Derek Ray 5:51 p.m., May 19
Military contractors found guilty of fraud
Jury says bribery and money laundering part of scheme
A federal jury today (March 4) found two persons and one company guilty of conspiracy to commit wire fraud, bribery, and money laundering in connection with military contracting. Found guilty were Robert Ehnow, president of Poway's L&N Industrial Tool & Supply; Joanne Loehr, owner of Poway's Centerline Industrial, and Centerline itself. According to the U.S. Attorney's office, evidence showed that the defense contractors supplied cash, checks, TV sets, expensive bicycles, and personal benefits to Navy officials. In return, the contractors got millions of dollars in government orders. Also, fraudulent invoices were submitted to the Department of Defense. L&N filed for Chapter 7 (liquidation) bankruptcy in 2011 but Centerline remains in business. In total, eleven defendants have been convicted in the scheme.