FORMER VP PLEADS GUILTY TO CONSPIRACY TO BRIBE PUBLIC OFFICIALS

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, April 4, 2014
Former Vice President of Government Contracting Company Pleads Guilty to Conspiracy to Commit Bribery

A former vice president of a Chesapeake, Va., government contracting company pleaded guilty to conspiracy to pay bribes to public officials in exchange for favorable treatment in connection with U.S. government contract work.

Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Acting U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) Atlantic Operations and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller in the Eastern District of Virginia.

Adam C. White, 40, was charged by criminal information on March 28, 2014, with one count of conspiracy to bribe public officials.   White faces a maximum penalty of five years when he is sentenced on July 11, 2014.

According to a statement of facts filed with the plea agreement, White worked for a government contracting company that was created to support the U.S. Navy’s Military Sealift Command (MSC) on various telecommunication projects.   For several years, White and his business partners paid bribes to MSC public officials in exchange for favorable treatment in awarding MSC-related government contract work.

White admitted that he contributed a portion of his paycheck to the bribe payments by regularly withdrawing approximately $1,000 in cash from his personal bank account after receiving his bi-weekly paycheck and providing it to his business partners.   Together, White and his business partners paid approximately $3,000 to $4,000 a month in cash bribes to two MSC public officials.   In his statement of facts, White also admits that he was aware his business partners provided other things of value, including flat-screen televisions, to influence the official actions of a MSC public official.

As a condition of the plea agreement, White has agreed to forfeit $57,000 as the proceeds of the offense.

In December 2013, White resigned from his position as vice president of the government contracting company.

Prior to entry of this guilty plea, four other individuals pleaded guilty in connection with the same bribery scheme.   On Feb. 12, 2014, Kenny E. Toy, the former afloat programs manager for the MSC N6 Command, Control, Communication and Computer Systems Directorate, pleaded guilty to bribery and admitted receiving more than $100,000 in cash bribes.   On Feb. 18, 2014, Dwayne A. Hardman, one of White’s business partners, pleaded guilty to bribery and admitted to providing more than $140,000 in cash bribes to Toy and another MSC public official.   On Feb. 19, 2014, Michael P. McPhail pleaded guilty to conspiracy to commit bribery and agreed to forfeit $57,000.   On March 5, 2014, Roderic J. Smith, another of White’s business partners, pleaded guilty to conspiracy and agreed to forfeit $175,000.

The case was investigated by the FBI, DCIS and NCIS.   The case is being prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant United States Attorney Stephen W. Haynie of the U.S. Attorney’s Office for the Eastern District of Virginia.