NORFOLK, Va. (WVEC) — A naval officer from Virginia Beach pleaded guilty Monday to his role in a fraud scheme in which he took $2.7 million from the Navy. He also acknowledged that he lied on his federal income tax return from four years ago.
The U.S. Attorney's Office for the Eastern District of Virginia said Randolph M. Prince, 45, defrauded the Navy out of more than $2.7 million through a scheme in which he steered government contracts to sham companies that his friend created and ran. Investigators said Prince used his authority as a member of his Navy unit's supply staff in order to do it.
Prince took advantage of his position to direct purchases to the sham companies, which had been opened for the sole purpose of receiving government contracts from Prince.
When one of these sham companies received a contract, Prince, alongside other people, would generate fraudulent documentation to suggest the company had honored its end of the bargain.
The Navy would then pay the company with this documentation in hand.
The sham companies never provided the Navy with anything. They just distributed the Navy money amongst Prince and his associates.
Prince pleaded guilty to wire fraud and making a false statement in connection with his 2014 tax return.
He faces a maximum of 20 years in prison when sentenced on Dec. 3.
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