SAN DIEGO (CNS) - Two former executives of foreign defense contractor Glenn Defense Marine Asia pleaded guilty Tuesday to fraud charges for conspiring to submit bogus bids, claims and invoices to the U.S. Navy in an effort to win contracts and overcharge the Navy by tens of millions of dollars in a years- long corruption scheme.
Neil Peterson, 39, and Linda Raja, 44, both of Singapore, worked as chief deputies for defense contractor Leonard Glenn Francis to fill the coffers of their company at the expense of the U.S. Navy, prosecutors said.
Peterson was vice president of Global Operations for GDMA and Raja served as GDMA's general manager for Singapore, Australia and the Pacific Isles.
Both defendants were arrested by authorities in Singapore at the request of the U.S. government and were extradited to San Diego last October. They are scheduled to be sentenced Aug. 11.
According to their plea agreements, Peterson, Raja and other members of GDMA's management team created and submitted fraudulent bids that were either entirely fictitious, contained falsified prices supposedly from actual businesses, or fraudulently stated that the business shown on the letterhead could not provide the items or services requested.
In that manner, Peterson and Raja and other GDMA managers could ensure that GDMA's quote would be selected by the U.S. Navy as the supposed low bidder. GDMA could then control and inflate the prices charged to the U.S. Navy without any true, competitive bidding, as required, according to the government.
For example, under the direction of Peterson and other GDMA managers, false documents and inflated invoices were presented to the U.S. Navy for the visit of the USS Bonhomme Richard to Malaysia in October 2012.
The full amount billed to the U.S. Navy for the visit was $1.2 million, of which $877,413 was fraudulently inflated, according to court papers.
Peterson and Raja admitted that losses to the U.S. Navy as a result of their actions exceeded $34.8 million.
According to prosecutors, 20 Navy officials have been charged so far in the fraud and bribery investigation.
In addition, five GDMA executives -- Peterson, Raja, Francis, Alex Wisidagama and Ed Aruffo -- have pleaded guilty in the case.
San Diego Police are on scene of an alleged assault with a deadly weapon and domestic violence incident in the 2500 block of Ellentown Road in La Jolla.
Prepare to be dazzled. The Nat has opened Hidden Gems, a brand-new exhibition that will display more than 100 stunning objects from the Museum's mineralogy collection, many of which have never before been on public display.
A 92-year-old man was jailed Thursday on suspicion of fatally shooting his 51-year-old son inside their Old Town home.
A firefighter from Washington state who's been battling the Woolsey Fire was injured Thursday morning when he was struck by a vehicle on Pacific Coast Highway, and containment of the blaze increased to 57 percent.
The San Diego Superior Court issued a warning to the public Thursday about a scammer targeting the Hispanic community and those who may be afraid to go to authorities.
Authorities have identified a 69-year-old man who was gravely injured when he was struck by a car while walking in the same Poway intersection where sheriff's deputies were investigating a collision in which his wife struck and injured a pedestrian about 30 minutes earlier.
Arraignment is scheduled Thursday for a transient accused of repeatedly burglarizing the office of a South Bay community group before torching the premises last week.
Offshore winds will weaken throughout the day Thursday. Gusty winds are possible in the mountains and inland valleys, though weaker and less widespread.