Former MSC Manager Sentenced on Bribes Charges

Maritime Activity Reports, Inc.

July 31, 2014

Photo: MSC

Photo: MSC

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, Control, Communication, and Computer Systems Directorate at the MSC, the leading provider of transportation for the United States Navy. Toy joined an extensive bribery conspiracy in November 2004 that spanned five years, involved multiple coconspirators, including two different companies and resulted in the payment of more than $265,000 in cash bribes, among other things of value, to Toy and to Scott B. Miserendino Sr., a former government contractor who performed work for MSC.

At his plea hearing, Toy admitted that he accepted monthly cash bribes of approximately $3,000, as well as a flat screen television and a paid vacation to the Outer Banks in North Carolina, from coconspirators Dwayne A. Hardman, Roderic J. Smith, Michael P. McPhail and Adam C. White, all of whom were employed at a government a contracting company. Toy also admitted that he accepted a $50,000 cash bribe in May 2009 from Hardman and another coconspirator, Timothy S. Miller, both of whom were employed at another government contracting company. In exchange for the bribes, Toy provided favorable treatment to both companies in connection with MSC related business.

As part of his guilty plea, Toy also admitted to engaging in a scheme to conceal his criminal activity. Toy admitted to causing more than $88,000 to be paid to Hardman in an attempt to prevent Hardman from reporting the bribery scheme to law enforcement authorities.

Toy was also ordered to serve a supervised release term of three years following his prison sentence, and ordered to forfeit $100,000.

Earlier this year, four other individuals pleaded guilty in connection with the bribery scheme. On Feb. 18, 2014, Hardman, the cofounder of both of the involved government-contracted companies, pleaded guilty to providing bribes to Toy and Miserendino. On Feb. 19, 2014, McPhail, a former employee, pleaded guilty to conspiracy to commit bribery. On April 4, 2014, White, a former vice president at, pleaded guilty to conspiracy to commit bribery. On March 5, 2014, Smith, the former president, pleaded guilty to conspiracy to bribe public officials. On June 23, 2014, United States District Judge Henry Coke Morgan sentenced Smith to serve 48 months in prison followed by one year of supervised release and ordered him to forfeit $175,000.

On May 23, 2014, a grand jury in the Eastern District of Virginia indicted Miserendino and Timothy S. Miller, a businessman whose company sought contracting business from the Military Sealift Command. The indictment charges Miserendino with one count of conspiracy to commit bribery, one count of bribery, one count of conspiracy to commit obstruction of criminal investigations and to commit tampering with a witness, and one count of obstruction of criminal investigations. The indictment charges Miller with one count of conspiracy to commit bribery and two counts of bribery. Trial is set for Sept. 30, 2014, before Chief Judge Rebecca Beach Smith.

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

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