Virginia Ex-Navy Manager Gets 96 Months for Bribes

Grimy Times Exclusive: A former U.S. Navy Military Sealift Command manager has been handed a 96-month prison sentence for receiving bribes.

Kenny E. Toy, 54, the former Afloat Programs Manager at the United States Navy Military Sealift Command, pleaded guilty to one count of bribery on February 12, 2014. According to the statement of facts filed with Toy’s plea agreement, Toy was employed as the Afloat Programs Manager in the N6 Command, Control, Communication, and Computer Systems Directorate at the Military Sealift Command, which is the leading provider of transportation for the United States Navy.

Toy admitted to accepting monthly cash bribes of approximately $3,000, as well as a flat screen television and a paid vacation to the Outer Banks in North Carolina, from co-conspirators Dwayne A. Hardman, Roderic J. Smith, Michael P. McPhail and Adam C. White, all of whom were employed at a government contracting company referred to as Company A in court documents. Toy also admitted to accepting a $50,000 cash bribe in May 2009 from Hardman and another co-conspirator, Timothy S. Miller, both of whom were employed at a government contracting company referred to as Company B in court documents.

In exchange for the bribes, Toy provided favorable treatment to Company A and Company B in connection with Military Sealift Command related business. Toy was also ordered to serve a supervised release term of three years following his prison sentence, and ordered to forfeit $100,000.

Earlier this year, four other individuals pleaded guilty in connection with the bribery scheme. On February 18, 2014, Hardman, the co-founder of Company A and Company B, pleaded guilty to providing bribes to Toy and Miserendino. On February 19, 2014, McPhail, a former employee at Company A, pleaded guilty to conspiracy to commit bribery. On April 4, 2014, White, a former vice president at Company A, pleaded guilty to conspiracy to commit bribery. On March 5, 2014, Smith, the former president of Company A, pleaded guilty to conspiracy to bribe public officials.

On June 23, 2014, United States District Judge Henry Coke Morgan sentenced Smith to serve 48 months in prison followed by one year of supervised release and ordered him to forfeit $175,000. On May 23, 2014, a grand jury in the Eastern District of Virginia indicted Miserendino and Timothy S. Miller, a businessman whose company sought contracting business from the Military Sealift Command.

The investigation into the bribery scheme was led by the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, the Naval Criminal Investigative Service (NCIS) Atlantic Operations, and the FBI’s Norfolk Field Office.