Defense Contractor President Sentenced To 48 Months In Bribery Scheme

The U.S. Justice Department released the information below:

SAN DIEGO – Philip Flores, the owner, president, and chief executive of Intellipeak Solutions, Inc., a former defense contractor based out of Fredericksburg, Virginia, was sentenced in federal court today to 48 months’ custody, after admitting that he participated in a bribery scheme with former Naval Information Warfare Center employee James Soriano.

In announcing the sentence, U.S. District Judge Todd W. Robinson explained that the “fraud was pervasive” and “it is hard to understate in terms of this area of business practice any offense conduct which would be of a more serious nature – it goes to heart of the fairness of the contracting system.”

U.S. District Judge Todd W. Robinson also ordered Flores to pay $80,500 in restitution to three victims of the offense.

According to his plea agreement, Flores gave various things of value to Soriano, including expensive meals at restaurants in San Diego and Washington, D.C., field level tickets and parking passes to Game 5 of the 2018 World Series in Los Angeles, and tickets to the 2019 Super Bowl in Atlanta, Georgia. The cost of tickets to these premier sporting events totaled over $18,000.

In return, Soriano used his position as a contracting officer’s representative at the Naval Information Warfare Center to ensure that Intellipeak was awarded numerous no-bid contracts through the Small Business Administration’s 8(a) program. Soriano secured the contracts by falsifying technical evaluations, providing high ratings to Intellipeak to do the contracted work, and approving Intellipeak’s invoices on the awarded contracts, despite knowing that Intellipeak was not doing the work but instead subcontracting out all or most of the work to non-8(a) companies in violation of the SBA 8(a) rules.

Soriano also exploited competitive contracting through the SBA 8(a) program to benefit Intellipeak over other contractors. For example, Soriano secretly allowed Flores to draft contract discriminators to ensure that Intellipeak was selected as a winning bidder on a competitive contract. Soriano also allowed Flores to secretly draft procurement documents for an $87 million competitive contract and then performed multiple steps to attempt to award the contract to Intellipeak even though its bid was $7 million higher than another contractor.

According to his plea agreement, Flores also exploited Intellipeak’s 8(a) small business status by marketing Intellipeak to other defense contractors, who were not part of the 8(a) program, as a way for those companies to get access to 8(a) sole source contracts, generally in exchange for “pass through” fee that was equal to 6 to 8 percent of the contract value. Flores charged his 6 to 8 percent fee to the government, which Soriano approved, even though both knew that Intellipeak was not doing the work on the contracts and the fee did not reflect performed work.

According to his plea agreement, as a result of the conspiracy, the government paid Intellipeak more than $16 million to perform work on approximately 26 government contracts and task orders. The profit Intellipeak made from these contracts and task orders was conservatively estimated to be between $550,000 and $1.5 million despite performing little to no work on them.

According to the United States’ sentencing memorandum, this was not the first time that Flores and Intellipeak defrauded the government. Years before the bribery conspiracy, Flores engaged in a separate scheme to draft procurement documents and use sham quotes to ensure Intellipeak would be awarded millions of dollars of contracts through the SBA 8(a) program. Once obtained, Flores subcontracted the work to other companies in exchange for a fee. In 2022, Flores was indicted in the Northern District of Georgia with one count of conspiracy and two counts of major fraud against the United States. Flores went to trial and was found guilty of all charges. Flores was sentenced to four months in custody and allowed to remain on bond pending the resolution of his appeal.

“The integrity of the procurement process is not for sale,” said U.S. Attorney Adam Gordon. “Those who trade bribes for government contracts undermine our warfighters and betray the American taxpayer—and they will be held accountable.”

"The successful prosecution of Mr. Flores underscores the serious consequences for undermining the integrity of the Department of Defense’s procurement process. This outcome serves as a significant deterrent to any individual who would exploit their position for personal financial gain at the expense of U.S. taxpayers," said John E. Helsing, Special Agent in Charge for the DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS remains committed to working with the United States Attorney’s Office and our law enforcement partners to root out public corruption within the DoD.”

"The integrity of our defense acquisitions is built on fairness and transparency, but Mr. Flores’ illicit bribery scheme eroded that foundation and betrayed the public's trust,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS remains steadfast in protecting the Department of the Navy procurement process by holding wrongdoers accountable and ensuring taxpayer dollars are spent in accordance with the law.”

“Today’s sentence sends a clear message: Anyone who exploits a position of trust to fuel personal greed will be found and held accountable,” said Marcus Sykes, Special Agent in Charge of the U.S. Department of Health and Human Services,  Office of Inspector General (HHS-OIG). “Funneling money into bribery schemes instead of delivering promised services undermines the integrity of federal programs. HHS-OIG will continue collaborating with our law enforcement partners to pursue justice against those who defraud the American people.”

"This sentencing shows what happens when someone abuses the system for personal gain. Philip Flores cheated taxpayers and hurt fair competition for government contracts,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation (IRS-CI), Los Angeles Field Office. “IRS Criminal Investigation remains steadfast in working with our law enforcement partners to follow the money, expose corruption, and ensure that those who exploit positions of trust are held fully accountable."

“Fraud and bribery have no place in SBA programs. SBA-OIG is committed to protecting the integrity of the 8(a) program and ensuring these opportunities benefit eligible small businesses,” said SBA Inspector General William Kirk. “We will continue partnering with DOJ and law enforcement to pursue accountability and safeguard taxpayer funds.”

“The 8(a) Program is designed for legitimate small businesses in federal contracting – not as a vehicle for DEI, bribery, or political agendas,” said SBA Administrator Kelly Loeffler. “SBA is grateful to our law enforcement partners for their work to stop fraud and put criminals behind bars. We will continue to audit participants and investigate the 8(a) Program, while implementing oversight and accountability on behalf of America’s taxpayers and job creators.”

This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Swan and Carling E. Donovan.

DEFENDANT                                    Case Number 23-cr-2282-TWR-2                          

Philip Flores                                       Age: 53                                   Nashville, TN

SUMMARY OF CHARGES

Conspiracy to Commit Bribery - Title 18, U.S.C., Section 371

Maximum penalty: Five years in prison; a maximum $250,000 fine or twice the gross gain or loss resulting from the offense, whichever is greatest.

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Small Business Administration – Office of Inspector General

Internal Revenue Service Criminal Investigation

Department of Health and Human Services – Office of Inspector General

If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098 

Retired U.S. Navy Admiral Sentenced To Six Years In Bribery Scheme

The U.S. Justice Department released the information below:

WASHINGTON – Admiral Robert P. Burke (USN-Ret.), 62, of Coconut Creek, Florida, was sentenced today in U.S. District Court to 72 months in prison in connection with accepting future employment at a government vendor in exchange for awarding that company a government contract, announced U.S. Attorney Jeanine Ferris Pirro. 

Following a five-day trial, a federal jury found Burke guilty on May 19 of conspiracy to commit bribery, bribery, performing acts affecting a personal financial interest, and concealing material facts from the United States. In addition to the six-year prison term, U.S. District Court Judge Trevor N. McFadden ordered Burke to serve three years of supervised release,  to pay $322,850 in restitution, and to pay $86,748.08 in forfeiture.

 Joining in the announcement were Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office, Special Agent in Charge Stanley A. Newell of the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS) Transnational Operations Field Office, and Assistant Director in Charge Reid Davis of the FBI Washington Field Office Criminal Division.   

“Integrity — not cash — is the currency of public service. Admiral Burke rose to the pinnacle of the U.S. Navy, entrusted with leadership and honor. But instead of leading by example, he cashed in that trust — turning four stars into dollar signs and trading duty for a corporate payday,” said U.S. Attorney Pirro. “Today’s sentence sends a clear message: if you sell your honor and trade your influence, you’ll pay the price — in prison time.”

“No individual, regardless of rank or prior service, is above the law,” said Special Agent in Charge Newell of the DCIS.  “The actions uncovered in this investigation represent a serious breach of the public trust and dishonor the values of integrity and accountability that military service demands.  DCIS remains committed to ensuring that corruption of this nature is met with consequences.”

 “Any individual involved in corrupting Department of the Navy acquisitions will be held accountable, regardless of rank or position,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS remains steadfast in bringing those to justice who commit crimes that erode public trust in the Department of the Navy’s procurement process.”

"When Burke awarded a contract to Kim and Messenger's company in exchange for future employment, he put himself ahead of thousands of civilian and military personnel serving under his command," said Reid Davis, Special Agent in Charge of the FBI Washington Field Office's Criminal Division. "As today's sentencing demonstrates, the FBI remains committed to bringing government officials — even four-star admirals — to justice when they abuse their positions of power for personal gain."

According to court documents and as the evidence proved at trial, from 2020 to 2022, Burke was a four-star Admiral who oversaw U.S. naval operations in Europe, Russia, and most of Africa, and commanded thousands of civilian and military personnel. 

Burke’s co-defendants, Yongchul “Charlie” Kim  and Meghan Messenger, were the co-CEOs of a company (Company A) and provided a workforce training pilot program to a small component of the Navy from August 2018 through July 2019. The Navy terminated that contract with Company A in late 2019 and directed Company A not to contact Burke directly about contracting actions. 

Despite the Navy’s instructions, the co-defendants met with Burke in Washington, D.C., in July 2021, to reestablish Company A’s business relationship with the Navy. At the meeting, the co-defendants agreed that Burke would use his position as a Navy Admiral to steer a contract to Company A in exchange for future employment at the company. They further agreed that Burke would later use his official position to influence other Navy officers to award another contract to Company A to train a large portion of the Navy with a value one of the co-defendants allegedly estimated to be in the “triple digit millions.” 

In December 2021, Burke ordered his staff to award a $355,000 contract to Company A to train personnel under Burke’s command in Italy and Spain. Company A performed the training in January 2022. Thereafter, Burke promoted Company A in a failed effort to convince another senior Navy Admiral to award another contract to Company A. To conceal the scheme, Burke made several false and misleading statements to the Navy, including by falsely implying that Company A’s employment discussions with Burke only began months after the contract was awarded and omitting the truth on his required government ethics disclosure forms. 

In October 2022, Burke began working at Company A at a yearly starting salary of $500,000 and a grant of 100,000 stock options. 

This case was investigated by the Defense Criminal Investigative Service, Naval Criminal Investigative Service, and the FBI’s Washington Field Office. It is being prosecuted by Assistant U.S. Attorney Rebecca G. Ross for the District of Columbia and Trial Attorney Trevor Wilmot and former Trial Attorney Kathryn Fifield. It was investigated and indicted by Assistant U.S. Attorney Joshua Rothstein.

Active-Duty And Former U.S. Army Soldiers Arrested For Theft Of Government Property and Bribery Scheme

The U.S. Justice Department released the information below:

Jian Zhao, and Li Tian, active-duty U.S. Army soldiers stationed at Joint Base Lewis-McChord, along with Ruoyu Duan, a former U.S. Army soldier, were arrested today following indictments by federal grand juries in the District of Oregon and the Western District of Washington. Tian and Duan were charged in the District of Oregon for conspiring to commit bribery and theft of government property. Zhao was charged in the Western District of Washington for conspiring to obtain and transmit national defense information to an individual not authorized to receive it, and also for bribery and theft of government property.

“The defendants arrested today are accused of betraying our country, actively working to weaken America’s defense capabilities and empowering our adversaries in China,” said Attorney General Pamela J. Bondi. “They will face swift, severe, and comprehensive justice.”

“While bribery and corruption have thrived under China’s Communist Party, this behavior cannot be tolerated with our service members who are entrusted with sensitive military information, including national defense information,” said FBI Director Kash Patel. “The FBI and our partners will continue to work to uncover attempts by those in China to steal sensitive U.S. military information and hold all accountable who play a role in betraying our national defense. The FBI would like to thank U.S. Army Counterintelligence for their close partnership during this investigation.”

“We thank the FBI and U.S. Army Counterintelligence Command for their hard work on this investigation and commitment to protecting our national security,” said Acting U.S. Attorney William M. Narus for the District of Oregon.

“These arrests underscore the persistent and increasing foreign intelligence threat facing our Army and nation,” said Brig. Gen. Rhett R. Cox, Commanding General, Army Counterintelligence Command. “Along with the Department of Justice and FBI, Army Counterintelligence Command will continue to work tirelessly to hold those accountable who irresponsibly and selfishly abandon the Army values and choose personal gain over duty to our nation. We remind all members of the Army team to increase their vigilance and protect our Army by reporting suspicious activity.”

The indictment in the District of Oregon alleges that beginning on or about Nov. 28, 2021, and continuing to at least on or about Dec. 19, 2024, Duan and Tian along with others, known and unknown to the grand jury conspired with each other to surreptitiously gather sensitive military information related to the United States Army’s operational capabilities, including technical manuals and other sensitive information, and that Tian transmitted this information to Duan in return for money, in violation of his official duties as an active-duty U.S. Army officer. Specifically, Tian was tasked with gathering information related U.S. military weapon systems, including information related to the Bradley and Stryker U.S. Army fighting vehicles, and transmitting them to Duan.

The indictment in the Western District of Washington alleges that beginning in or about July 2024, and continuing to the date of the arrest, Jian Zhao, an active-duty U.S. Army Supply Sergeant, conspired with others known and unknown to the grand jury to obtain and transmit national defense information to individuals based in China. Zhao is further alleged to have committed bribery and theft of government property.

Specifically, Zhao was charged for his conspiracy to collect and transmit several classified hard drives, including hard drives marked “SECRET” and “TOP SECRET”, negotiating with individuals based in China for their sale, and agreeing to send the classified hard drives to the individuals in China. In exchange for the sale of the classified hard drives, Zhao received at least $10,000. Zhao is further alleged to have conspired to sell an encryption capable computer that was stolen from the U.S. Government, and sensitive U.S. military documents and information, including information related to the High Mobility Artillery Rocket System (HIMARS), and information related to U.S. military readiness in the event of a conflict with the People’s Republic of China. Zhao is alleged to have violated his duties as a U.S. Army Soldier and public official to protect sensitive military information in exchange for money. In total, Zhao is alleged to have corruptly received and accepted payments totaling at least $15,000.

The FBI and the U.S. Army Counterintelligence Command investigated the case.

Assistant U.S. Attorneys Geoffrey Barrow and Katherine Rykken for the District of Oregon and Trial Attorneys Christopher Cook and Yifei Zheng of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

Retired Navy Admiral And Business Executives Arrested for Bribery Scheme

 The U.S. Justice Department released the below information:

A retired Navy Admiral and two business executives were arrested today on criminal charges related to their roles in a bribery scheme that involved a U.S. government contract.

As alleged in an indictment unsealed today, from 2020 to 2022, Robert Burke, 62, of Coconut Creek, Florida, was a four-star Admiral who oversaw Naval operations in Europe, Russia, and most of Africa, and commanded thousands of civilian and military personnel. Yongchul “Charlie” Kim and Meghan Messenger, both of New York, are the co-CEOs of a company (Company A) that provided a workforce training pilot program to a small component of the Navy from August 2018 through July 2019. The Navy terminated a contract with Company A in late 2019 and directed Company A not to contact Burke.

Despite the Navy’s instructions, Kim and Messenger then allegedly met with Burke in Washington, D.C., in July 2021 in an effort to reestablish Company A’s business relationship with the Navy. At the meeting, the charged defendants allegedly agreed that Burke would use his position as a Navy Admiral to steer a sole-source contract to Company A in exchange for future employment at the company. They allegedly further agreed that Burke would use his official position to influence other Navy officers to award another contract to Company A to train a large portion of the Navy with a value Kim allegedly estimated to be “triple digit millions.” 

In furtherance of the conspiracy, in December 2021, Burke allegedly ordered his staff to award a $355,000 contract to Company A to train personnel under Burke’s command in Italy and Spain. Company A performed the training in January 2022. Thereafter, Burke allegedly promoted Company A in a failed effort to convince a senior Navy Admiral to award another contract to Company A. To conceal the scheme, Burke allegedly made several false and misleading statements to the Navy, including by creating the false appearance that Burke played no role in issuing the contract and falsely implying that Company A’s employment discussions with Burke only began months after the contract was awarded. 

In October 2022, Burke began working at Company A at a yearly starting salary of $500,000 and a grant of 100,000 stock options. 

Burke, Kim, and Messenger are each charged with conspiracy to commit bribery and bribery. Burke is also charged with performing acts affecting a personal financial interest and concealing material facts from the United States. If convicted, Burke faces a maximum penalty of 30 years in prison, and Kim and Messenger each face a maximum penalty of 20 years in prison.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Matthew M. Graves for the District of Columbia; Deputy Director of Investigative Operations Grant A. Fleming of the Defense Criminal Investigative Service (DCIS); Special Agent in Charge Stanley A. Newell of the DCIS Transnational Operations Field Office; Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office; and Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division made the announcement.

DCIS, NCIS, and the FBI are investigating the case.

Trial Attorneys Trevor Wilmot and Kathryn E. Fifield of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Joshua Rothstein for the District of Columbia are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Former Navy Civilian Employee And Former Executive Indicted In Bribery Scheme Involving Over $100 Million In Government Contracts

The U.S. Attorney’s Office, Southern District of California, released the below information on March 7^th:

SAN DIEGO – A former civilian employee of San Diego-based Naval Information Warfare Center and a former executive with a South Carolina defense contractor were charged in an indictment unsealed today with participating in a bribery scheme to trade expensive meals, jobs and a ticket to a premiere sporting event for help obtaining more than $100 million in government contracts.

According to the indictment, James Soriano, of Las Vegas, Nevada, worked for the Naval Information Warfare Center, which provided contract administration services for the Navy. From 2006 to 2019, Soriano was an engineer, project leader and certified “Contracting Officer Representative” with technological expertise to help manage Department of Defense contracts. Soriano was supposed to act as liaison between the government and the contractor, including keeping contractor bid, proposal and selection information confidential, and protecting the integrity of the acquisition process by maintaining fairness in the government’s treatment of all bidders.

According to the indictment, Soriano instead used his considerable influence to steer lucrative contracts to Russell Thurston of Mt. Pleasant, South Carolina, who was an executive vice president of a company vying for defense contracts with locations in Arlington, Virginia, and Charleston, South Carolina. The company provided technical and consulting services in the information technology field.

The indictment said Thurston, and others working under him, gave Soriano various things of value including jobs for a family member and friends, free meals at various restaurants, as well as a ticket to the 2018 MLB All Star Game held at Nationals Park in Washington, D.C. One of the friends who was given a job at Soriano’s request gave Soriano half her salary every month—approximately $2,000 per month—in cash. The indictment indicates the friend was not actually performing the duties for which she was being paid.

In return, Soriano took official action to benefit the company, including allowing Thurston and other employees to draft procurement documents for various contracting efforts, even where the company was competing for the contract against other bidders. As a result of Soriano’s efforts, the company won a task order with a more than $300 million ceiling. Soriano then approved numerous projects on this task order, ultimately causing the government to obligate more than $100 million to the company. 

To conceal their activities, Thurston, Soriano, and other employees at the company would intentionally delete document properties on procurement documents drafted by  employees. Soriano also failed to disclose the gifts on his yearly required OGE Form 450. 

“This indictment reveals callous greed at the cost of taxpayer dollars,” said U.S. Attorney Tara McGrath. “This office will vigorously investigate and prosecute fraud that threatens public trust in our institutions.”

“The indictment of James Soriano and Russell Thurston should be a deterrent for individuals and companies contemplating or attempting to misuse positions of public trust in order to enrich themselves financially or ensure future lucrative contracts,” said Bryan D. Denny, Special Agent-in-Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Western Field Office.  “The alleged actions subvert the integrity of the government’s acquisition process, waste taxpayers’ money, and ultimately degrade the readiness of America’s warfighters.”

“The DoD contracting process ensures our taxpayer dollars are spent appropriately to equip our warfighters with the tools necessary to fight and win in an ever-increasingly complex environment.  Attempts to undermine that process ultimately put our warfighters at risk,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation. “This most recent indictment against Mr. Soriano and Mr. Thurston is demonstrative of IRS Criminal Investigation’s relentless commitment to supporting national security through partnering on corruption investigations while continuing to pursue those who intentionally evade paying their fair share in taxes, whether their income is legally or illegally obtained.”

“Using a position of public trust as a means to fraudulently grant access to federal programs for personal gain will not be tolerated,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”

Soriano is also charged with three counts of filing false tax returns as result of failing to declare the cash that he was receiving from his friend as income.

DEFENDANTS                                 Case Number 24cr0341-TWR

James Soriano                                     Age: 63                                   Las Vegas, NV

Russell Thurston                                 Age: 51                                   Mt. Pleasant, SC

SUMMARY OF CHARGES

Conspiracy to Commit Bribery - Title 18, U.S.C., Section 371

Maximum penalty: Five years in prison; $250,000 fine

Bribery – Title 18, U.S.C., Section 201

Maximum penalty: Fifteen years in prison; $250,000 fine for an individual or $500,000 for an organization, or three times the monetary equivalent of the thing of value, whichever is greater.

Fraud and False Statement in Tax Return – Title 26, U.S.C., Section 7206(1)

Maximum penalty: Three years in prison; $100,000 fine

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Small Business Administration – Office of Inspector General

IRS Criminal Investigation

Department of Health and Human Services – Office of Inspector General

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098.

Former Vice President of Government Contracting Company Pleads Guilty to Conspiracy to Commit Bribery

The U.S. Justice Department released the below information yesterday:

A former vice president of a Chesapeake, Va., government contracting company pleaded guilty today to conspiracy to pay bribes to public officials in exchange for favorable treatment in connection with U.S. government contract work.

Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Acting U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) Atlantic Operations and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller in the Eastern District of Virginia.

 Adam C. White, 40, was charged by criminal information on March 28, 2014, with one count of conspiracy to bribe public officials.   White faces a maximum penalty of five years when he is sentenced on July 11, 2014.

According to a statement of facts filed with the plea agreement, White worked for a government contracting company that was created to support the U.S. Navy’s Military Sealift Command (MSC) on various telecommunication projects.   For several years, White and his business partners paid bribes to MSC public officials in exchange for favorable treatment in awarding MSC-related government contract work.

White admitted that he contributed a portion of his paycheck to the bribe payments by regularly withdrawing approximately $1,000 in cash from his personal bank account after receiving his bi-weekly paycheck and providing it to his business partners.   Together, White and his business partners paid approximately $3,000 to $4,000 a month in cash bribes to two MSC public officials.   In his statement of facts, White also admits that he was aware his business partners provided other things of value, including flat-screen televisions, to influence the official actions of a MSC public official.

As a condition of the plea agreement, White has agreed to forfeit $57,000 as the proceeds of the offense.

In December 2013, White resigned from his position as vice president of the government contracting company.

Prior to entry of this guilty plea, four other individuals pleaded guilty in connection with the same bribery scheme.   On Feb. 12, 2014, Kenny E. Toy, the former afloat programs manager for the MSC N6 Command, Control, Communication and Computer Systems Directorate, pleaded guilty to bribery and admitted receiving more than $100,000 in cash bribes.   On Feb. 18, 2014, Dwayne A. Hardman, one of White’s business partners, pleaded guilty to bribery and admitted to providing more than $140,000 in cash bribes to Toy and another MSC public official.   On Feb. 19, 2014, Michael P. McPhail pleaded guilty to conspiracy to commit bribery and agreed to forfeit $57,000.   On March 5, 2014, Roderic J. Smith, another of White’s business partners, pleaded guilty to conspiracy and agreed to forfeit $175,000.

The case was investigated by the FBI, DCIS and NCIS.   The case is being prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant United States Attorney Stephen W. Haynie of the U.S. Attorney’s Office for the Eastern District of Virginia.