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Indictments, Convictions & Arrests Archive

Federal Court Orders U.S. Defense Contractor KBR To Stand Trial in Nepali Human Trafficking Case

Published: August 23, 2013

WASHINGTON — After a review of the evidence, a federal court today ordered the Nepali human trafficking case against Houston, Texas-based U.S. defense contractor KBR and its Jordanian subcontractor Daoud & Partners to proceed to trial. A trial date has been set for April 14, 2014. Lead plaintiffs counsel is Cohen Milstein Sellers & Toll PLLC.

The case involves 12 Nepali men, ages 18 to 27, who in 2004 were promised safe jobs in Jordan, but were instead involuntarily transported to Iraq. Eleven of the men were captured and killed by insurgents on the way to the U.S. Air Force base where they were to work. The plaintiffs’ complaint alleged that KBR knowingly violated the Trafficking Victims Protection Act. The Court denied KBR’s motion that argued the plaintiffs did not have sufficient evidence to proceed to trial.

In his order, Judge Keith Ellison, U.S. District Court, Southern District of Texas, wrote, “the proffered evidence shows that each man was deceived about his promised job; each man was promised a hotel-related job in Jordan; each man’s family took on significant debt in order to pay recruitment fees; when the men arrived in Jordan, they were subject to threats and harm; their passports were confiscated; and the men were locked into a compound and threatened.” Read the remainder of this entry »

Three Georgia Residents Sentenced for Their Roles in Bribery Scheme Related to the Award of Government Contracts

(DoJ) – June 16, 2013 – A former employee at the Marine Corps Logistics Base Albany (MCLB-Albany) and two local businessmen were sentenced today for their roles in a bribery scheme related to the award of contracts for machine products that resulted in approximately $907,000 in fraudulent overcharges to the U.S. Marines, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.

Michelle Rodriguez, 32; Thomas J. Cole, 43; and Fredrick W. Simon, 55, all of Albany, Ga., were sentenced today by U.S. District Judge W. Louis Sands in the Middle District of Georgia.  Rodriguez was sentenced to 70 months in prison and ordered to pay $161,000 in restitution; Cole was sentenced to 46 months in prison and ordered to pay $209,000 in restitution; and Simon was sentenced to 32 months in prison and ordered to pay $74,500 in restitution.  Each is also subject to a $907,000 forfeiture order and three years of supervised release.

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Former Navy Engineer Pleads Guilty to Organizing and Managing Multi-Million Dollar Fraud Scheme; Associate Admits to Stealing Government Funds

Ralph  Mariano admits to defrauding U.S. Government of between $7 and $20 million  dollars; R.I.  Attorney Mary O’Rourke admits theft of over $200,000 of government funds

(DoJ) – PROVIDENCE,  R.I. – May 30, 2013 – Ralph M. Mariano, of Warwick, R.I., a former senior systems engineer  with the United States Navy’s Naval Sea Systems Command (NAVSEA) in Newport,  R.I., and Washington, D.C., pleaded guilty in U.S. District Court in Providence,  R.I., today to conspiracy and to defrauding the U.S. Government of between $7  million and $20 million by directing co-conspirators to bill the Navy for work  that was never performed, announced Peter F. Neronha, United States Attorney  for the District of Rhode Island.

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Two Corrupt Defense Contractors Get Prison

Posted May 21, 2013 By Forseti

(Courthouse News) – SAN DIEGO -  May 21, 2013 – Two defense contractors were sentenced Monday to 3 years in federal prison for conspiring to steal $7 million from the United States.

Two people and a corporation were sentenced for “a fraud and corruption scheme” at Naval Air Station North Island, in Coronado, near San Diego, the U.S. Attorney’s Office said.

Robert Ehnow, 46, of Coronado, owner and president of Poway defense contractor L&N Industrial Tool & Supply, was sentenced to 3 years in prison and ordered to pay $760,000 in restitution to the Navy.

Joanne Loehr, 52, of La Jolla, owner and president of Poway defense contractor Centerline Industrial, was sentenced to 3 years in prison and ordered to pay $300,000 in restitution to the Navy.

Loehr’s company, Centerline, was ordered to pay $1.8 million in restitution.

A jury convicted them in February of conspiracy and bribery.

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Georgia Men Plead Guilty to Receiving Bribes  in Transportation Scheme at Local Military Base

(DoJ) – May 8, 2013 – Two former employees at the Marine Corps Logistics Base Albany (MCLB-Albany) have pleaded guilty to receiving bribes related to a scheme to funnel freight hauling business to a local transportation company resulting in the loss of millions of dollars to the United States government, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.

Mitchell D. Potts, 48, and Jeffrey S. Philpot, 35, both of Sylvester, Ga., each pleaded guilty today before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.

During their guilty pleas, Potts, the former Traffic Office Supervisor for the Defense Logistics Agency (DLA) at MCLB-Albany, and Philpot, the former Lead Transportation Assistant in the Traffic Office, admitted to participating in a scheme whereby Potts and Philpot assisted Person A, the owner of several local commercial trucking companies, in obtaining trucking business from the DLA in exchange for the payment of cash and other things of value.  Both defendants admitted that they took a variety of steps Read the remainder of this entry »