A former engineer with the Department of Energy’s Sandia Field Office has agreed to pay $165,000 to settle allegations that he worked for Air Force contractors while employed full-time by the DOE. The U.S. Attorney’s Office announced the resolution on December 3, 2025.
According to federal investigators, Jose A. Nieves was working at DOE when he accepted a position with Pacific Architects and Engineers (PAE) from April to September 2021. He then took another contractor job with Arctic Slope Regional Corporation (ASRC) from September 2021 through July 2022, all while remaining in his role at DOE.
Investigators allege that Nieves misrepresented his employment status during both hiring processes. He reportedly told PAE that he had retired from DOE and made similar claims to ASRC, despite maintaining his federal position throughout both periods of outside employment.
To conceal this dual employment, Nieves is accused of submitting false timesheets—19 to PAE, 24 to ASRC, and 33 to DOE—indicating full-time work at each employer during overlapping hours. This allowed him to receive salaries from multiple sources for the same time periods.
The contractors paid Nieves based on these timesheets and sought reimbursement from the government for his reported work hours. This resulted in improper use of taxpayer funds.
Under the terms of the settlement agreement, Nieves will repay $156,799.22 in restitution as part of a total payment of $165,000.
U.S. Attorney Ryan Ellison stated: “The U.S. Department of Energy’s Office of Inspector General supported the Government’s investigation.” He also acknowledged Assistant United States Attorney Sean M. Cunniff and auditors Phillip Stella and Julie Chappell as well as criminal investigators from the Air Force Office of Special Investigations for their roles in uncovering the scheme.