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From August 1998 through July 2005, Potoski was a civilian employee of the U.S.
Army, serving as Director of Contracting for the Edelweiss Lodge and Resort,
Armed Forces Recreation Center (AFRC Europe), in Garmisch, Germany. The
Department of the Army serves as the executive agent for the AFRC Europe,
operating the AFRC Europe on behalf of the Department of Defense. Patrons at the
AFRC Europe include active duty U.S. military personnel serving in Afghanistan
and Iraq.
The complaint alleges that Potoski accepted the bribes for himself, his family
members and others in the form of cash, home renovations, flat screen televisions,
computer laptops, automobile maintenance, airline tickets, hotel rooms, trips,
cleaning services, furniture, artwork, appliances, Oktoberfest tickets, tickets to the
Indianapolis 500, and ski passes. Potoski is formally charged with accepting bribes
in his capacity as a public official; accepting a kickback from a government
contractor or subcontractor, in violation of the Federal Anti-Kickback Act; traveling
in interstate or foreign commerce in aid of a racketeering enterprise; and
conspiracy. Potoski has cooperated in the government's continuing investigation of
the contractors and subcontractors.
The case was investigated by the U.S. Army Criminal Investigation Division
Command and the Internal Revenue Service-Criminal Investigations. It is being
prosecuted by Deputy Chief Mark F. Mendelsohn and Trial Attorney Michael K.
Atkinson of the Fraud Section of the Criminal Division at the U.S. Department of
Justice, Washington, D.C., with assistance from Steve DeBrota, Assistant United
States Attorney, Southern District of Indiana, and Cynthia Monaco, Assistant U.S.
Attorney, Eastern District of New York. The investigation is continuing with the
assistance of foreign law enforcement agencies.
The charges against the defendants are allegations only and the defendants are
presumed innocent until and unless convicted at trial.
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05-484