Defense Contractor Pleads Guilty to Stealing Medical Equipment Intended to be Shipped to Deployed Marines

Assistant U.S. Attorneys W. Mark Conover (619) 546- 6763  and Michelle L. Wasserman (619) 546-8431

NEWS RELEASE SUMMARY – March 14, 2017

SAN DIEGO – John Montano, a former Camp Pendleton defense contractor, pleaded guilty today to conspiring to steal over $250,000 worth of medical equipment that the military had planned to ship overseas to treat injured Marines.

Montano and his co-conspirators (many of whom have already pleaded guilty) worked in warehouses run by 1st Medical Logistics Company (“1st MEDLOG”) aboard USMC Camp Pendleton. 1st MEDLOG is the unit responsible for maintaining medical equipment and shipping necessary medical items to combat forces throughout the world. By virtue of his employment as a civilian defense contractor, Montano had access to sophisticated, expensive medical equipment stored at 1st MEDLOG warehouses. In his plea agreement, Montano admitted to participating in a conspiracy to steal expensive medical equipment from 1st MEDLOG, including anesthesia machines, autoclaves, ventilators, ultrasound machines, defibrillators and laryngoscopes among other items. Montano further admitted that he used his access to and knowledge of this medical equipment to help his co-conspirators steal the items from the warehouse. His co-conspirators then secretly removed the items from the base and sold them on the open market.

Acting U.S. Attorney Alana W. Robinson would like to remind the public that these charges were the result of ongoing efforts to root out corruption among our area defense contractors. She encouraged the public to contact the Naval Criminal Investigative Service (NCIS) at 1-800-264-6485 or www.ncis.navy.mil if they have information about the theft of equipment from Camp Pendleton or other Navy installations.

As part of his plea, Montano agreed to a restitution order of $250,000 to repay the U.S. Marine Corps for the value of the medical equipment that he stole. Montano will appear for sentencing on [DATE], 2017, at [TIME] before U.S. District Judge Cathy Ann Bencivengo.

DEFENDANTS                            Case Number: 16CR2053-CAB

John Montano                                Age: 44 Grants, New Mexico

SUMMARY OF CHARGES

Count 1: Conspiracy to Engage in Theft of Government Property, Title 18, United States Code, Section 371

Maximum penalties: 5 years in prison, $250,000 fine, term of supervised release of 3 years, restitution, and $100 special assessment.

INVESTIGATING AGENCY

Naval Criminal Investigative Service