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B-190291 1 (1978-01-03)

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        THE  COMPTROLLER GENERtAL
        O   .THE UNiTED STATES
        WASHINGTON. D.C. RO48
D %JT5I1


               DATE:   January 3, 1978


OF: Robert E. Bates, Jr., Deceased
    Unpaid Compens&tion--Indebtedness to
    United States
    Caceased employee was found to have
    obtained over $64,000 frco Governmint
    through falsified purchase orders and
    invoices.  Indebtedness may be col-
    lhcted from unpaid salary and accrued
    annual leave.


     This action is in response to the request fo a decision
t.tom Mr. Albert C. Allen, an authorized certifying officir of
the Department if Health, Education, and Welfare, concerning the
disposition of unpaid EcompenEstion due the beneficiaries cf
Robert E. Bates, Jr., a deceased employee.

     The administrati.ve report states that an employee of %he
Center for Disease Control (CDC) during the period from January 1969,
through January 1977, obtained at least $64,836.85 from the Govern-
ment through the use of falsified purchase orders and altered
invoices.  The report states further that the employee was notified
by CDC of the termination of his eployment and that on the evening
prior to his termination date the emplcyee allegedly committed
suicide.  The authorizad certifying officer inquires as to whether
unpaid compensation in the amount of $10,276.22, representing
unpaid salary and accrued annual leave, may be applied toward the
deceased employee's indebtedness to the Government. CDC has also
filed a notice for recovery of indebtedness with the U.S. Civil
Service Commission to b? applied against The employee's retirement.
contributions or such annuity as might be paid to his survivors.

     Our Office has long held nat where ant employee is 'indebted to
the United States the debt nay be withheld or collected from final
salary paymentz, lump-sum payments for leave, and retirement con-
tributions or annuities. 29  Comp. Gen. 99 (1949); 21 id. 1000 (1942).
See also Boerner v. Unized States, 117 F.2d 387 (2nd Cir. 1941);
United States v. United States  delity & Guaran t Co., 35 F.Supp.
959 (E. D. Pa. 1940); 2'Leary v. United States, 82 it. Cl. 305 (1936).


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