Robert Whitely

Robert Whitely was the DOJ's auditor on the Inslaw contract. He played a role in the events surrounding the advance payments dispute and the DOJ's demand for a copy of PROMIS.

In November 1982, Whitely informed Peter Videnieks, the contracting officer, that based on his review of Inslaw's financial statements and discussions with Inslaw's accountants, he believed INSLAW was insolvent. This information contributed to Videnieks' decision to terminate the advance payments provision of the contract. Whitely testified that after reviewing Inslaw's financial statements and meeting with their accountants, he expressed his view that Inslaw was either insolvent or nearly so. The Special Counsel's investigation found that Whitely's testimony was credible and that the evidence supported the DOJ's claim that its employees were genuinely concerned about Inslaw's financial health.

The report noted that Bankruptcy Judge Bason had dismissed Whitely's testimony as "manufactured solely for use at trial," but the Special Counsel found this assertion to be incorrect, citing Whitely's work papers and deposition testimony as evidence of his consistent concerns about Inslaw's financial viability. The investigation concluded that the DOJ's demand for a copy of PROMIS was made in good faith due to concerns about Inslaw's potential failure, which would leave the government vulnerable.¹