Tuesday, March 5, 2013

Navy contractors guilty in bribery scheme

 "A federal jury on Monday convicted two Poway defense contractors of bribing civilian employees at North Island Naval Air Station with thousands of dollars in gift cards, jewelry, fancy electronics and cash in exchange for landing contracts.
Robert Ehnow, owner of L & N Industrial Tool & Supply, and Joanne Loehr, owner of Centerline Industrial Inc., were found guilty of conspiracy to commit bribery, wire fraud and money laundering.
The jury also acquitted Ehnow of five specific bribery charges and Loehr of one such charge. Both now face potentially lengthy time in federal prison when they are sentenced in May.
The verdict capped a weeklong trial before U.S. District Judge Larry A. Burns. It marked the second stage of a federal investigation that began in late 2010 of a corruption ring at the Coronado Navy base where prosecutors said civilian workers received more than $1 million in bribes from 2003 to 2010.
“These defense contractors profited, not from doing business the right way, but by fraud and bribery,” U.S. Attorney Laura Duffy said in a news release. “Today’s verdicts send a clear signal that our community will not tolerate corruption.”
Federal prosecutors said that in addition to providing bribes, the contractors also charged the government for providing various items that were not covered under the contracts they were working under. To do so, they submitted false bills that made it look like they were billing for legitimate materials covered by the contract....
Read full article here:  http://www.utsandiego.com/news/2013/mar/04/navy-contractors-bribery-scheme/?st

No comments: