NORFOLK, Va. (WAVY) - Two men were indicted in Norfolk Wednesday for a contracting kickback scheme related to military contracts.
U.S. Attorney Neil H. MacBride announced the indictment after a the defendants -- William Wellington Hooper, Jr., 46, and Harry Siegfried Rahn, Jr., 52, -- appeared before a federal grand jury on charges of conspiracy, providing and accepting kickbacks relating to government contracts, wire fraud and false statements.
The indictment indicated that Hooper of Virginia Beach and Rahn of San Francisco conspired in a contracting kickback scheme between July 2010 and December 2012, during which Rahn paid about $72,000 in kickbacks to Hooper.
At the time, Hooper was a manager at Oceaneering International, Inc. of Chesapeake when the Naval Sea System Command awarded a cost-plus fixed fee contract to the company. Two weeks after the contract was made, Rahn -- a long-time acquaintance of Hooper -- registered Rahn Systems International, LLC in San Francisco, and Hooper began recommending purchase orders pertaining to the Navy contract to Rahn's company as a subcontractor.
Over four months in 2011 -- while the contracts were in working order -- Rahn mailed 21 U.S. Postal money orders totaling over $18,000 to Hooper and Hooper's landlord in Virginia Beach.
Hooper left Oceaneering in November 2011 and began working as the Director of Fabrication for Steel America, a division of Colonna's Shipyard, Inc. in Norfolk.
In that position, Hooper began recommending subcontracts to Rahn's company again, mostly related to commercial contracts. During that scheme, Rahn's company wired more than $58,000 in 11 money wire transactions to a bank account opened by Hooper in February 2012.
If convicted, both defendants face a maximum of five years in prison for conspiracy, 10 years on each count of illegal kickbacks, 20 years on each count of wire fraud, and five years for false statements.
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