Co-Founder of Government Contracting Company Pleads Guilty to Illegal Gratuity Charge
NORFOLK, Va. – Timothy S. Miller, 58, a co-founder of a Chesapeake, Virginia, government contracting company, pleaded guilty today to providing illegal gratuities to two public officials working for the United States Navy Military Sealift Command.
United States Attorney Dana J. Boente of the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office; Special Agent in Charge Susan Triesch of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office; and Special Agent in Charge Royce E. Curtin of the FBI Norfolk Field Office made the announcement today after Miller’s guilty plea was accepted by United States Magistrate Judge Lawrence R. Leonard of the Eastern District of Virginia.
According to a statement of facts filed with the plea agreement, in February 2009, Miller, along with his business partner, Dwayne A. Hardman, co-founded a government contracting company that was designed to provide telecommunications support to the Military Sealift Command, which is the leading provider of transportation for the U.S. Navy.
At his plea hearing, Miller admitted that he provided illegal gratuities to two public officials for, or because of, favorable official acts. On May 12, 2009, Miller provided $30,000 in cash to Kenny E. Toy, the former Afloat Programs Manager for the Military Sealift Command’s N6 Command, Control, Communication, and Computer Systems Directorate, and Scott B. Miserendino, Sr., a government contractor who worked with Toy at the Military Sealift Command Headquarters. On May 14, 2009, Miller agreed that another $20,000 cash payment be delivered to Toy and Miserendino by Hardman.
According to Miller’s statement of facts, Toy exercised substantial influence over the Military Sealift Command contracting process, by creating and executing multi-million dollar budgets, obtaining funding for projects, developing and having access to sensitive information, and requesting that subcontract work be awarded to particular companies. As a result of the $50,000 payment, Miserendino and Toy performed various official acts to assist Miller’s company. Indeed, in 2009, Miller’s company received approximately $2.5 million in business from the Military Sealift Command.
As a condition of his plea agreement, Miller has agreed to forfeit $167,000.
Miller is scheduled to be sentenced on November 7, 2014. He faces a maximum penalty of 2 years in prison.
Earlier this year, six other individuals pleaded guilty in connection with the bribery scheme. On February 12, 2014, Toy pleaded guilty to bribery, and he was sentenced on July 29, 2014, to 96 months in prison and ordered to forfeit $100,000. On February 18, 2014, Hardman pleaded guilty to bribery, and he was sentenced on July 9, 2014 to 96 months in prison and ordered to forfeit $144,000. On February 19, 2014, Michael P. McPhail pleaded guilty to conspiracy to commit bribery, and he was sentenced on August 5, 2014, to 36 months in prison and ordered to forfeit $57,000. On March 5, 2014, Roderic J. Smith pleaded guilty to conspiracy to commit bribery, and he was sentenced on June 23, 2014, to 48 months in prison and ordered to forfeit $175,000. On April 4, 2014, Adam C. White pleaded guilty to conspiracy to commit bribery, and he was sentenced on July 11, 2014, to 24 months in prison and ordered to forfeit $57,000. On August 12, 2014, Scott B. Miserendino, Sr. pleaded guilty to conspiracy to commit bribery and accepting bribes and is scheduled to be sentenced on November 7, 2014.
The case was investigated by the FBI, NCIS, and DCIS. The case was prosecuted by Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia and Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section.
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.
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