A former Southern California-based Navy veteran pleaded guilty Tuesday in Los Angeles to defrauding the military out of more than $9 million through a bid-rigging and contract steering scheme involving kickbacks and other benefits to a fellow enlistee.
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Cory Wright, 49, of Columbus, Georgia, entered a plea to a single federal count of wire fraud and agreed to cooperate with prosecutors, according to the Justice Department.
Sentencing was scheduled for March 31.
Wright worked for the Navy's Mobile Utilities Support Equipment division -- Muse -- at the naval base in Port Hueneme in Ventura County. The division provided support for large generators and other systems for U.S. Department of Defense operations around the world. To accomplish its mission, Muse contracted to procure goods and services, typically by using subcontractors, court papers show.
Prosecutors said that when Wright neared retirement, he and an unnamed fellow Navy enlistee held supervisory positions that allowed the defendant to exercise considerable influence over naval contracts. They agreed to create a Georgia-based company, C&C Power Solutions.
Papers filed in Los Angeles federal court show that to provide initial funding for CCP, Wright's fellow enlistee caused a prime contractor and subcontractors to issue payments to the company for products and services that were not provided. Once CCP was operational, Wright and his co-conspirator engaged in a bid-rigging scheme to ensure CCP received subcontracts from a prime contractor, prosecutors said.
According to federal prosecutors, Wright's accomplice ensured CCP received valuable Navy contracts in exchange for thousands of dollars in kickback payments and other benefits.
Wright admitted in his plea agreement to generating phony invoices that said CCP had completed work and delivered products to Muse when, in fact, the company had not completed its contractual obligations. This caused the prime contractor to submit invoices containing Wright's false information, which led the Navy to issue payments on the invoices, the Justice Department said.
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