case highlights the importance of transparency and accountability in government contracting, particularly in areas involving cybersecurity.
Note: It is important to note that an indictment is merely an allegation. Hillmer, like all defendants, is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
