This week, two former executives with Glenn Defense Marine Asia (GDMA) were sentenced for committing fraud and swindling the U.S. Navy by tens of millions of dollars. The two executives were accused of conspiring to submit bogus claims and invoices to the United States Navy in hopes of winning contracts and overcharging the Navy. It was alleged that the corruption and fraud scheme was carried out of a period of years.
39-year-old Neil Peterson and 44-year-old Linda Raja were sentence to 70 and 46 months respectively. Both are from Singapore. Both served as chief deputies for Glenn Defense Marine Asia, which is owned by Leonard Glenn Francis. Peterson served as the company’s vice president for global operations, while Raja served as the company’s general manager for Australia, Singapore and the Pacific Isles.
At the request of the United States government, Singapore authorities arrested and extradited the defendants on October 28, 2016. Both pleaded guilty to one count of conspiracy to defraud the United States in May of 2017. In admissions made by the defendants it was concluded that they cooperated with other members of GDMA’s management to create and submit fraudulent bids that were entirely fictitious or presented false prices from actual businesses.
In some cases, the defendants conspired with others to submit documents with letterheads for other businesses claiming they were unable to provide the items or services requested. Simultaneously, the defendants admitted to willingly creating and approving false port authorities with fraudulently inflated port tariff rates. They approved the presentation of these documents to the Navy.
In return, GDMA charged the United States Navy with inflated prices, instead of what they paid to the legitimate port authorities. In October of 2012, the U.S.S. Bonhomme Richard traveled to Kota Kinabalu, Malaysia. At the direction of Peterson and other core members of GDMA’s management team, false documents with inflated prices were delivered to the U.S. Navy. For the visit, the U.S. Navy was billed more than $1.2 million. Approximately $877,413 was fraudulently inflated.
As a result of the scheme, Raja and Peterson admitted that the U.S. Navy incurred losses exceeding $34.8 million. To date, 17 of the 27 defendants in the case have pleaded guilty. The defendants are considered innocent until convicted beyond a reasonable doubt in a court of law.