Defense Criminal Investigative Service News

14 Nov 2018

Former U.S. Navy Captain Pleads Guilty in Corruption, Fraud Probe

File Image: AdobeStock / © Renaschild

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.

26 Jan 2018

Former MSC Contractor Pleads Guilty to Bribery

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.

16 Aug 2017

HII to Pay $9.2 Mln in False Billing Settlement

File photo: Chris Oxley / HII

Huntington Ingalls Industries Inc. (HII) has agreed to a $9.2 million settlement of allegations that it violated the False Claims Act by knowingly overbilling the government for labor on U.S. Navy and Coast Guard ships at its shipyards in Pascagoula, Miss. Under the settlement, HII will make a payment of $7.9 million which, combined with earlier repayments, will result in the settlement recovery of approximately $9.2 million. “Contractors that knowingly bill the government in violation of contract terms will face serious consequences,” said Acting Assistant Attorney General Chad A.

01 Aug 2017

Former MSC Contractor Sentenced for Bribery Conspiracy

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.

20 Jun 2017

Former US Navy Attaché Sentenced for Taking Bribes

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.

11 May 2017

Foreign Defense Contractor Executives Guilty of Fraud

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.

08 May 2017

Former MSC Contractor Charged with Bribery, Fraud

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.

05 Dec 2016

Former US Navy Official Sentenced for Bribery

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.

30 Oct 2015

APL Antes Up in DoD False Claims Case

APL Ltd. to Pay $9.8 Million to Resolve Alleged False Claims Under the Department of Defense Shipping Contract. APL Limited has agreed to pay the government $9.8 million to resolve allegations that it violated the False Claims Act in connection with a contract to provide GPS tracking of shipping containers in Afghanistan, the Justice Department announced today. APL, an ocean carrier based in Scottsdale, Arizona, is a wholly-owned American subsidiary of Singapore-based Neptune Orient Lines Limited. The Department of Defense contract required APL to affix a satellite tracking device to each shipping container transported from Karachi, Pakistan to U.S. military bases in Afghanistan when the Department of Defense (DOD) requested the tracking services.

16 Apr 2015

Navy Officer Pleads Guilty to Bribery

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.

08 Jan 2015

U.S. Navy Officer Guilty of Bribery

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.

28 May 2014

Sealift Command Official Charged with Bribery

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…

23 Dec 2013

Mabus Tightens Navy’s Counter-fraud Measures

Ray Mabus

While the Navy already has one of the strongest counter-fraud efforts in the government, Navy Secretary Ray Mabus today announced new measures to assure contracting integrity and to prevent fraud. Mabus, who briefed the Pentagon press corps this morning, spoke amid a criminal investigation focused on Glenn Defense Marine Asia. The U.S. Department of Justice is prosecuting the case, which alleges the company overcharged the U.S. Navy for husbanding services throughout Asia. Husbanding…

21 Nov 2011

U.S. DOJ: Guilty Plea in Price Fixing Case

Florida-Based Sea Star Line LLC Agrees to Plead Guilty and Its Former President Is Indicted for Price Fixing on Coastal Freight Services Between the Continental United States and Puerto Rico Sea Star Line Also Agrees to Pay $14.2 Million Criminal Fine. Sea Star Line LLC has agreed today to plead guilty and to pay a $14.2 million criminal fine for its role in a conspiracy to fix prices in the coastal water freight transportation industry, the Department of Justice announced. Additionally…

18 Feb 2010

Guilty Plea for Price-Fixing Conspiracy

An Italian subsidiary of a U.S.-based company has agreed to plead guilty and to pay a $2.29m criminal fine for participating in a conspiracy to rig bids, fix prices and allocate market shares of marine hose sold in the United States and elsewhere, the Department of Justice announced. A one-count felony charge was filed on Feb. 16 in U.S. District Court in Houston, against Parker ITR S.r.l., a manufacturer of marine hose, headquartered in Veniano, Italy. Under the terms of the plea agreement, which is subject to court approval, Parker ITR has agreed to pay a criminal fine and to cooperate fully in the Department’s ongoing antitrust investigation. Parker ITR is the fourth company to be charged in the investigation.

22 May 2009

Guilty Plea, Conspiring to Defraud U.S. Navy

A U.S. Navy subcontractor from Virginia has pleaded guilty to conspiring to defraud the Navy in connection with contracts for fabricated metal to be used for the repair and maintenance of elevator equipment on Navy aircraft carriers and support vessels, the Department of Justice announced. The charge is the first to arise out of the Department's ongoing antitrust investigation into the sales of fabricated metal products and other materials to the U.S. Navy. Todd M. Mosiman, a resident of Virginia Beach, Va., pleaded guilty in U.S. District Court in Norfolk, Va., to conspiring with another individual to steer more than $167,000 in contracts to Mosiman's now-defunct Chesapeake-based company from at least June 2004 to at least March 2005.

23 Apr 2009

Trelleborg AB to Pay $11m in Criminal Fines

Two subsidiaries of the Swedish company Trelleborg AB, one based in Virginia and the other in France, have agreed to plead guilty and pay a total of $11m in criminal fines for their participation in separate conspiracies affecting the sales of marine products sold in the United States and elsewhere, the Department of Justice announced April 21. A two-count felony charge was filed in U.S. District Court in Norfolk, Va., against Virginia Harbor Services Inc., formerly known as Trelleborg Engineered Products Inc. (VHS/TEPI), a manufacturer of foam-filled marine fenders, buoys and plastic marine pilings headquartered in Clearbrook, Va. According to the charges…

19 Nov 2008

Exec to Plead Guilty to Bid Rigging

The former president of a California marine products company has agreed to plead guilty for his role in a conspiracy to rig bids and allocate customers with respect to marine products purchased by the U.S. Navy, the U.S. Coast Guard and other public and private entities, the Department of Justice announced. Under the plea agreement, which is subject to court approval, Andrew Barmakian has agreed to serve a sentence and pay a criminal fine to be determined by the court. He has also agreed to cooperate with the Department's ongoing investigation in the marine products industry. He is the fifth executive to agree to plead guilty in the ongoing investigation. According to the one-count felony charge filed today in the U.S.

27 Oct 2008

Guilty Plea-Conspiracy to Commit Bribery

American Composite Timbers (ACT), a firm engaged in the sale of plastic marine pilings and related products, located in Commack, N.Y., pleaded guilty to a one-count felony charge filed in U.S. District Court in Islip, N.Y. ACT is charged with facilitating payments from a co-conspirator corporation, a Virginia-based marine products firm, to a former employee of the city of New York, Charles N. Kriss. In exchange for the payments, Kriss ensured that the co-conspirator corporation received orders to supply plastic pilings for a project to repair Pier 86, which was overseen by the city of . Kriss further ensured the co-conspirator corporation kept ACT as the distributor of the pilings.

13 Dec 2007

Jail for Execs in Marine Hose Bid-Rigging Conspiracy

An independent consultant and two executives of Dunlop Oil & Marine Ltd., a manufacturer of marine hose located in Grimsby, U.K., pleaded guilty and have agreed to serve record-setting prison sentences for participating in a conspiracy to rig bids, fix prices, and allocate market shares of marine hose sold in the U.S. the Department of Justice announced. The plea agreements were filed today in U.S. District Court in Houston. The Antitrust Division filed a one-count felony charge on Dec. 3, 2007, against Peter Whittle, sole proprietor of a consulting business named PW Consulting (Oil & Marine); Bryan Allison, managing director of Dunlop Oil & Marine Ltd.; and David Brammar, Dunlop’s sales and marketing director, in U.S. District Court in Houston.

27 Mar 2007

ITT Corporation to Pay $100M Penalty and Plead Guilty

ITT Corporation, the leading manufacturer of military night vision equipment for the U.S. Armed Forces, has admitted sending classified materials overseas and will pay a $100 million penalty, Assistant Attorney General for the National Security Division Kenneth L. Wainstein and U.S. Attorney for the Western District of Virginia John L. Brownlee announced today, along with the Defense Criminal Investigative Service (DCIS) and U.S. Immigration and Customs Enforcement (ICE). The corporation will pay a total monetary penalty of $100 million, one of the largest penalties ever paid in a criminal case. ITT Corporation will also be the first major defense contractor convicted of a criminal violation of the Arms Export Control Act. According to the written plea agreement to be filed in U.S.

04 Feb 2003

U.S. Sues Shipbuilder For Alleged Overcharges

The United States has filed suit against Newport News Shipbuilding Inc. alleging that the company knowingly mischarged the U.S. Navy on costs it incurred for work under commercial contracts from 1994 to 1999, the Justice Department announced today. The lawsuit alleges that the Newport News, Virginia-based company charged the Navy for independent research and development (IR&D) costs for double-hulled tankers that Newport News was building for commercial customers under existing contracts. Since November 2001, Newport News Shipbuilding has been a wholly-owned subsidiary of Northrop Grumman Corporation. The shipbuilding company is alleged to have charged the Navy for more than $72 million of costs related to the design and development of the commercial tankers…

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