Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714, Michelle Wasserman (619) 546-8431, Valerie Chu (619) 546-6750, and David Chu (619) 546-8266
NEWS RELEASE SUMMARY - June 29, 2022
SAN DIEGO - Former U.S. Navy Captains David Newland, James Dolan and David Lausman and former Commander Mario Herrera - all of whom once served in the Navy’s Seventh Fleet - were convicted on all counts by a federal jury today of accepting bribes from foreign defense contractor Leonard Francis. The jury did not reach a verdict on the charges against Rear Admiral Bruce Loveless.
Nine members of the U.S. Navy’s Seventh Fleet - including the four defendants convicted today - were indicted by a federal grand jury in March 2017. Four other defendants pleaded guilty before trial.
During the trial, three U.S. Navy officials - Commander Stephen Shedd, former Lieutenant Commander Edmond A. Aruffo, and U.S. Navy Captain Jesus Vasquez Cantu - and former Lieutenant Commander Alexander Bryan Gillett of the Royal Australian Navy, testified about the alleged bribery scheme.
This long-running fraud and bribery investigation has resulted in federal criminal charges against 34 U.S. Navy officials, defense contractors and the GDMA corporation. Twenty-nine previously pleaded guilty. With today’s four convictions, 33 defendants have now been convicted of various fraud and corruption offenses.
U.S. District Judge Janis L. Sammartino set a status hearing for July 21, 2022, at 2 p.m. A sentencing hearing is scheduled for Oct. 11, 2022, at 9 a.m.
DEFENDANTS Case Number: 17CR0623-JLS
Captain David Newland Age 60 San Antonio, Texas
Chief of Staff to the Commander of the Seventh Fleet
Captain James Dolan Age 58 Gettysburg, Pennsylvania
Assistant Chief of Staff for Logistics for the Seventh Fleet
Captain David Lausman Age 62 The Villages, Florida
Commanding Officer of U.S.S. Blue Ridge; Commanding Officer of U.S.S. George Washington
Commander Mario Herrera Age 48 Helotes, Texas
Fleet Operations and Schedules Officer for the Seventh Fleet
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: Five years in prison, a $250,000 fine, or twice the gross pecuniary gain or twice the gross pecuniary loss, whichever is greater
*All defendants
Bribery, in violation of 18 U.S.C. § 201
Maximum Penalty: Fifteen years in prison, a $250,000 fine or twice the gross pecuniary gain or gross pecuniary loss from the offense, or three times the monetary equivalent of the thing of value, whichever is greater
*All defendants
Obstruction of Justice, in violation of 18 U.S.C. § 1519
Maximum Penalty: Twenty years in prison, a $250,000 fine
*Lausman
Conspiracy to Commit Honest Services Wire Fraud, in violation of 18 U.S.C. §§ 1349, 1346, 1343
Maximum Penalty: Twenty years in prison, a $250,000 fine
*All defendants
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Source: U.S. Department of Justice, Office of the United States Attorneys
