INSIDE THE STATE DEPARTMENT’S $650,000 EMBEZZLEMENT SCANDAL
By Lucas Novak, Investigative Reporter
May 5, 2025
A Breach of Trust at Foggy Bottom
In a stunning case that has sent shockwaves through diplomatic circles, a veteran State Department budget analyst has admitted to orchestrating a sophisticated embezzlement scheme that siphoned more than $650,000 from government coffers over a two-year period. Levita Almuete Ferrer, a 64-year-old Maryland resident who served as a senior budget analyst in the department’s Office of the Chief of Protocol during the Biden administration, pleaded guilty to theft of government property, according to an announcement from the U.S. Attorney’s Office in Washington, D.C.
The case represents one of the most significant financial fraud scandals to hit the State Department in recent years and raises troubling questions about financial oversight within one of America’s most critical diplomatic institutions.
The Mechanics of a $657,347 Fraud
According to prosecutors, Ferrer exploited her signature authority over a State Department checking account between March 2022 and April 2024. During this period, she wrote 60 checks to herself and three additional checks to someone with whom she maintained a personal relationship. The checks, which Ferrer personally printed and signed, were then deposited into her personal bank accounts. The total amount embezzled reached a staggering $657,347.50.
What makes this case particularly concerning to security experts is not just the amount stolen, but the methodical nature of the fraud and how long it continued undetected. For perspective, the embezzled sum would be enough to fund the annual salaries of several entry-level foreign service officers or cover operational costs for a small consular office.
“Financial fraud cases of this magnitude usually involve multiple conspirators or at least some degree of internal collusion,” explains Margot Stevenson, a former Inspector General investigator who specialized in financial crimes at federal agencies. “The fact that one individual could divert this much money over an extended period raises serious questions about the department’s financial controls.”
A Digital Paper Trail: The QuickBooks Deception
The scheme’s sophistication becomes apparent when examining how Ferrer, who also goes by the name Levita Brezovic, attempted to conceal her actions. Prosecutors detailed how she utilized a QuickBooks account as part of her cover-up strategy. Ferrer would initially enter her own name as the payee in the system and print the checks accordingly. However, after printing and depositing the checks, she would return to the QuickBooks system and alter the payee information, replacing her name with that of a legitimate State Department vendor.
This digital sleight of hand created a significant obstacle for anyone reviewing the accounting records, as the system would show payments going to approved vendors rather than to Ferrer herself. The technique demonstrated a concerning level of awareness regarding the department’s auditing vulnerabilities.
Cybersecurity expert Rafael Moreno, who consults with government agencies on financial system security, notes that this type of fraud exploits the gap between digital and physical financial processes. “What we’re seeing here is a classic example of someone who understood both the technical accounting systems and the human element of financial oversight,” Moreno explains. “She essentially created a situation where the digital records would satisfy a standard review process, while physically directing the funds elsewhere.”
The Office of Protocol: A Prestigious Target
The setting of this fraud adds another layer of significance to the case. The Office of the Chief of Protocol is not a back-office operation but rather a highly visible and prestigious division within the State Department. This office coordinates visits from foreign dignitaries, oversees diplomatic accreditation, and manages the Blair House, the President’s official guesthouse for visiting heads of state.
As a senior budget analyst in this office, Ferrer occupied a position of substantial responsibility and trust. The office manages millions in funding related to diplomatic functions that directly impact America’s relationships with foreign governments.
“The Protocol Office represents the face of American diplomacy in many ways,” says Dianne Faulkner, a retired Foreign Service Officer who served in several diplomatic posts. “They’re responsible for creating the first impression for visiting officials and ensuring that proper diplomatic customs are observed. It’s concerning that financial oversight in such a critical office could be compromised to this extent.”
A Career Derailed: Who is Levita Ferrer?
Before pleading guilty to theft of government property, Ferrer had built a career as a budget specialist within the federal government. According to court records and professional profiles, the 64-year-old Maryland resident had risen to the position of senior budget analyst, a role that typically requires extensive experience and financial expertise.
While the court documents don’t specify Ferrer’s complete employment history, government budget analysts of her seniority typically possess decades of experience, often beginning in junior accounting or financial management positions before advancing to roles with greater authority and responsibility.
What motivated a career government employee to risk her professional standing, reputation, and freedom remains unclear. Financial pressure, personal circumstances, or a gradual erosion of ethical boundaries all represent possible factors that investigators may have considered. The court documents do not specify what Ferrer did with the embezzled funds, leaving open questions about whether the money funded a lavish lifestyle, addressed dire financial needs, or served some other purpose.
The Legal Consequences: What Happens Next?
Having entered her guilty plea on Wednesday, Ferrer now awaits sentencing, which is scheduled for September 18. The theft of government property charge carries serious potential consequences—she faces a maximum sentence of 10 years in federal prison.
However, sentencing guidelines for white-collar crimes often result in less than the maximum penalty, particularly for first-time offenders. Factors such as acceptance of responsibility (as demonstrated by the guilty plea), cooperation with authorities, and the defendant’s personal history will all influence the final sentence.
As part of her plea agreement, Ferrer has committed to repaying the full $657,347.50 to the U.S. government. Additionally, she is subject to a forfeiture money judgment for the same amount, which gives the government legal mechanisms to secure the restitution.
Legal experts suggest that such plea agreements often involve cooperation with ongoing investigations, raising the possibility that Ferrer may be providing information about broader financial vulnerabilities or other matters of interest to prosecutors.
“In cases involving government fraud, prosecutors are typically interested not just in punishing the individual but in understanding how the system failed,” notes Alexandra Pinsky, a former federal prosecutor who specialized in public corruption cases. “The information provided by defendants like Ferrer can be invaluable in closing loopholes and preventing future incidents.”
Systemic Failures: How Did This Happen?
The Ferrer case inevitably raises questions about oversight and financial controls at the State Department. How could a single employee write dozens of unauthorized checks totaling over $650,000 without triggering alarms?
Traditional financial safeguards in government typically include segregation of duties (where different individuals handle different parts of a transaction), regular audits, and oversight by supervisors and financial management teams. The ability of one person to control the entire check-writing and recording process suggests potential gaps in these controls.
“Government financial systems are designed with multiple layers of protection precisely to prevent this kind of fraud,” explains Raymond Turner, who previously served in the Office of the Inspector General at another federal agency. “When those protections fail, it’s usually due to a combination of factors: inadequate staffing, procedural shortcuts that become normalized over time, and overconfidence in trusted employees.”
The timing of the fraud—spanning from March 2022 to April 2024—covers periods of significant transition in government. Beginning during the Biden administration and continuing into the early months of Trump’s second term, the scheme may have benefited from the disruption and staff changes that typically accompany the handover of power between administrations.
A Pattern of Troubles: The Brussels Incident
This embezzlement scandal is not the only recent incident to raise concerns about oversight and conduct at the State Department. In early April 2025, a member of Secretary of State Marco Rubio’s security detail was arrested in Brussels after what sources described as erratic behavior at the prestigious Hotel Amigo. The Diplomatic Security Service (DSS) agent reportedly became confrontational when hotel staff refused to reopen the bar after hours, and the situation escalated to a physical altercation with local police.
The agent was eventually released following intervention by the U.S. Embassy in Brussels. Though Secretary Rubio stayed at the same hotel during a NATO leaders’ meeting later that week, he was not present during the incident.
Sources familiar with the DSS operations have suggested that work-related stress may have been a contributing factor. One source told the Washington Examiner that shift supervisors on Rubio’s detail face “an incomprehensible workload,” managing personnel responsibilities, scheduling, evaluations, and administrative tasks while also performing their security duties. These supervisors reportedly work “six to seven days a week,” creating conditions of significant strain.
A State Department spokesman acknowledged awareness of “allegations of an incident involving an employee in Brussels, Belgium, on March 31, 2025,” and indicated that the matter was under review, while declining to discuss specific personnel matters.
These separate incidents—the financial fraud in Washington and the security agent’s behavior in Brussels—both point to potential systemic issues within the department regarding oversight, workload management, and staff support.
The Diplomatic Impact: A Matter of Trust
Financial impropriety within the diplomatic corps carries implications beyond the immediate legal and administrative concerns. The State Department represents American interests abroad and promotes values including transparency, accountability, and good governance. Incidents of internal corruption can undermine this messaging and provide leverage for critics of U.S. foreign policy.
“There’s always a reputational risk when financial impropriety occurs within diplomatic institutions,” observes Caroline Westbrook, a professor of international relations specializing in diplomatic affairs. “When we advocate for anti-corruption measures in developing democracies, incidents like this can be pointed to as evidence of hypocrisy.”
The impact extends to operational matters as well. Financial integrity is essential for the effective execution of diplomatic missions, from maintaining embassies and consulates to funding diplomatic security, cultural exchange programs, and humanitarian initiatives. Any suggestion that financial controls are inadequate can erode congressional and public support for diplomatic funding.
Secretary Rubio’s State Department
The embezzlement case and the Brussels incident both present early challenges for Secretary of State Marco Rubio, who has quickly established himself as a key figure in the second Trump administration. Beyond leading the State Department, Rubio has been appointed to several additional roles, serving as interim national security adviser, acting administrator for USAID, and acting archivist for the National Archives and Records Administration.
This concentration of responsibilities reflects President Trump’s confidence in Rubio but also raises questions about management capacity and oversight. With Rubio stretching his attention across multiple critical roles, ensuring robust financial controls and addressing personnel issues within the State Department may require delegation to trusted deputies.
The Ferrer case, which began during the previous administration but continued into the current one, exemplifies the challenge of maintaining institutional oversight during transitions of power. It also underscores the importance of strong, career civil servants who maintain operational continuity across administrations.
Strengthening the System: Potential Reforms
In the wake of this scandal, experts suggest several measures that could strengthen financial controls at the State Department and other federal agencies:
- Enhanced separation of duties: Ensuring that no single individual has control over multiple key aspects of financial transactions, such as both authorizing payments and recording them in accounting systems.
- Automated fraud detection systems: Implementing advanced analytics that can flag unusual patterns of transactions, such as repeated payments to the same recipient or deviations from established vendor relationships.
- Surprise audits and rotational oversight: Supplementing regular audits with unannounced reviews and periodically rotating financial oversight responsibilities to prevent collusion or complacency.
- Whistleblower protections and anonymous reporting channels: Strengthening mechanisms for employees to safely report suspected impropriety without fear of retaliation.
- Digital transformation: Updating legacy financial systems with modernized platforms that include built-in security features and automated compliance checks.
“Government financial systems often lag behind the private sector in terms of security features and automation,” notes Maria Cardenas, a government technology consultant. “Investing in updated financial technology isn’t just about efficiency—it’s about creating systems where fraud is harder to commit and easier to detect.”
The Road to Recovery: Rebuilding Trust
As the legal process unfolds for Levita Ferrer and the State Department addresses the vulnerabilities that allowed her scheme to succeed, the broader challenge will be restoring confidence in the institution’s financial management.
“Trust is essential in government operations, particularly in diplomacy,” remarks Jonathan Harris, a former State Department official who now teaches public administration. “Rebuilding that trust requires not just punishing wrongdoing but demonstrating a genuine commitment to reform and transparency.”
The coming months will likely see increased scrutiny of State Department financial operations, both internally and from congressional oversight committees. How the department responds—whether with meaningful reforms or defensive minimization—will shape both its operational effectiveness and its institutional culture for years to come.
For now, as Ferrer awaits sentencing and the full details of her scheme continue to emerge, her case stands as a sobering reminder of the persistent challenges of ensuring integrity in public institutions—even those entrusted with representing America to the world.
Lucas Novak is an investigative reporter specializing in government accountability and public integrity issues. The views expressed in this article are solely those of the author and do not necessarily reflect the editorial position of this publication.
