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U.S. Department of Justice
Office of the United States Attorney
Western District of Tennessee

For Further Information
Contact: Leighn Anne Jordon

Phone: (901) 544-4231

October 17, 2006


FEDERAL OFFICIAL SENTENCED TO 46 MONTHS ON CORRUPTION CHARGE

Nashville, TN - October 17, 2006 - Natalie Coker, the former associate director of a major United States Department of Veterans Affairs (VA) facility was sentenced to 46 months in prison by United States District Court Judge Robert L. Echols.

Coker pled guilty earlier this year to a public corruption charge in connection with her duties at the VA. Coker was the Associate Director of the VA's Consolidated Mail Outpatient Pharmacy (CMOP) in Murfreesboro, Tennessee. The CMOP mails prescription drugs and other pharmaceutical products to eligible veterans at subsidized prices. The CMOP currently has an annual budget of approximately $500 million.

Coker was convicted of violating a federal conflict-of-interest law that under certain circumstances prohibits a public official from negotiating for post-government employment with companies that do business with the government. Coker admitted to negotiating for employment with a private company at the same time she was involved in her official capacity in the CMOP's establishment of a business relationship with that company.

In determining Coker's sentence, Judge Echols also found that Coker had demanded and received kickbacks from companies doing business with the VA. He found that she personally received more than $115,000 in kickbacks from a company that was selling security tape to the VA at inflated prices and that her actions contributed to more than $400,000 in total losses to the VA. In explaining the sentence, Judge Echols said that a combination of power and greed perpetuated the illegal activity and that Ms. Coker made conscious decisions to deceive and defraud. Judge Echols also fined Coker $10,000 and imposed a three-year term of post-incarceration supervised release.

U.S. Attorney Craig S. Morford said, "The 46-month sentence imposed by the Court reflects the seriousness of the crime. Government employees cannot exploit their positions of public trust for personal gain. The public in general and veterans in particular, who rely on VA employees to be good stewards of public funds, need to have confidence in the public officials who are given the privilege and responsibility of serving them."

This case was jointly investigated by the Federal Bureau of Investigation and the VA's Office of Inspector General, Criminal Investigation Division. The United States was represented in this case by Assistant U.S. Attorneys Bret Hester and Eli Richardson.


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