SAN DIEGO, CA – Herbert Gutierrez, 54, of San Diego, a 20-year veteran of the U.S. Navy, is trading ship shape for lockup after being sentenced to 24 months in federal prison for pilfering over $2.5 million worth of goods from the U.S. Navy. Gutierrez, a former warehouse manager at the Military Sealift Command Warehouse, wasn’t just skimming; he ran a full-blown operation, turning government property into personal profit.
For roughly nine months, beginning in July 2018, Gutierrez systematically siphoned off inventory, listing it for sale on online marketplaces like eBay. He didn’t stop at online sales. He actively *invited* private individuals onto the MSC warehouse property, both during and after work hours, allowing them to load up trucks with stolen goods. The brazenness is staggering. In February 2019 alone, Gutierrez facilitated the removal of over $1 million in copper nickel tubing via a utility truck and tractor-trailer.
The scheme didn’t rely on stealth. Gutierrez also offloaded Caterpillar parts, shipping four pallets worth of stolen inventory with the help of a private freight company. He even went so far as to fabricate government paperwork to cover his tracks. But the operation began to unravel in April 2019 when Gutierrez welcomed two individuals into the warehouse – who turned out to be undercover agents. His own words, caught on tape, reveal a callous disregard for the law: “I’m looking at volume. I’m not looking at making a million-dollar profit, I’m looking at volume. I’m trying to keep this stuff going, that’s how I get paid.”
Gutierrez accepted payment in cash and through PayPal, amassing a total personal profit of $2,536,293.63 from the stolen goods. He now faces a $57,656.69 forfeiture and is ordered to pay full restitution to the U.S. Navy. The scale of the theft points to a systemic failure in oversight, and raises questions about security protocols at the MSC warehouse.
“This defendant was running a massive and brazen scheme that fleeced the Navy of millions of dollars,” stated U.S. Attorney Robert Brewer. “This conduct was outrageous and illegal, and he is now appropriately going to prison for it.” Garrett Waugh, Special Agent in Charge of the NCIS Southwest Field Office, echoed the sentiment, emphasizing the importance of reporting suspected fraud within the military community. The case, 19CR4552-W, was prosecuted by Assistant U.S. Attorney Michelle L. Wasserman (619) 546-8431.
The Naval Criminal Investigative Service (NCIS) led the investigation, exposing Gutierrez’s operation and bringing him to justice. This isn’t just about money; it’s about eroding trust and compromising national security. The Navy is left to assess the full extent of the loss and implement tighter controls to prevent future exploitation.
Related Federal Cases
- Car Czar’s $90M Fraud Lands Him 10 Years · California
- Corona Man’s False Tax Return Scheme Lands Him in Hot Water · California
- Navy Vet Bilks $9M From US Navy in Kickback Scheme · Georgia
- Brisco Gets 4 Years for Identity Theft Scam · Georgia
- Navy Contractors Joshua Rice, Roberto Rubio Arrested in Bomb Hoax Scam · California
Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime