Former Navy Warehouse Manager Pleads Guilty to Stealing Over $2.5 Million in Goods from the U.S. Navy

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Former Navy Warehouse Manager Pleads Guilty to Stealing Over $2.5 Million in Goods from the U.S. Navy

The following press release was published by the U.S. Department of Justice, Office of the United States Attorneys on Nov. 13, 2019. It is reproduced in full below.

Assistant U. S. Attorney Michelle L. Wasserman (619) 546-8431

NEWS RELEASE SUMMARY - Nov. 13, 2019

SAN DIEGO - Herbert Gutierrez, former warehouse manager at the U.S. Navy Military Sealift Command Warehouse in San Diego, pleaded guilty today to stealing more than $2.5 million worth of goods from the Navy warehouse where he worked at the time.

According to his plea agreement, Gutierrez stole the items over a nine-month period, from July 2018 to April 2019. He advertised items from the warehouse for sale online, including through such websites as eBay, and then allowed private individuals into the Military Sealift Command (MSC) warehouse yard during work hours and after hours to take the government property, load it onto trucks, and haul it away.

For example, in February 2019, Gutierrez allowed a utility truck and a tractor-trailer to enter the MSC warehouse after hours - and when they left, the vehicle contained over $1 million in stolen copper nickel tubing.

That same month, Gutierrez sold numerous Caterpillar parts from the warehouse to a company he found online. Once again, Gutierrez allowed a private freight company to enter the MSC warehouse yard and load the items, which filled four pallets. He also created fraudulent paperwork to conceal his criminal activity.

In April 2019, Gutierrez again allowed two individuals to enter the MSC warehouse in daylight, and he loaded up their vehicle with stolen government property, accepting thousands of dollars in cash in exchange. This time, however, the two men were - unbeknownst to Gutierrez - undercover agents.

“Our U.S. Navy warehouses are meant to support our service members at home and overseas, not to serve as a piggybank for unscrupulous individuals," said U.S. Attorney Robert Brewer. “This was an audacious crime that was even more troubling because it was committed by an insider." Brewer praised prosecutor Michelle Wasserman and NCIS agents for their dedication to this case.

Gutierrez was paid for the stolen goods in cash and via PayPal. Gutierrez admitted in his plea agreement that the total aggregate value of the items that he stole from the United States and resold for personal profit was $2,536,293.63.

DEFENDANT Case Number 19CR4552-W

Herbert Gutierrez Age: 54 San Diego, CA

SUMMARY OF CHARGES

Theft of Government Property - Title 18, U.S.C., Section 641

Maximum penalty: 10 years’ imprisonment and $250,000 fine

AGENCY

Naval Criminal Investigative Service

Source: U.S. Department of Justice, Office of the United States Attorneys

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