A civilian formerly working for the U.S. Navy as a contracting supervisor in Asia was arrested Tuesday in connection with the huge bribery scandal involving Singapore-based contractor Glenn Defense Marine Asia (GDMA).
Paul Simpkins, 60, of Haymarket, Virginia, is the latest individual arrested in the case. GDMA and its owner, Leonard Glenn Francis, and six other people have pleaded guilty as part of the investigation.
A criminal complaint unsealed Tuesday said Simpkins served as a supervisor at the U.S. Navy regional contracting center in Singapore from 2005 through 2007. He managed the Defense Department’s Office of Small Business Programs from 2007 to 2012.
From 2006 to 2012, “Simpkins accepted several hundred thousand dollars in cash and wire transfers, travel and entertainment expenses, hotel rooms and the services of prostitutes,” the complaint alleged.
In return, the DOJ alleged, Simpkins allegedly helped Francis and GDMA land about $20 million in Navy contracts. Simpkins also helped GDMA in contract disputes and blocked its competitors from winning U.S. Navy business, the complaint alleged.
In early 2006, Simpkins and Francis met several times at a hotel in Singapore, according to the complaint. Francis hand-delivered over $150,000 in cash and made several wire transfers to a bank account held by Simpkins’s wife, the complaint alleged.
“To conceal the true nature of the wire transfers, Simpkins allegedly used an email account belonging to his mistress to advise Francis of the routing and account information of the bank account belonging to his wife,” the complaint alleged.
In return, Simpkins allegedly used his influence within the U.S. Navy to help GDMA win ship husbanding contracts in Thailand and the Philippines.
Simpkins also allegedly instructed a U.S. Navy official not to review invoices that GDMA submitted in connection to a recent port call in Hong Kong “after Francis complained that U.S. Navy personnel were asking questions,” the DOJ said.
Richard L. Cassin is the publisher and editor of the FCPA Blog. He can be contacted here.