Former Navy Comptroller Sentenced for Accepting Illegal Gratuities

NORFOLK, Va. – A former comptroller for the Norfolk Ship Support Activity (NSSA) was sentenced today to 40 months in prison for conspiracy to receive gratuities by a public official.

According to court documents, William R. Hutsenpiller, 57, of Mount Dora, Florida, oversaw the $200 million operating budget for the NSSA while serving as the civilian GS-15 Financial Department Head/Comptroller from October 2009 through November 2013. During this time, Hutsenpiller conspired with others to essentially force a government prime contractor to use a specified subcontractor—Global Services Corporation, based in Fayetteville, North Carolina—that he knew would collaborate with him to misuse government funds. As part of the scheme, Hutsenpiller directed the prime contractor to pass government funds to Global, a defense subcontractor, and in turn, Hutsenpiller directed Global to withhold unexpended funds that should have been returned to the government or to the prime contractor.

From 2010 through 2014, Hutsenpiller made numerous requests that Global provide him with various items of value and services for his personal use, which Global agreed to purchase with government funds. The gratuities that Global provided to Hutsenpiller included a variety of personal electronic items and accessories for Hutsenpiller and his family, such as cell phone service and accessories, multiple iPads, a computer, home thermostat, and streaming television boxes.

On April 10, 2017, Hutsenpiller pleaded guilty to receiving $35,870.69 in gratuities from Global Services Corp. As part of today’s sentencing, Hutsenpiller was ordered to pay a Restitution Judgment of $35,870.60, and to pay a forfeiture amount of $35,000.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after sentencing by the U.S. District Judge Rebecca B. Smith. Assistant U.S. Attorneys Alan Salsbury and Stephen Haynie prosecuted the case.

The Defense Contract Audit Agency (DCAA) provided significant assistance with this case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-43.