Russell Thurston, a former executive vice president at Cambridge International Systems, Inc., was sentenced in federal court to 18 months in custody and 12 months of home confinement for his role in a bribery scheme involving the defense contractor and a former Naval Information Warfare Center employee.
According to court documents, Thurston and other employees of Cambridge provided various benefits to James Soriano, who worked as a contracting officer’s representative at the Naval Information Warfare Center. These included expensive meals in San Diego, a ticket to the 2018 Major League Baseball All Star Game in Washington, D.C., and employment for Soriano’s friend Liberty Gutierrez. Gutierrez later admitted she did minimal work at Cambridge but paid Soriano $2,000 per month from her salary.
In exchange for these favors, Soriano influenced the procurement process so that Cambridge was awarded two significant task orders. He also ensured continued funding by approving projects under those orders. The government obligated more than $32 million on one task order and over $100 million on another as a result of this arrangement.
Cambridge employees were allowed by Soriano to draft procurement documents even while competing for contracts. Thurston and Soriano also collaborated to conceal Cambridge’s involvement by removing document properties before submission.
Cambridge International Systems pleaded guilty separately to conspiracy to commit bribery and was ordered to forfeit over $1.67 million in profits gained from the scheme and pay a fine of $2.25 million.
Thurston received periodic bonuses from Cambridge totaling between $150,000 and $250,000 based on profits derived from the bribery conspiracy.
“Defense contracting is built on trust, integrity, and a solemn duty to protect the nation, but this defendant and his accomplices shattered that trust,” said U.S. Attorney Adam Gordon. “Today’s sentence makes clear that those who corrupt the system for personal gain will face decisive consequences.”
John E. Helsing of the Defense Criminal Investigative Service stated: “The sentencing of Mr. Thurston for his role in subverting the Department of Defense’s (DoD) procurement process should act as a deterrent to those seeking to enrich themselves through fraudulent contracting practices… DCIS remains committed to working jointly with the United States Attorney’s Office and our law enforcement partners to investigate public corruption affecting the DoD and the American taxpayer.”
Special Agent Tyler Hatcher from IRS Criminal Investigation added: “Today’s sentencing of Russell Thurston is a reminder that corruption in the federal contracting process carries serious consequences… By conspiring to bribe a government official, Mr. Thurston not only violated the law – he also undermined the integrity of a system meant to serve our military and protect taxpayer dollars…”
Greg Gross from NCIS Economic Crimes Field Office commented: “Through his misdeeds, Mr. Thurston undermined the integrity of the Department of the Navy’s procurement process in order to line his own pockets with millions of dollars in contract awards… NCIS remains steadfast in our commitment…”
Tim Larson from SBA OIG Western Region said: “This case demonstrates our commitment… By exploiting the 8(a) program this scheme not only defrauded the government but also compromised the integrity of [a] program designed to uplift deserving entrepreneurs…”
Assistant U.S. Attorneys Patrick C. Swan and Carling E. Donovan prosecuted this case.
Thurston faced charges including conspiracy to commit bribery under Title 18 U.S.C., Section 371; penalties can include up to five years imprisonment or fines up to twice any gross gain or loss resulting from such offenses.
Multiple agencies investigated this case including Defense Criminal Investigative Service (DCIS), Naval Criminal Investigative Service (NCIS), Small Business Administration – Office of Inspector General (SBA OIG), Internal Revenue Service Criminal Investigation (IRS CI), and Department of Health and Human Services – Office of Inspector General.
