MECHANICSBURG, Pa. — A Florida man will serve one month of probation and six months of house arrest for falsely billing U.S. Naval Supply Systems Command in Mechanicsburg for work he never completed, according to U.S. Attorney John C. Gurganus.
Raymond Lofthouse, 59, was also ordered to pay $60,000 in restitution by U.S. District Court Judge Sylvia H. Rambo, Gurganus said.
According to Gurganus, Lofthouse was awarded a $60,000 contract for to repair three electric motors for the Navy. He billed the Navy for the contract, knowing the work was not complete -- and then never completed the work.
"The Department of Defense Office of the Inspector General's Defense Criminal Investigative Service prioritizes investigations involving contractors that submit false claims to the DoD for work that was not performed," stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Today’s sentencing demonstrates our commitment to working with the Naval Criminal Investigative Service and the United States Attorney’s Office for the Middle District of Pennsylvania to hold individuals accountable for defrauding the DoD."
“Mr. Lofthouse jeopardized the safety of our sailors and wasted valuable taxpayer money by falsely claiming that Soldiers Supply repaired three motors critical to supporting the Auxiliary Machine Cooling Water system used in the steam and electric propulsion plant on aircraft carriers,” said Special Agent in Charge Michael T. Wiest of the Northeast Field Office. “NCIS and our law enforcement partners remain committed to fully investigating allegations of procurement fraud that threaten the integrity of the Department of the Navy’s procurement process and degrade the Navy’s ability to project sea power necessary to promote regional stability, deter conflict, respond to crisis, and influence outcomes.”
The matter was investigated by the Naval Criminal Investigative Service and the Department of Defense Office of the Inspector General, Defense Criminal Investigative Service. Assistant U.S. Attorney Scott R. Ford prosecuted the case.
