A former executive of a defense contracting firm has been sentenced to 63 months in prison for his role in a massive fraud scheme that over-billed the U.S. Navy by more than $34 million for ship husbanding services.
Alex Wisidagama, 42, of Singapore, the former global manager for government contracts of Glenn Defense Marine Asia (GDMA), was sentenced on March 18, 2016, by U.S. District Judge Janis L. Sammartino.
In addition to imposing the prison term, Judge Sammartino ordered Wisidagama to pay $34.8 million in restitution to the Navy.
Wisidagama pleaded guilty in March 2014 to one count of conspiracy to submit false claims for payment. He is the third defendant to be sentenced in a massive fraud and corruption scheme involving GDMA, which provided port services to U.S. Navy ships in the Asia-Pacific region.
According to his plea agreement, Wisidagama and his cousin, GDMA CEO Leonard Glenn Francis, 51, of Malaysia, perpetrated a scheme to defraud the U.S. Navy on ship husbanding contracts by over-billing for the sale of goods, fuel, and port tariffs.
The scheme caused the Navy to lose more than $34 million in total losses, with Wisidagama admitting that in October 2011, GDMA charged the U.S. Navy $2,739,351.49 to service the USS Mustin during a port visit to Thailand, $1,593,766.75 of the charges were fraudulent.
To date, 10 individuals have been charged in connection with this scheme, with nine having pleaded guilty.
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Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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