Three Marine Corps civilian employees and a military contractor were sentenced on Dec. 8 for a bribery scheme involving trucking contracts, Department of Justice officials said.
Former head of the Defense Logistics Agency Transportation Office at the Marine Corps Logistics Base in Albany, Ga., Mitchell Potts, was sentenced to 10 years in prison for two counts of bribery.
Prosecutors said that Potts, alongside former lead transportation assistant Jeffrey Philpot, accepted hundreds of thousands of dollars in bribes from the Christopher Whitman, co-owner of United Logistics, to ensure the trucking company was awarded contracts from the base.
“These contracts were loaded with gratuitous requirements, such as expedited service, expensive trailers and exclusive use, which requires that freight be shipped separately from other equipment, even if that results in a truck not being filled to capacity,” DOJ officials said in a release.
Whitman then directed United Logistics employee Kelli Durham to fraudulently re-broker the loads received from the base, which she contracted to independent drivers, using fewer trucks but still charging the government for additional service requirements.
Durham then altered government–issued bills of lading, submitted false invoices for payment and faked delivery certifications to cover-up the re-brokering.
The conspiracy grossed United Logistics $37 million over four years and racked up $20 million in overcharges against the government.
Potts and Philpot also took bribes from another trucking company doing business with DLA. Potts admitted to receiving more than $275,000 in benefits including a hunting trip, home improvements, free rent, cash and meals.
Philpot accepted more than $575,000, including items like a casino trip, “a baby grand piano, a Wurlitzer jukebox, firearms and a vehicle.”
Former inventory control manager of the Distribution Management Center’s Fleet Support Division Shelby Janes helped Whitman steal more than $1 million in surplus military equipment, including bulldozers, cranes and front-end loaders. Janes received $100,000 in bribes from Whitman, prosecutors said.
Philpot received seven years for bribery, Janes received two years for bribery and Durham got six months for wire fraud. Collectively, the group also owes more than $2 million in forfeiture and restitution.
Potts, Philpot, Janes and Durham cooperated with prosecutors and testified against Whitman at trial. On Sept. 10, Whitman was sentenced to 22 years for multiple counts of bribery, honest services fraud, theft of government property and obstruction of justice and will forfeit $18.86 million.
Alongside the United Logistics co-owner, Shawn McCarty, a former DLA transportation assistant, and Bradford Newell, a former FSD contractor, were also convicted, with McCarty receiving 10 years and forfeiting $15.4 million. Newell got five years and will forfeit $513,600.
