Former Navy Civilian Employee Sentenced to 72 Months for Bribery and Tax Fraud Schemes

SAN DIEGO - James Soriano, a former public official at the Naval Information Warfare Center in San Diego, was sentenced in federal court today to 72 months in prison for accepting hundreds of thousands of dollars in bribes.

According to his plea agreement, Soriano admitted he accepted bribes from defense contractors in the form of lavish meals, employment opportunities for family members and friends, and tickets to premier sporting events. In exchange, he used his position to help the contractors secure and maintain hundreds of millions of dollars in government contracts.

Soriano also admitted to filing false tax returns in connection with the bribes he received.

U.S. District Judge Todd W. Robinson ordered Soriano to forfeit $209,527.51 and pay $18,722.40 in restitution to the Internal Revenue Service.

According to Soriano's plea agreement, the defense contractors - acting through their presidents, officers, and employees - gave various things of value to Soriano, including dinners at Ruth's Chris, Island Prime, and Fogo de Chão; tickets to the 2018 MLB All-Star Game, 2018 World Series, and 2019 Superbowl; and jobs for Soriano's family and friends, including Soriano's wife and Soriano's family friend, Liberty Gutierrez, who gave Soriano $2,000 a month in cash from her salary at one of the companies working under a defense contract.

In return, Soriano took official action to aid his benefactors, such as allowing defense contractors to draft government documents in competitive and non-competitive procurements, submitting those documents as part of the procurement process, and advocating for their selection as defense contractors. Soriano also willfully failed to disclose the cash payments he received from Gutierrez on his federal tax returns.

According to Soriano's plea agreement, from approximately March 2016 through at least October 2019, Soriano and a coworker, Dawnell Parker, received bribes from Philip Flores, the president and CEO of Intellipeak Solutions, Inc., a defense contractor headquartered in Fredericksburg, Virginia. Soriano also admitted that from approximately May 2015 through at least October 2019, he separately received bribes from another defense contractor, with offices in San Diego and Stafford, Virginia, who gave him things of value, such as expensive dinners, a job for his wife, and rounds of golf at a private country club.

Further, according to Soriano's plea agreement, from approximately June 2014 through at least October 2019, Soriano received bribes from Russell Thurston, the Vice President of Cambridge International Systems, Inc., a defense contractor headquartered in Arlington, Virginia. In return for these bribes, Soriano used various methods to steer contracts to these defense contractors and kept his contracting activities hidden from the Naval Information Warfare Center.

"Corruption in federal procurement undermines fair competition and cheats law-abiding businesses," said U.S. Attorney Adam Gordon. "This is a strong sentence that proves corrupt officials will be held accountable."

"The sentencing of Mr. Soriano should serve as a deterrent to anyone seeking to enrich themselves through fraudulent contracting practices," said John E. Helsing, Special Agent-in-Charge for the Department of War Office of Inspector General Defense Criminal Investigative Service (DCIS), Western Field Office. "This type of criminal behavior undermines the Department or War's procurement system and erodes public trust. DCIS will continue to work aggressively with our law enforcement partners and the Department of Justice to investigate and prosecute public corruption affecting America's Warfighters."

"Mr. Soriano abused his position of trust to benefit favored contractors and undermine the integrity of the procurement process," said Acting Special Agent in Charge Brian Merkal of the NCIS Economic Crimes Field Office. "This sentencing reinforces our unwavering commitment to holding public officials accountable when they betray the public trust for personal gain."

"This case shows how greed and corruption drive people to exploit public systems for personal gain," said Darren Lian, Special Agent in Charge with IRS Criminal Investigation's Los Angeles Field Office. "IRS-CI's financial expertise allows us to cut through even the most complex schemes, follow the money, and hold those who betray the public trust accountable."

This case is being prosecuted by Assistant U.S. Attorney Patrick C. Swan.

DEFENDANT Case Numbers 23-cr-2282-TWR-1 and 24-cr-341-TWR-1

James Soriano Age: 65 Las Vegas, NV

SUMMARY OF CHARGES

Conspiracy to Commit Bribery - Title 18, U.S.C., Section 371

Maximum penalties (per count): Five years in prison; $250,000 fine

False Statements in Tax Returns - Title 26, U.S.C., Section 7206(1)

Maximum penalties: Three years in prison; $100,000 fine

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Small Business Administration - Office of Inspector General

Internal Revenue Service Criminal Investigation

Department of Health and Human Services - Office of Inspector General

If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ('Fraud Division'). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.