Defense Contractor Executive Sentenced in Bribery Scheme

SAN DIEGO - Russell Thurston, a former executive vice president at Cambridge International Systems, Inc., a defense contractor headquartered in Arlington, Virginia, was sentenced in federal court today to 18 months custody, followed by 12 months home confinement, after admitting that he participated in a bribery scheme with other Cambridge employees and former Naval Information Warfare Center employee James Soriano.

According to Thurston's plea agreement, Cambridge - acting through Thurston and multiple other Cambridge employees - gave various things of value to Soriano, including expensive meals at restaurants in San Diego; a ticket to the 2018 Major League Baseball All Star Game held at Nationals Park in Washington, D.C.; and a job at Cambridge for Soriano's friend, Liberty Gutierrez. According to Gutierrez's plea agreement, Gutierrez did minimal work at Cambridge and gave Soriano $2,000 a month from her Cambridge salary.

In return, Soriano, acting in his position as a contracting officer's representative at Naval Information Warfare Center, influenced the procurement process to ensure that Cambridge was awarded two large task orders. Soriano further ensured that Cambridge was able to capture a steady stream of government funds by influencing a series of projects on those task orders to be approved. According to Cambridge's plea agreement, as a result of the conspiracy, the government obligated more than $32 million on one of the task orders and over $100 million on the other.

Soriano also allowed Cambridge employees to draft various procurement documents for him, even when Cambridge was competing for contracts against other bidders. Thurston and Soriano also worked together to remove document properties so that other government employees would not know of Cambridge's involvement in drafting the documents.

Cambridge was separately charged and pleaded guilty to conspiracy to commit bribery in 24-cr-00759-TWR. Cambridge was ordered to forfeit the $1,672,102.23 in profits it obtained from the bribery conspiracy and pay a $2.25 million fine.

According to Thurston's plea agreement, Thurston received periodic pay bonuses from Cambridge - which totaled between $150,000 and $250,000 - based on the profits Cambridge received from the bribery conspiracy.

"Defense contracting is built on trust, integrity, and a solemn duty to protect the nation, but this defendant and his accomplices shattered that trust," said U.S. Attorney Adam Gordon. "Today's sentence makes clear that those who corrupt the system for personal gain will face decisive consequences."

"The sentencing of Mr. Thurston for his role in subverting the Department of Defense's (DoD) procurement process should act as a deterrent to those seeking to enrich themselves through fraudulent contracting practices," said John E. Helsing, Acting Special Agent in Charge for the DoD Office of Inspector General, Defense Criminal Investigative Service, Western Field Office. "DCIS remains committed to working jointly with the United States Attorney's Office and our law enforcement partners to investigate public corruption affecting the DoD and the American taxpayer."

"Today's sentencing of Russell Thurston is a reminder that corruption in the federal contracting process carries serious consequences," said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. "By conspiring to bribe a government official, Mr. Thurston not only violated the law - he also undermined the integrity of a system meant to serve our military and protect taxpayer dollars. IRS Criminal Investigation remains committed to working with our law enforcement partners to expose and dismantle these schemes, and to ensure that those who abuse positions of trust are held fully accountable."

"Through his misdeeds, Mr. Thurston undermined the integrity of the Department of the Navy's procurement process in order to line his own pockets with millions of dollars in contract awards," said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. "NCIS remains steadfast in our commitment to work with our partners to investigate and deter public corruption that would bring discredit to the Navy and Marine Corps."

"This case demonstrates our commitment to working with our law enforcement partners to root out fraud and corruption in government contracting," said Tim Larson, SBA OIG Western Region Acting Special Agent in Charge. "By exploiting the 8(a) program this scheme not only defrauded the government but also compromised the integrity of the program designed to uplift deserving entrepreneurs. I would like to thank the U.S. Attorney's Office and law enforcement partners for their continued pursuit of justice and holding accountable those who engage in fraudulent schemes."

This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Swan and Carling E. Donovan.

DEFENDANT Case Number 24-cr-0341-TWR-2

Russell Thurston Age: 52 Mt. Pleasant, SC

SUMMARY OF CHARGES

Conspiracy to Commit Bribery - Title 18, U.S.C., Section 371

Maximum penalty: Five years in prison; a maximum $250,000 fine or twice the gross gain or loss resulting from the offense, whichever is greatest; and a term of supervised release up to three years.

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Small Business Administration - Office of Inspector General

Internal Revenue Service Criminal Investigation

Department of Health and Human Services - Office of Inspector General

If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098