Criminal Division News

South Korean shipbuilder Samsung Heavy Industries Co. (SHI) has agreed to pay $75 million in penalties to avoid prosecution in the United States over its scheme to pay millions of dollars in bribes to Brazilian officials to win a contract.“Samsung Heavy Industries paid millions of dollars to a Brazilian intermediary, knowing that some of that money would be used to bribe high-level executives at Petrobras and obtain a lucrative shipbuilding contract,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s resolution is yet one more example of the Department’s continued commitment…

A retired U.S. Navy captain pleaded guilty to criminal conflict of interest charges and a former U.S. Navy master chief was sentenced to 17 months in prison today on corruption charges. The defendants are among the latest U.S. Navy officials to plead guilty and be sentenced in the expansive corruption and fraud investigation involving foreign defense contractor Leonard Glenn Francis and his Singapore-based ship husbanding company, Glenn Defense Marine Asia (GDMA).Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Adam L.

A former contractor at the Military Sealift Command (MSC) pleaded guilty for accepting bribes totaling approximately $2.8 million in the course of a bribery and fraud scheme that lasted more than a decade. Scott B. Miserendino, Sr. pleaded guilty before U.S. Magistrate Judge Lawrence R. Leonard of the Eastern District of Virginia to an indictment charging him with one count of conspiracy, one count of bribery and three counts of honest services mail fraud. Sentencing has been scheduled for May 8 before Chief District Court Judge Rebecca Beach Smith. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S.

A former owner of a government contracting company that serviced the Military Sealift Command (MSC) was sentenced to 60 months in prison, and to pay a $15,000 fine, for his participation in a bribery conspiracy from approximately 1999 to 2014, in which he provided a contracting official at MSC with almost $3 million in bribes. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia made the announcement. U.S. District Judge Arenda L. Wright Allen sentenced Joseph P. Allen, 56, of Panama City, Fla., following his guilty plea on April 19, to one count of conspiracy to commit bribery.

A Retired U.S. Navy Captain was sentenced in federal court today to 41 months in prison for his role in a massive bribery and fraud scheme involving foreign defense contractor Leonard Glenn Francis and his firm, Singapore-based, Glenn Defense Marine Asia (GDMA). Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Alana W. Robinson Southern District of California, Director Dermot O'Reilly of the Defense Criminal Investigative Service and Director Andrew Traver of the NCIS made the announcement. In addition to the 41-month prison sentence, U.S. District Judge Janis L. Sammartino ordered Michael Brooks, 59, of Fairfax Station, Virginia, to pay a $41,000 fine and $31,000 in restitution to the U.S. Navy.

Two former executives of a foreign defense contractor pleaded guilty in federal court today for participating in a conspiracy to submit bogus bids, claims and invoices to the U.S. Navy in an effort to steal tens of millions of dollars as part of a years-long corruption and fraud scheme. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Alana W. Robinson of the Southern District of California, Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS) and Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) made the announcement.

A former contractor at the Military Sealift Command (MSC) was indicted for his role in a bribery and fraud conspiracy from approximately 1999 to 2014, in which he allegedly received almost $3 million dollars in bribes. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia made the announcement. Scott B. Miserendino Sr., 58, formerly of Stafford, Va., was charged in a five-count indictment with one count of conspiracy to commit bribery and honest services mail fraud, one count of bribery and three counts of honest services mail fraud. Miserendino’s arraignment will be scheduled at a later date.

A former supervisory contracting officer was sentenced to 72 months in prison today for accepting bribe payments in exchange for steering U.S. Navy contracts to the president and chief executive officer of a defense contractor. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS) made the announcement. Paul Simpkins, 62, of Haymarket, Va., was sentenced by U.S. District Judge Janis L.

U.S. A lieutenant commander in the U.S. Navy pleaded guilty to bribery charges in federal court, admitting that he accepted cash, hotel expenses and the services of a prostitute in return for providing classified U.S. Navy ship schedules and other internal Navy information to an executive of a defense contracting firm. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Deputy Inspector General for Investigations James B. Burch of the Defense Criminal Investigative Service (DCIS), Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) and Director Anita Bales of the Defense Contract Audit Agency (DCAA) made the announcement.

Former senior federal contracting officer Paul Simpkins was arrested Tuesday for conspiracy to commit bribery in connection with his alleged role in a scheme to steer contracts and benefits to Glenn Defense Marine Asia (GDMA), a defense contracting firm headquartered in Singapore. Paul Simpkins, 60, of Haymarket, Virginia, is the latest individual to be arrested in connection with a corruption probe involving the U.S. Navy, GDMA, and its owner, Leonard Glenn Francis. “As alleged, Paul Simpkins misused his position as a contracting officer at the U.S. Navy to obtain bribes of cash, air travel, hotel rooms and prostitutes, and his actions tarnish the reputation earned by the vast majority of U.S. Navy officers and enlisted and civilian personnel,” said Assistant Attorney General Leslie R.

Second U.S. Navy Officer Indicted on Related Bribery Charges. A commander in the U.S. Navy pleaded guilty to federal bribery charges today, admitting that he provided a government contractor with classified ship schedules and other internal U.S. Navy information in exchange for cash, travel and entertainment expenses, as well as the services of prostitutes. A second U.S. Navy officer was also indicted today on related bribery charges by a federal grand jury in the Southern District of California. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) and Deputy Inspector General of Investigations James B.

Former Afloat Programs Manager at the United States Navy Military Sealift Command (MSC), Kenny E. Toy, was sentenced to 96 months in prison for receiving bribes, the U.S. Department of Justice said. Toy was sentenced by United States Chief Judge Rebecca Beach Smith of the Eastern District of Virginia Tuesday, July 29. Toy pleaded guilty on Feb. 12, 2014 to criminal information charging him with one count of bribery. According to Toy’s plea agreement, he was employed as the Afloat Programs Manager in the N6 Command…

Scott B. Miserendino, Sr., 55, a former government contractor who performed work for the United States Navy Military Sealift Command , and Timothy S. Miller, 57, a businessman whose company sought contracting business from the Military Sealift Command, were indicted today on charges including conspiracy and bribery. 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…

Kurt Mix, a former engineer for BP plc, was convicted today of intentionally destroying evidence requested by federal criminal authorities investigating the April 20, 2010, Deepwater Horizon disaster. Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Division made the announcement after the verdict was announced by U.S. District Judge Stanwood R. Duval Jr. Mix, 52…

Halliburton Pleads Guilty to Destruction of Evidence in Connection with Deepwater Horizon Disaster and Is Sentenced to Statutory Maximum Fine; Former Halliburton Manager Is Charged. Halliburton Energy Services Inc. (Halliburton) pleaded guilty today to destroying evidence pertaining to the 2010 Deepwater Horizon disaster and was sentenced to the statutory maximum fine, the Justice Department announced. In addition, a criminal information was filed today charging a former Halliburton manager, Anthony Badalamenti, 61, of Katy, Texas, with one count of destruction of evidence.

Halliburton Energy Services Inc. has agreed to plead guilty to destroying evidence in connection with the Deepwater Horizon disaster, the Department of Justice announced today. A criminal information charging Halliburton with one count of destruction of evidence was filed today in U.S. District Court in the Eastern District of Louisiana. Halliburton has signed a cooperation and guilty plea agreement with the government in which Halliburton has agreed to plead guilty and admit its criminal conduct. As part of the plea agreement, Halliburton has further agreed, subject to the court’s approval, to pay the maximum-available statutory fine, to be subject to three years of probation and to continue its cooperation in the government’s ongoing criminal investigation.

Transocean pleads guilty, sentenced to pay $400-million in penalties for criminal conduct leading to the disaster. Transocean Deepwater Inc. has pleaded guilty to a violation of the Clean Water Act (CWA) for its illegal conduct leading to the 2010 Deepwater Horizon disaster, and was sentenced to pay $400 million in criminal fines and penalties, Attorney General Holder announced. In total, the amount of fines and other criminal penalties imposed on Transocean are the second-largest environmental crime recovery in U.S. history – following the historic $4 billion criminal sentence imposed on BP Exploration and Production Inc. in connection with the same disaster.

BP Exploration and Production Inc. Agrees to Plead Guilty to Felony Manslaughter, Environmental Crimes and Obstruction of Congress Surrounding Deepwater Horizon Incident; BP Agrees to Pay a Record $4 Billion in Criminal Fines and Penalties Two Highest-Ranking BP Supervisors on Deepwater Horizon Oil Rig Charged with Manslaughter and Former Senior BP Executive Charged with Obstruction of Congress. BP Exploration and Production Inc. (BP) has agreed to plead guilty to felony manslaughter, environmental crimes and obstruction of Congress and pay a record $4 billion in criminal fines and penalties for its conduct leading to the 2010 Deepwater Horizon disaster that killed 11 people and caused the largest environmental disaster in U.S. history, Attorney General Eric Holder announced today.

President George W. Bush announced his intention to nominate Michael Chertoff, of New Jersey, to be Secretary of Homeland Security. He currently serves as a United States Circuit Judge for the Third Circuit Court of Appeals. Judge Chertoff previously served as Assistant Attorney General for the Criminal Division at the Department of Justice. As Assistant Attorney General, he helped trace the terrorist attacks to the al-Qaida network after September 11 and increased information sharing within the FBI. Prior to joining the Bush Administration, Judge Chertoff was a Partner in law firm of Latham & Watkins. From 1994 to 1996, he served as Special Counsel for the U.S. Senate Whitewater Committee. In 1990, Judge Chertoff was appointed by President George H.

Jim Letten, United States Attorney for the Eastern District of Louisiana, announced that TEAL MURDOCH GRUE, a river pilot and member of the New Orleans Baton Rouge Steamship Pilot's Association ("NOBRA") pled guilty to a Superseding Bill of Information charging him with making false material statements to the United States and misuse of a Federal Pilot's License. GRUE admitted he filed applications with attachments to the Regional Examination Center for the United States Coast Guard in New Orleans, La., in September, 1999 and again in March, 2000, which contained false material statements and entries regarding his personal and marine history with the United States Coast Guard in order to obtain a First Class Pilot's License.

Former BP Engineer Arrested for Obstruction of Justice in Connection with the Deepwater Horizon Criminal Investigation; First Criminal Charges to Result from the Deepwater Horizon Task Force Investigation. Kurt Mix, a former engineer for BP plc, was arrested today on charges of intentionally destroying evidence requested by federal criminal authorities investigating the April 20, 2010, Deepwater Horizon disaster, announced Attorney General Eric Holder, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S.

U.S. Department of Homeland Security Secretary Michael Chertoff, only the second to serve in this cabinet level post since the DHS was formed after 9/11, will address the American Association of Port Authorities’ (AAPA) annual Washington People’s Luncheon event on Tuesday, March 20, at the Willard Inter-Continental Hotel in downtown Washington, D.C. The topic: securing America’s seaports. Before being sworn in as DHS’s new chief, Sec. Chertoff served as a U.S. circuit judge for the Third Circuit Court of Appeals, and as Assistant Attorney General for the Criminal Division at the Department of Justice. In that post, he helped trace the 9/11 terrorist attacks to the al-Qaida network, and worked to increase information sharing within the FBI and with state and local officials.

Charles Paul Edward Jumet of Fluvanna County, Va., pleaded guilty on Nov. 13 in connection with his role in a conspiracy to pay bribes to Panamanian government officials to secure a maritime contract, announced Assistant Attorney General of the Criminal Division Lanny A. Breuer, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride, Joseph Persichini Jr., Assistant Director-in-Charge of the FBI's Washington Field Office, Jennifer Smith Love, Special Agent-in-Charge of the FBI's Richmond Field Office and James A. Dinkins, Special Agent-in-Charge of U.S. Immigration and Customs Enforcement's (ICE) Office of Investigation, Washington. Jumet, 53, pleaded guilty before U.S. Magistrate Judge Dennis W.