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. 

Maryland Man Charged With Removal Of Classified Materials And Theft of Government Property

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

A criminal complaint has been filed charging Harold Thomas Martin III, 51, of Glen Burnie, Maryland, with theft of government property and unauthorized removal and retention of classified materials by a government employee or contractor.   

Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Rod J. Rosenstein for the District of Maryland and Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office made the announcement today.

According to the affidavit filed in support of the criminal complaint, Martin was a contractor with the federal government and had a top secret national security clearance. Martin was arrested late on Aug. 27, 2016. The complaint was filed on Aug. 29, 2016 and unsealed today.

On Aug. 27, 2016, search warrants were executed at Martin’s residence in Glen Burnie, Maryland, including two storage sheds, as well as upon his vehicle and person. During execution of the warrants, investigators located hard-copy documents and digital information stored on various devices and removable digital media. A large percentage of the materials recovered from Martin’s residence and vehicle bore markings indicating that they were property of the U.S. government and contained highly classified information, including Top Secret and Sensitive Compartmented Information (SCI). In addition, investigators located property of the U.S. government with an aggregate value in excess of $1,000, which Martin allegedly stole.

The complaint alleges that among the classified documents found in the search were six classified documents obtained from sensitive intelligence and produced by a government agency in 2014. These documents were produced through sensitive government sources, methods and capabilities, which are critical to a wide variety of national security issues. The disclosure of the documents would reveal those sensitive sources, methods and capabilities.

The documents have been reviewed by a person designated as an original classification authority, and in each instance, the authority has determined that the documents are currently and properly classified as Top Secret, meaning that unauthorized disclosure reasonably could be expected to cause exceptionally grave damage to the national security of the U.S.

If convicted, Martin faces a maximum sentence of one year in prison for the unauthorized removal and retention of classified materials and ten years in prison for theft of government property. An initial appearance was held for Martin in U.S. District Court in Baltimore on Aug. 29, 2016. Martin remains detained.

A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings. 

Assistant Attorney General Carlin and U.S. Attorney Rosenstein commended the FBI for its work in the investigation and thanked the Maryland State Police for its assistance. Mr. Rosenstein and Mr. Carlin thanked Assistant U.S. Attorneys Zachary A. Myers and Harvey E. Eisenberg, and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section, who are prosecuting the case. 

Former Army Reserve Staff Sergeant Sentenced To 21 Months In Prison For Bulk Cash Smuggling And Theft Of Government Property While Serving In Afghanistan

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

A Fort Buchanan Army Reserve Staff Sergeant was sentenced today to 21 months in prison for bulk cash smuggling of $113,050 and theft of government property worth $6,302.69 while serving in Afghanistan. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico, Special Agent in Charge Douglas A. Leff of the FBI’s San Juan, Puerto Rico, Division, Acting Special Agent in Charge James M. Gibbons of the U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) Chicago Field Office, Special Inspector General for Afghanistan Reconstruction John F. Sopko, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit and Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office made the announcement.

On July 15, Luis Ramon Casellas, 42, of Canóvanas, Puerto Rico, pleaded guilty before U.S. Magistrate Judge Camille L. Velez-Rive of the District of Puerto Rico to three counts of bulk cash smuggling and one count of theft of government property.  In addition to imposing the prison term, U.S. District Judge Carmen Consuelo Cerezo of the District of Puerto Rico ordered Casellas to forfeit $113,050. 

Casellas was an Army Reservist Staff Sergeant on active status based at Fort Buchanan in Guaynabo, Puerto Rico.  In April 2013, Casellas was deployed by the Army to Kandahar Airfield in Afghanistan.  As part of his duties, Casellas was responsible for helping to break down smaller bases in preparation for the withdrawal of U.S. military forces from Afghanistan.  These duties included retrieving U.S. government property for future use and selling as scrap to Afghan contractors. 

Between June 17 and Aug. 9, 2013, Casellas was the leader of the three-person Army team that went to a Forward Operating Base (FOB) in Afghanistan to help break down that base.  In connection with his guilty plea, Casellas admitted that while this team was at the FOB, he stole tools and equipment, including laptops, belonging to the U.S. Department of Defense.  Casellas also admitted that, in July 2013, he sent approximately eight boxes from the FOB through the U.S. Postal Service addressed to his wife in Puerto Rico, and that the boxes contained some of the government property and undeclared U.S. currency totaling $50,500.  

In addition, in August 2013, Casellas sent two boxes from Kandahar Airfield through UPS, again addressed to his wife in Puerto Rico, that were marked as “gifts for family.”  In connection with his plea, Casellas admitted that, although he declared that the items inside the boxes were valued at $700 and $400, respectively, one box contained some of the stolen government property as well as $41,750 in U.S. currency, and the other box contained $20,800 in U.S. currency.  These boxes were intercepted by U.S. Customs in Louisville, Kentucky.

This case was investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI, ICE-HSI, Army CID and DCIS, with assistance from the Defense Contract Audit Agency.  This case was prosecuted by Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Julia M. Meconiates and Myriam Fernandez of the District of Puerto Rico.  

Two Contractors And One Former Civilian Employee Sentenced In Bribery Scheme At Georgia Military Base

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

A former civilian employee and a former contractor of the Marine Corps Logistics Base (MCLB) in Albany, Georgia, as well as one outside contractor were sentenced today to prison terms for bribery and fraud arising from their handling of military trucking contracts and theft of surplus military equipment.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia made the announcement.

Christopher Whitman, 48, of Sylvester, Georgia, co-owner of United Logistics, an Albany-based trucking company and freight transportation broker, was sentenced to 22 years in prison for his conviction of 43 counts of honest services wire fraud, five counts of bribery, five counts of obstructing justice and one count of theft of government property.  Shawn McCarty, 36, of Albany, Georgia, a former employee at the MCLB-Albany, was sentenced to 10 years in prison for his conviction of 15 counts of honest services wire fraud, one count of bribery and one count of obstructing justice.  Bradford Newell, 43, of Sylvester, a former contractor at the MCLB-Albany, was sentenced to five years in prison for his conviction of 13 counts of honest services wire fraud, one count of bribery, and one count of theft of government property.  All three were found guilty by a jury in the Middle District of Georgia on March 3, 2015, following a five-week trial.

In addition to imposing the prison terms, the court ordered each defendant to forfeit assets reflecting losses to the government attributable to the bribery and fraud schemes.  Whitman was ordered to forfeit $18,860,313.75; McCarty was ordered to forfeit $15,410,151.55; and Newell was ordered to forfeit $513,600.  Whitman was specifically ordered to surrender assets derived from the schemes, including more than 100 parcels of real property, several boats and vehicles, and rental income estimated to be worth more than $14 million.

According to the evidence presented at trial, between 2008 and 2012, Whitman paid more than $800,000 in bribes to three former officials of the Defense Logistics Agency (DLA) at the MCLB-Albany, including McCarty, to obtain commercial trucking contracts from the base.  The evidence showed that contracts included unnecessary costly provisions, such as expedited service, expensive trailers and exclusive use (i.e., a requirement that freight be shipped separately from other equipment).  Evidence presented at trial and in a post-trial forfeiture hearing established that Whitman’s company grossed more than $37 million, and resulted in government losses and an improper benefit to Whitman of more than $20 million.

The evidence further demonstrated that Whitman paid nearly $200,000 in bribes to Newell and the former inventory control manager of the Distribution Management Center at MCLB-Albany, both of whom used their official positions to help Whitman steal from the base more than $1 million in surplus military equipment, including bulldozers, cranes and front-end loaders.  According to the trial evidence, in exchange for the bribe payments, Newell and the inventory control manager removed the surplus items from Marine Corps inventory and arranged to have them transported off the base by Whitman’s company.  The evidence showed that, after having the equipment refurbished, Whitman sold it to private purchasers.  

Five other individuals have pleaded guilty to their roles in the corruption and fraud schemes.  In October 2013, Kelli Durham, the former manager of Whitman’s company, pleaded guilty to conspiracy to commit wire fraud, admitting to intentionally overbilling the United States for services the company did not perform, resulting in losses ranging from $7 million to $20 million.  In May 2013, Mitchell Potts and Jeffrey Philpot pleaded guilty to bribery for collectively accepting more than $700,000 in bribes from Whitman.  In February 2013, Shelby Janes pleaded guilty to bribery for receiving nearly $100,000 in bribes from Whitman.  These defendants have not yet been sentenced.  In February 2014, C.W. Smith, a Whitman associate who helped arrange the sale of the surplus military equipment Whitman stole from the base, pleaded guilty to theft of government property. 

The case was investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County, Georgia, District Attorney’s Office; Defense Criminal Investigative Service; DLA Office of the Inspector General; and the Department of Labor Office of the Inspector General.  The case is being prosecuted by Deputy Chief J.P. Cooney and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.  The forfeiture is being handled by Assistant Deputy Chief Darrin McCullough of the Asset Forfeiture and Money Laundering Section and the U.S. Attorney’s Office of the Middle District of Georgia.

Grandson Of Naval Historian Pleads Guilty To Stealing Historical Records Relating To His Grandfather And Is Sentenced

The U.S. Attorney's Office District of Maryland released the below information:

Baltimore, Maryland - Samuel Loring Morison, age 70, of Crofton, Maryland, pleaded guilty today to theft of government property, specifically, historical records related to his grandfather, Rear Admiral Samuel Eliot Morison.

U.S. District Judge William D. Quarles, Jr. also sentenced Morison today to two years’ probation with the conditions that: he not access any library or archives without the permission of his probation officer; and he cooperate with investigators and archivists in identifying any other government property in his possession.  In imposing the probationary sentence, Judge Quarles cited Morison’s failing health, his prior military service and his cooperation with investigators.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service (NCIS), Washington Field Office; and Acting Inspector General James Springs of the National Archives and Records Administration (NARA) - Office of Inspector General.      

“It's gratifying that NCIS could work with our law enforcement partners to identify and arrest the person responsible for these thefts , and thereby help preserve the illustrious history of the United States Navy,” said NCIS Special Agent in Charge Darrell Gilliard.

James Springs, NARA's Acting Inspector General, stated, “Thefts from our nation’s historical record are an affront to all citizens, regardless of where those records are housed.  I appreciate the hard work of the U.S. Attorney’s Office, NCIS, and NARA OIG to insure that this behavior will not be tolerated.”

According to his plea agreement, on April 12, 2014, Morison allegedly offered to sell records relating to Rear Admiral (RADM) Morison’s work during World War II to the owner of a bookstore, who subsequently agreed to take possession of the records, place them on consignment through his shop, and sell them using eBay. 

On May 12, 2014, special agents with the National Archives and Records Administration Office of Inspector General reviewed the historical records being offered for sale through eBay.  The special agents, assisted by the former curator of the Navy Archives determined that the records belonged to the Naval History and Heritage Command's Navy Archive, and were the property of the U.S. government.

On May 21, 2014, a search warrant was executed at Morison’s residence and approximately 34 boxes of government records and property stolen from the Navy Archives were seized. The investigation revealed that Morison was a part-time researcher at the Naval Historical Foundation from March 19, 2010, and had access to the records, known as the “Office Files of RADM Morison Papers.”  Morison was never given authority to remove the records from the Navy Archives.

Morison faces a maximum sentence of 10 years in prison for theft of government property. As part of his plea agreement, the government will ask the court to require that Morison be prohibited from visiting libraries and archives without prior approval from his probation officer.

United States Attorney Rod J. Rosenstein praised NCIS and the NARA Office of Inspector General for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorney James G. Warwick, who prosecuted the case.

Two Former Civilian Military Employees And One Military Contractor Convicted In Bribery Scheme At Georgia Military Base

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

Two former civilian employees at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, and one military contractor were convicted by a federal jury today of bribery and fraud charges related to military trucking contracts, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.

Christopher Whitman, 48, co-owner of United Logistics, an Albany-based trucking company and freight transportation broker, was convicted of 43 counts of honest services wire fraud, five counts of bribery, five counts of obstructing justice and one count of theft of government property.

Shawn McCarty, 36, of Albany, Georgia, a former employee at the MCLB-Albany, was convicted of 15 counts of honest services wire fraud, one count of bribery and one count of obstructing justice.  Bradford Newell, 43, of Sylvester, Georgia, also a former employee at the MCLB-Albany, was convicted of 13 counts of honest services wire fraud, one count of bribery and one count of theft of government property.

According to evidence presented at trial, Whitman paid more than $800,000 in bribes to three former officials of the Defense Logistics Agency (DLA) at the MCLB-Albany, including the head of the DLA Traffic Office and McCarty, to obtain commercial trucking business from the base. The transportation contracts were loaded with unnecessary premium-priced requirements, including expedited service, expensive trailers and exclusive use, which requires that freight be shipped separately from other equipment, even if that results in a truck not being filled to capacity.  As a result of these contracts, Whitman’s company grossed more than $37 million over less than four years.

The evidence further demonstrated that Whitman paid approximately $200,000 in bribes to the former inventory control manager of the Distribution Management Center at MCLB-Albany, Newell and others, who used their official positions to help Whitman steal more than $1 million in surplus equipment from the base, including bulldozers, cranes and front-end loaders.  In exchange for the bribes, Newell and the inventory control manager removed the surplus items from Marine Corps inventory and arranged to have them transported off the base by Whitman’s company.  Whitman then arranged to improve and paint the stolen equipment, and sell it to private purchasers.  

One former United Logistics employee, a business partner of Whitman’s, two former DLA officials and another MCLB official previously pleaded guilty for their roles in the fraud and corruption scheme.

The case was investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit, Defense Criminal Investigative Service, DLA Office of the Inspector General, and the Department of Labor Office of the Inspector General.  The case is being prosecuted by Deputy Chief J.P. Cooney and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.  The associated forfeiture litigation is being handled by Assistant Deputy Chief Darrin McCullough of the Asset Forfeiture and Money Laundering Section and the Middle District of Georgia.

Grandson Of Naval Historian Charged With Stealing Historical Records Relating To His Grandfather

The U.S. Attorney District of Maryland released the below information last week:

Baltimore, Maryland - A criminal complaint was filed late yesterday under seal charging Samuel L. Morison, age 69, of Crofton, Maryland, with theft of government property, specifically, historical records related to his grandfather, Rear Admiral Samuel Eliot Morison. Morison was arrested today.

The complaint was unsealed at his initial appearance held earlier today in U.S. District Court in Baltimore. Morison was released under the supervision of U.S. Pretrial Services. One of the conditions of his release is that he is prohibited from visiting libraries and archives without prior court approval.

The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Rocco Pierri of the Naval Criminal Investigative Service (NCIS), Washington Field Office; and Acting Inspector General James Springs of the National Archives and Records Administration (NARA) - Office of Inspector General.

According to the affidavit filed in support of the criminal complaint, on April 12, 2014, Morison allegedly offered to sell records relating to Rear Admiral (RADM) Morison’s work during World War II to the owner of a bookstore, who subsequently agreed to take possession of the records, place them on consignment through his shop and sell them using eBay.

 On May 12, 2014, special agents assigned to the Archival Recovery Team (ART) with the National Archives and Records Administration reviewed the historical records being offered for sale through eBay. The records were determined to belong to the Naval History and Heritage Command, Operation Archives Branch, Naval Historical Center (Navy Archives), and to be the property of the U.S. government.

The affidavit alleges that on May 21, 2014, a search warrant was executed at Morison’s residence and approximately 34 boxes of government records and property stolen from the Navy Archives were seized. The investigation revealed that Morison was a part-time researcher at the Navy Archives from March 19, 2010, and had access to the records, known as the “Office Files of RADM Morison Papers.”

 Morison was never given authority to remove the records from the Navy Archives.

Morison faces a maximum sentence of 10 years in prison for theft of government property.

A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.

United States Attorney Rod J. Rosenstein praised NCIS and NARA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James G. Warwick, who is prosecuting the case.

Note: You can read an earlier post on Morison via the below link:

http://www.pauldavisoncrime.com/2014/06/convicted-of-espionage-theft-of.html

Convicted Of Espionage & Theft Of Government Property And Then Pardoned By Clinton, Samuel Morison Is Now Accused of Stealing U.S. Navy Files of Famed Historian Grandfather

Ian Duncan at the Baltimore Sun reports on the arrest of Samuel L. Morison (seen in the above photo from his Facebook page) for the theft of U.S. Navy historical records.

A grandson of the Pulitzer Prize-winning historian Samuel Eliot Morison has been charged with stealing nearly three boxes of documents that his grandfather used to write a 15-volume history of World War II commissioned by President Franklin D. Roosevelt.

Authorities found some of the documents when they raided the Crofton home of Samuel L. Morison in May, according to federal charges unsealed Tuesday. Others had been put up for sale. They had been missing for more than a year.

Morison, 69, appeared briefly in court following his arrest Tuesday morning, according to the U.S. attorney's office. Morison's lawyer said the case is only in its very beginning stages.

... Morison was convicted in the 1980s on charges that he leaked classified satellite images of a Soviet aircraft carrier then under construction to a British magazine. He was pardoned by President Bill Clinton in 2001.

... Both Morison and his late grandfather served in the Navy. The younger Morison served in Vietnam. The elder Morison, a professor of history at Harvard and author of the two-volume "Oxford History of the United States," at the outbreak of World War II pitched the idea of writing a history of the conflict to Roosevelt, was commissioned a lieutenant commander in the Navy Reserve and sent to fight.

Samuel Eliot Morison was eventually promoted to rear admiral. He published his history of the war at sea between 1947 and 1962.

You can read the rest of the piece via the below link:

http://www.baltimoresun.com/news/maryland/crime/blog/bs-md-navy-document-theft-20140610,0,751933.story

You can read more about Samuel L. Morison in my Crime Beat column on the U.S. Navy's Cold War traitors and spies via the below link:

http://www.pauldavisoncrime.com/2010/07/us-navys-cold-war-spies-traitors.html