A Kansas man was sentenced yesterday to 29 months in prison for conspiring to fraudulently steer and award subcontracts by a major engineering firm for work on nuclear weapons manufacturing projects for the National Nuclear Security Administration’s Kansas City National Security Campus (KCNSC).
“For more than a decade, the defendant exchanged his integrity and his employer’s trust for kickbacks from a dishonest contractor,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “To satisfy his greed, he corruptly steered contracts that were essential to ensuring the integrity of the nation’s nuclear weapons. Yesterday’s sentence reaffirms the Criminal Division’s commitment to rooting out fraud and corruption related to the procurement and manufacture of critically important products and services for the federal government and, ultimately, for United States taxpayers and to holding those accountable who commit these acts.”
“The Department of Energy Office of Inspector General (DOE-OIG) is committed to ensuring the integrity of Departmental contracts and programs,” said Department of Energy Assistant Inspector General for Investigations Lewe Sessions. “We take allegations of fraud and kickbacks very seriously and will aggressively investigate these matters to ensure integrity throughout DOE programs. We appreciate the efforts of the DOJ in pursuing these allegations and will continue our collaboration with the DOJ to investigative those engaged in fraud or corruption in Department programs.”
According to court documents and evidence presented at trial, Michael Clinesmith, 70, of Overland Park, Kansas, solicited and received kickbacks and bribes from Richard Mueller, 65, of St. Charles, Missouri, in exchange for steering subcontracts from Clinesmith’s employer to Mueller’s company (Subcontractor 1). Clinesmith, a long-tenured employee of a major engineering firm (Company 1) working at the KCNSC, was responsible for designing and procuring gages that were specially designed and manufactured to measure the components of nuclear weapons.
Mueller paid Clinesmith over $1 million for surreptitiously performing some or all of the work and, in exchange, Clinesmith used his position and authority at Company 1 to steer gage subcontracts to Subcontractor 1. Clinesmith told Mueller how much money he wanted to perform work under the gage subcontracts, and Subcontractor 1 included those amounts in its bids to Company 1. Clinesmith then approved those bids and told his employer, Company 1, that those bids were fair and reasonable without disclosing that, in exchange for the subcontracts, Mueller would secretly funnel to Clinesmith money awarded to Subcontractor 1. In addition, Clinesmith provided Mueller with insider information, like Company 1’s budget for the gage subcontracts, that Subcontractor 1 used to its advantage when bidding on the subcontracts. In total, Clinesmith accepted over $1.2 million in kickbacks over the course of approximately 15 years.
In October 2025, Clinesmith was convicted of one count of conspiracy to commit wire fraud and honest services wire fraud and four counts of wire fraud and honest services wire fraud.
The DOE-OIG investigated the case.
Trial Attorneys Andrew Jaco and Shy Jackson of the Criminal Division’s Fraud Section prosecuted the case.