Nevada's head of cyber-security charged with embezzlement

The former chief of security for Nevada's Department of Information Technology has been formally charged with theft, embezzlement and falsifying records.

The investigation of Randy Potts began after he filed claims seeking $1,757 in reimbursement for expenses incurred attending a homeland security conference on cyber-security issues in Denver.

The problem was there was no such conference on the dates he went to Colorado.

When questioned about the expenses, he submitted a two-page memo to DOIT Director Terry Savage citing his attendance at the Colorado Information Management Commission and meetings with Colorado's Chief Information Security Officer.

But the memo didn't mention anything about the homeland security meeting he used to justify the trip in the first place.

Fiscal managers in DOIT refused to authorize payment for the trip and the department notified the Nevada Attorney General's Office.

The criminal complaint issued Thursday states Potts submitted a request to attend the third annual meeting of the Multi-State Information Sharing and Analysis Center in Denver from Nov. 29-Dec. 2, 2005. Based on his explanation of the agenda for that meeting, accompanied by a flier announcing it, DOIT Director Terry Savage approved the trip.

But according to the criminal complaint, Potts didn't attend that meeting because it actually occurred in April 2005. Potts, the complaint charges, falsified information in his request to attend the conference and changed the date on the flier submitted to DOIT to match.

He faces felony charges of theft, embezzlement, attempted unlawful use of public money and altering, falsifying or defacing records.

The money approved to pay for the trip came from federal homeland security grant money designated for use only on homeland security awareness training.

Potts has worked for DOIT for about three years and, according to Savage, has done an excellent job of improving cyber-security for Nevada state agencies.

Savage said he will be talking with the attorney general's office about what his course of action should be.

Personnel officials say it is up to the department head and the circumstances involved whether action is taken to terminate an employee charged with such a crime or wait until the criminal case is resolved.

"I hope to resolve that issue next week," said Savage.

Potts has been on administrative leave since the formal investigation began in March.

Investigators were unable to serve the warrant on Potts on Friday, but they expected him to turn himself in once he is aware of the criminal complaint.

• Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.