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.
Warm weather is expected to return to San Diego this week peaking around the mid-week point. Temps should cool again by next weekend.
Two San Diego police officers were shot and wounded in a standoff at a College Area condominium that left the suspect dead late Saturday night.
A man was found dead under suspicious circumstances in a Vista apartment early Sunday, and homicide detectives were investigating, sheriff's deputies said.
Hundreds of statewide faith leaders will march Saturday afternoon to the Otay Mesa Detention Center, where they will protest immigration policies that separated more than 2,300 children from their parents.
A 325-acre blaze burning at Camp Pendleton Saturday was described as a ``training fire'' by a base official.
The average price of a gallon of self-serve regular gasoline in San Diego County dropped today for the 16th consecutive day, decreasing nine-tenths of a cent to $3.697.
A crash on an Oceanside freeway Saturday morning left two cars on their roofs and sent one person to a hospital, a fire official
A stretch of road in National City was shut down briefly after a large crowd took to the streets to celebrate the Mexico national soccer team's 2-1 victory over South Korea today in the 2018 FIFA World Cup.
The San Diego Humane Society today urged residents to volunteer their homes as foster spaces for the influx of animals typically lost after Fourth of July.
A man was critically injured Friday night when he chased a ball into the street and was hit by a car.