Bribery Scandal Rocks Chesapeake, Va.

Former Chesapeake Subcontractor Pleads Guilty to Bribery

NORFOLK, Va. – Dwayne Allen Hardman, 44, of Charleston, W.V., has pleaded guilty to paying bribes to public officials, according to a plea deal accepted by United States Magistrate Judge Douglas E. Miller.

Hardman, who faces a maximum 15-year prison sentence on June 6, 2014, was charged with bribery in February 2014. The case was investigated by agents from the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, and the FBI Norfolk Field Office.

According to court documents, Hardman and his business partner agreed to pay cash bribes to two Military Sealift Command officials in exchange for official action to steer government contracts to their corporation. From March 2005 to 2007, they paid the officials approximately $3,000 each month in cash bribes, totaling around $144,000.

In February 2009, Hardman left his former business and formed a new company with another businessman. The two MSC officials again agreed to steer contracting work to Hardman’s new company in exchange for bribes. In May 2009, Hardman and his new partner paid each of the officials $25,000 in cash bribes.

One of the MSC officials, Kenny Toy, who was the Afloat Programs Manager for MSC’s N6 Command, Control, Communication, and Computer Systems Directorate, pleaded guilty to accepting bribes in conjunction with this scheme in February 2014.

Assistant United States Attorney Stephen W. Haynie and Trial Attorney Emily Rae Woods, of the Criminal Division’s Public Integrity Section, are prosecuting the case on behalf of the United States. The case highlights the ongoing efforts to root out corruption in government contracting and the need for transparency and accountability in public officials.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.