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Probe: Smithsonian Official Misspent

Tuesday, April 15, 2008 7:41:32 AM

WASHINGTON (AP) - The head of the Smithsonian Latino Center resigned after an investigation found she abused her expense account to fund her extravagant use of spas, luxury hotels and frequent limousine rides, according to a report released by the institution.

Pilar O'Leary, 39, billed the nonprofit museum complex for "extravagant" and "lavish travel expenses," the Smithsonian Institution inspector general found. In one case, she charged the Smithsonian for a limo she took across the National Mall from one Smithsonian building to another, according to the report, which was released Monday.

O'Leary also solicited free tickets to events like the Latin Grammys and the Billboard Latin Music Awards and Conference, the report said.

"The investigation revealed that O'Leary has not always acted in the best interests of the Smithsonian," the report concluded. "Her conduct has violated the basic ethical rules of the Institution."

In an interview with investigators that was included in the report, O'Leary said she was never questioned by superiors about her travel expenses.

The report was released in response to a Freedom of Information Act request by The Washington Post.

O'Leary left the Smithsonian in February, and at the time the institution made no mention of the ethical violations.

In an email to the Washington Post, O'Leary denied any wrongdoing, saying her travel had been approved by supervisors and the tickets weren't gifts.

The report said O'Leary often refused to stay at hotels offering government rates, normally insisting on booking at a Ritz Carlton or Four Seasons. In one example from December 2006, she stayed at the Four Seasons in Los Angeles and charged $335 for expenses at a spa called Rikrak.

Her departure follows a year of upheaval at the Smithsonian, which depends on taxpayer funds for about 70 percent of its $1.1 billion budget. Former Smithsonian Secretary Lawrence Small, who hired O'Leary, was forced to step down in March 2007 amid an investigation of his spending. The use of limousines by Small and other top officials had drawn scrutiny in earlier inquiries.

Many of O'Leary's violations came after Small left the Smithsonian.

It was revealed in December that the former director of the National Museum of the American Indian spent more than $250,000 in Smithsonian funds on first-class travel over the past four years, including luxury airfare, hotels and limousines. After that episode, the Smithsonian said a review of travel expenditures by museum directors and other officials found no other violations.

O'Leary was the Smithsonian's key representative on Latino affairs since 2005, coordinating exhibits and programs related to Latino history and culture.

In statements attached to the report, O'Leary said she relied on authorizations from former Deputy Secretary Sheila Burke for her expenses and was never questioned.

The investigation was referred to the U.S. Attorney's office, which declined to prosecute O'Leary. She has reimbursed the Smithsonian $2,066 for expenses incurred during a trip to Spain, Smithsonian spokeswoman Linda St. Thomas said. O'Leary also returned hotel reimbursements for a trip to Miami and for charges that covered the cost of moving outdoor furniture to her home.


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