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FORMER DEPARTMENT OF STATE EMPLOYEE PLEADS GUILTY TO

WASHINGTON, D.C. - A former Department of State employee today pleaded guilty to a misdemeanor conflict-of-interest charge, for participating personally as a federal employee in a business matter in which he and his outside employer had a financial interest. The one count information was filed in U.S. District Court in Washington, D.C.

According to court documents, in 1998 Matthew E. A. Lorin, 33, of New York City, was an EF-15 special government employee of the State Department as a Special Coordinator for the Public and Private Partnerships for the President's 2010 Initiative of Demining, in the Office of Humanitarian Demining. His duties included coordination of the State Department's efforts to facilitate the removal of land and sea mines worldwide, including demining by private entities.

During the same time period, Lorin received payments totaling $20,000 from Americas Partners, a private, for-profit business, which was participating in a joint venture to develop a theme park, known as the Grand Oasis, in Israel and Jordan. Construction of the Grand Oasis required mine clearing operations, and Americas Partners provided Lorin with a one per cent equity interest in the project.

In September 1998, Lorin telephoned Ambassador Dennis B. Ross, Special Middle East Coordinator, identified himself as a State Department employee, described the Grand Oasis project, and recommended that State support it. Lorin then sought permission from his ethics advisor to send a memorandum to Ambassador Ross recommending the project and seeking Department of State support.

The next day, however, without awaiting a response from his ethics advisor, Lorin transmitted the memorandum to Ambassador Ross and others at the State Department. Lorin's ethics advisor then advised him to cease all activity with State on behalf of Americas Partners.

Lorin took no action to withdraw the memorandum or to advise any recipient that he was prohibited from transmitting it.

According to the plea agreement, Lorin has admitted his offense and has agreed to pay a fine of $20,000. Magistrate Judge Deborah A. Robinson set a sentencing date for July 7, 1999.

The case was handled by Trial Attorney Richard C. Pilger of the Public Integrity Section and investigated by the State Department's Office of Inspector General.

99-142

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