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FCPA Blog Daily News

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Tuesday
Jun242014

Businessman jailed four years in Navy MSC bribe scandal 

Image courtesy of the U.S. Navy Military Sealift Command The co-founder and former president of a government contracting company was sentenced Monday to 48 months in prison for conspiracy to bribe public officials.   

Roderic J. Smith, who pleaded guilty in March, was also ordered to forfeit $175,000.

Smith was the co-founder and president of a Chesapeake, Virginia firm that sought contracting business from the U.S. Navy Military Sealift Command (MSC).   

Adam C. White, an associate of Smith's, pleaded guilty to conspiracy to commit bribery in April.

In 2004, Smith joined a bribery conspiracy that lasted four years, the DOJ said. It involved several co-conspirators and resulted in bribes of more than $265,000 to public officials who worked for the MSC.

Two officials, Kenny E. Toy and Scott B. Miserendino, Sr., were charged with accepting $100,000 to give favorable treatment on U.S. government contracts. Their trial is set to begin on September 30.

Smith's business won $3 million in work from the MSC during the conspiracy, the DOJ said.

He admitted paying more than $85,000 to his business partner, Dwayne A. Hardman, as hush money to keep the bribery scheme secret.

Hardman pleaded guilty in February to bribery. He admitted paying bribes of more than $140,000 in cash to two MSC officials.

Also in February, Kenny E. Toy and Michael P. McPhail pleaded guilty to the scheme.

Toy was a former afloat programs manager for the MSC N6 Command. He admitted taking more than $100,000 in cash bribes.

McPhail pleaded guilty to conspiracy to commit bribery and agreed to forfeit $57,000.

A copy of the DOJ's June 24, 2014 release is here.

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Julie DiMauro is the executive editor of FCPA Blog and can be reached here.