Two former executives of a foreign defense contractor were arraigned in federal court in San Diego Monday on charges they allegedly participated in a conspiracy to submit fraudulent price quotes, claims, and invoices to the U.S. Navy in a successful effort to steal millions of dollars as part of a years-long corruption and fraud scheme.
Malaysian national Neil Peterson and Linda Raja, from Singapore, worked as chief deputies for defense contractor Glenn “Fat Leonard” Francis to fill the coffers of Glenn Defense Marine Asia at the expense of the U.S. Navy, prosecutors said.
Peterson, who served as Vice President for Global Operations for GDMA, and Raja, who worked as GDMA’s general manager for Singapore, Australia, and the Pacific Isles, made their first appearances in U.S. District Court in San Diego after their extradition from Singapore.
Magistrate Judge Jan Adler ordered that the defendants be detained pending trial.
An indictment unsealed last month alleges that Peterson and Raja submitted false claims of well over $5 million to the U.S. Navy.
Peterson, 38, and Raja, 43, also worked to perpetuate and cover up their fraud by consistently misrepresenting to the U.S. Navy the cost of providing services to its ships in Asia, even going so far as to submit false price quotes from non-existing companies, on letterhead created from graphics cut and pasted from the internet, according to the indictment.
Peterson and Raja are each charged with conspiracy to defraud the United States, conspiracy to commit wire fraud and multiple counts of making false claims.
–City News Service
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