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Seven Plead Guilty to Military Contracting Fraud

Four North Island naval officials and three defense contractors today (March 28) pleaded guilty to a contracting fraud. Navy officials Donald Vangundy, Kiet Luc, David Lindsay, and Brian Delaney received more than $1 million of gifts from the contractors, according to the U.S. Attorney's office. The gifts included cash, checks, retail gift cards, flat screen TV sets, home furniture, appliances, bicycles, model airplanes, home remodeling services, and luxury massage chairs, says the government. In return, the naval officials placed millions of dollars in orders with the defense contractors, Michael Graven, John Newman, and Paul Grubiss, according to the government. Sentencing is July 2.

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Four North Island naval officials and three defense contractors today (March 28) pleaded guilty to a contracting fraud. Navy officials Donald Vangundy, Kiet Luc, David Lindsay, and Brian Delaney received more than $1 million of gifts from the contractors, according to the U.S. Attorney's office. The gifts included cash, checks, retail gift cards, flat screen TV sets, home furniture, appliances, bicycles, model airplanes, home remodeling services, and luxury massage chairs, says the government. In return, the naval officials placed millions of dollars in orders with the defense contractors, Michael Graven, John Newman, and Paul Grubiss, according to the government. Sentencing is July 2.

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All the current discussion of cutting the military budget involves reducing the uniformed forces. The people in uniform are but the tip of an iceberg of massive military contracts that employ legions of civilian workers and spending $ billions every day. When you describe these felons as "naval officials" does that mean any of them are active naval uniformed personnel? They sound like civilians, and those civilians employed by the DOD are very well paid already. If the DOD were capable of cleaning up the waste and fraud in its contracting, it could easily continue to maintain current force levels and even expand an already-too-small force. The DOD has been unable to regulate itself for decades, and perhaps for its entire existence.

March 28, 2012

I don't agree that our military force is already too small. I believe we must cut back our military commitments around the world. We had no business going into Iraq and must get out of Afghanistan, for example. But I agree with you that these kinds of contracting frauds must be rooted out. Like you, I believe that the naval officials were all civilians, but I do not know for sure. Best, Don Bauder

March 28, 2012

Since my previous comment, it has been clarified that they all were civilians. Three of them had worked at North Island for about thirty years. We can only wonder how long they've been on the take. I just doubt that this is the first time they engaged in this sort of misconduct to put money in their pockets or "gifts" under the tree. This may have been going on for many years. In the private sector this sort of thing can happen, but it usually doesn't persist for long, although in some instances can go on for decades. With revelations of this sort, we can only wonder how many more such bureaucrats are dirty, just here in SD.

March 29, 2012

Yes, I was going to post something today: they were all civilians. There have been several earlier cases of military contracting fraud in San Diego in the last few years. Best, Don Bauder

March 29, 2012

We need to cut our military by 40%. I would close half the bases operating outside the US.

We are not and should not be the world police. Not when the country is going down the toilet.

March 29, 2012

Agreed, SP. Best, Don Bauder

March 29, 2012

With these types lack of ethics, I would be concerned that they also used defective ( reclaimed from salvage) parts to repair the air frames.

It was not that many years the same thing was in the news that accounted for failures of vital components that ended in death.

April 2, 2012

That's true. San Diego contracting frauds involved use of faulty components that led to failures. Best, Don Bauder

April 3, 2012

Like most government "investigations" they don't want to dig too deep, or they may just find a mirror at the bottom of the pit.

April 3, 2012

All too true, Murphyjunk. Best, Don Bauder

April 4, 2012

Don, Sentencing was scheduled for July 2nd. It is July 5th. Do you have any update, or how can I find out the sentence handed down? Any web search only produces hits for the "newly breaking" March 28th story. Thanks.

July 5, 2012

Sentencing postponed to Sept. 10 according to a source at the Union-Tribune

July 16, 2012

I'm just wondering if sentencing has taken place yet? Not heard a word about it!

Sept. 29, 2012
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