Naval 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.

30 May 2018

Inchcape to Pay $20 Mln for Allegedly Overbilling US Navy

(U.S. Navy photo by Daniel Barker)

U.K. based marine services contractor Inchcape Shipping Services Holdings Limited and several of its subsidiaries have agreed to pay $20 million to resolve allegations that they violated the False Claims Act by knowingly overbilling the U.S. Navy under contracts for ship husbanding services, the U.S. Department of Justice announced.Inchcape provided goods and services, including food and other subsistence items, waste removal, telephone services, ship-to-shore transportation, force protection services and local transportation…

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.

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 May 2017

Training for Maritime Law Enforcement in ME

Photo: International Maritime Organization (IMO)

A three-week training course on maritime law enforcement for the Middle Eastern countries surrounding the Gulf of Aden concluded  May 4 in Jeddah, Saudi Arabia. The course brought together specialists from 14 signatory countries* to the Djibouti Code of Conduct – the IMO instrument helping to repress piracy and armed robbery against ships in the Western Indian Ocean and the Gulf of Aden. Participants covered topics covered under the recently adopted Jeddah amendment to the Djibouti Code – such as how to suppress a range of illicit activities.

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.

07 Apr 2016

Training toward Greater Maritime Security

Photo: IMO

Extensive maritime security training involving countries operating under the Djibouti Code of Conduct (DCoC) has taking place from March 20-April 7 in Jeddah, Saudi Arabia. Maritime law enforcement officials from 17 DCoC signatory States (the Comoros, Djibouti, Egypt, Ethiopia, Jordan, Kenya, Madagascar, Maldives, Mauritius, Mozambique, Oman, Saudi Arabia, Seychelles, Somalia, South Africa, the Sudan, the United Arab Emirates) participated in exercises dealing with transnational organized crimes at sea – including…

19 Nov 2015

U.S. Joins Lawsuit Alleging ISS Overbilling

The government has announced  that it has joined a lawsuit alleging that Inchcape Shipping Services Holdings Limited and certain of its subsidiaries (collectively, Inchcape) violated the False Claims Act by knowingly overbilling the U.S. Navy for ship husbanding services from years 2005 to 2014. Inchcape is a marine services contractor headquartered in the United Kingdom. As a ship husbanding services provider, Inchcape arranged for the provision of goods and services to Navy ships at ports in several regions throughout the world, including southwest Asia, Africa, Panama, North America, South America and Mexico. Inchcape’s services typically included the provision of food and other subsistence items…

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.

05 Feb 2015

Former US Navy Contracting Officer Arrested

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.

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…

26 Mar 2014

Update on Norfolk Navy Yard Shooting

USS Mahan: Official Navy photo

Capt. "First of all, our thoughts and prayers are with the family of the Sailor killed last night. This is a very difficult and sad time for our Navy family. At this moment, we are in the process of notifying the Sailor's next of kin and I would ask that you please respect their privacy at this very difficult time. Information about our Sailor will come at the appropriate time and today is not the day. I can tell you . . . at approximately 11:20 p.m. [Tuesday night] there was a shooting on board USS Mahan at Pier 1.

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…

13 Dec 2013

Former NCIS Director Named Advisor at Ridge Global

Thomas Betro

Tom Ridge, President and CEO of Ridge Global, an international provider of security and risk management services, today announced that Thomas Betro, former Director of the Naval Criminal Investigative Service (NCIS), and VP at NTT DATA, has joined as an advisor. Betro will work closely with Ridge Global’s Flag Bridge strategic maritime team to help guide the expansion of a global maritime criminal investigation service. “We are fortunate to have a seasoned maritime law enforcement professional like Tom Betro on our team,” said Gov. Ridge.

11 Dec 2013

U.S. Navy to Audit Port Services

Secretary of the Navy Ray Mabus spelled out in a memorandum last week his expectations for the review and audit of procedures, administration, and performance of all husbanding and port services contracts. The memorandum, dated Dec. 5, provides details and additional tasking to guidance Mabus originally directed in September, in light of investigations by the Naval Criminal Investigative Service (NCIS) and audits by the Naval Audit Service of husbanding and port service contracts. "Back in September, I directed a complete review of our husbanding and port services contracts following the investigation into contracting procedures in the Pacific Fleet. This tasking memo reiterates the urgency of that review and provides additional tasking," said Mabus.

19 Nov 2013

Somali Pirates Sentenced for the Murder of Four Americans

Somali nationals Ahmed Muse Salad, a/k/a “Afmagalo,” 27, Abukar Osman Beyle, 33, and Shani Nurani Shiekh Abrar, 31, who were previously found guilty of piracy, murder within the special maritime and territorial jurisdiction of the United States, violence against maritime navigation, conspiracy to commit violence against maritime navigation resulting in death, kidnapping resulting in death, conspiracy to commit kidnapping, hostage taking resulting in death, conspiracy to commit hostage taking resulting in death and multiple firearms offenses, were sentenced this week. Salad, Beyle and Abrar were all sentenced to 21 life sentences, 19 consecutive life sentences and two concurrent life sentences…

07 Aug 2013

Life in Prison for Somali Pirates who Murdered Four Americans

Somali nationals Ahmed Muse Salad, a/k/a “Afmagalo,” 25, Abukar Osman Beyle, 20, and Shani Nurani Shiekh Abrar, 29, who were previously found guilty by jury of all 26 counts charged to include piracy, conspiracy to commit kidnapping, hostage taking resulting in death, kidnapping resulting in death and multiple firearms offenses, were sentenced today by a federal jury. The three defendants were sentenced to life-in-prison for their roles in the February 22, 2011 murder of four Americans aboard the sailing vessel Quest.

19 Oct 2012

MARAD Steps Up

The U.S. The paradigm for global transportation security underwent a dramatic shift in the aftermath of the September 11 terrorist attacks. In the years that followed, industry and government worked together to add layers of security to mitigate risk while maintaining the flow of commerce. The Department of Transportation’s (DOT) Maritime Administration (MARAD) has since developed security initiatives which ensure safety and efficiency in America’s Marine Transportation System (MTS) by focusing on three crucial improvement categories: transparency, accountability and resiliency.

13 Aug 2012

DOJ: Second Indictment for Somali Pirates

More Charges for Alleged Somali Pirates Indicted for Attack of the USS Ashland. A federal grand jury in the Eastern District of Virginia has returned a second superseding indictment, charging five men from Somalia with engaging in piracy and related offenses pertaining to the attack on the Navy ship, the USS Ashland. Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, made the announcement. As in the prior indictments, the second superseding indictment charges five men…

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