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Navy Corruption|Ring Cleaned Out

SAN DIEGO (CN) - Four Navy officers and three defense contractors pleaded guilty to a "wide-ranging fraud and corruption scheme" at Naval Air Station North Island (Coronado), in which contractors bribed officers with more than $1 million in gifts for "millions of dollars in fraudulent orders," the U.S. Attorney's Office said.

Charged and pleading guilty were Navy officers Donald Vangundy, 54, of Chula Vista; Kiet Luc, 53; David Lindsay, 57, both of San Diego; and Brian Delaney, 55, of La Mesa; and defense contractors Michael Graven, 43, of Carlsbad; John Newman, 51, of Poway; and Paul Grubiss, 39, of Wickliffe, Ohio, according to the U.S. Attorney's Office's statement.

"As part of the conspiracy, defense contractors provided Navy officials with over one million dollars in personal benefits, including cash, checks, retail gift cards, flat-screen television sets, luxury massage chairs, home furniture and appliances, bicycles costing thousands of dollars, model airplanes, and home remodeling services. In return, the Navy officials placed millions of dollars in fraudulent orders with the defense contractors," prosecutors said in the statement.

All were charged with conspiracy to commit wire fraud; Vangundy and Grubiss were also charged with conspiracy to commit bribery; and Vangundy, Luc and Graven of separate charges of filing a false tax return.

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