2 contractors plead not guilty to Navy bribery - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

2 contractors plead not guilty to Navy bribery

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SAN DIEGO (AP) — Two defense contractors have pleaded not guilty to bribing officials at a San Diego Navy base in exchange for millions of dollars in business.

U-T San Diego says Robert Ehnow of Coronado and Joanne Loehr of La Jolla entered the pleas Thursday in federal court to conspiracy, money laundering, bribery and wire fraud.

Prosecutors claim they gave officials at Naval Air Station North Island more than $1 million in cash and gifts, including flat screen TVs. Authorities say in return, their Poway companies received $4 million in defense business.

Authorities claim the contractors also submitted phony bills to the Defense Department that covered the cost of the bribes.

Seven other people, including four Navy officials from North Island, pleaded guilty to bribery charges in March. They await sentencing.

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Information from: U-T San Diego

 

Copyright 2012 The Associated Press.

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