Shipyard Contractor Sentenced to Prison for Stealing Almost $600,000 Worth of Computer Equipment from the U.S. Navy

NEWS RELEASE SUMMARY – July 10, 2024

SAN DIEGO – Ernesto Saldivar, a civilian contractor at General Dynamics NASSCO who was employed as part of the shipyard’s modernization efforts, was sentenced in federal court today to 18 months in prison for stealing almost $600,000 worth of computer equipment from several U.S. Navy ships.

According to court documents, from November 2022 to August 2023, Saldivar stole hundreds of military hard drives and laptops from declassified areas on ships undergoing maintenance. Saldivar then sold the stolen items on eBay. Two of the hard drives he stole contained classified military communications. The affected ships included the USS Pinckney, USS Curtis Wilbur and USS Spruance. The total value of the stolen computer equipment – including two laptops, two programmer units, four DC-DC converters, 18 power converters, and 302 hard drives – totaled $596,997.53.

During the investigation of the missing hard drives, the U.S. Army Criminal Investigation Laboratory conducted a forensic analysis on fingerprints left inside the empty hard drive trays. These interior areas of the hard drive trays could only be touched after a hard drive was removed. The prints belonged to Saldivar. Naval Criminal Investigative Service agents also traced eBay listings of some of the stolen equipment to Saldivar. And, during a court-authorized search of Saldivar’s home on August 25, 2023, NCIS agents recovered 120 of the missing hard drives, a Panasonic Toughbook laptop from the USS Pinckney with software from Integrated Voice Communications System (IVCS), several DC-DC converters traceable to the USS Pinckney, a BPM Microsystems 1410 taken from the Curtis Wilbur, and a BPM Microsystems 1710 Universal Device Programmer matching the serial number of an inventoried loss, all stored haphazardly in a shed on Saldivar’s property.

Saldivar admitted in his plea agreement that the total value of the stolen items was $596,997.53, almost all of which he was ordered to pay the United States government in restitution. The defendant was also ordered to pay back the United States Navy the $2,584.98 he incurred in payments from eBay sales of the stolen items.

Prosecutors urged the court to impose a custodial sentence, noting that the three U.S. Navy destroyers that Saldivar stole from are critical to the national defense of the United States.

At sentencing, U.S. District Judge John A. Houston repeatedly admonished Saldivar for committing a “grave breach of national security,” and noted the danger Saldivar’s criminal behavior posed to military personnel and national defense. The judge declined to impose defense’s recommended sentence of probation, stating that “if you steal from the United States Navy, you go to jail. You don’t get a walk.”

“Stealing from the military doesn’t just hurt the taxpayer, it puts our national security at risk,” said U.S. Attorney Tara McGrath. “Our armed forces rely heavily on contract employees and service members must be able to trust the civilians standing by their side.”    

“Mr. Saldivar’s criminal actions to steal nearly $600,000 worth of computer equipment from multiple U.S. Navy ships betrayed the Navy's warfighters, posed a threat to our national security, and wasted valuable taxpayer money,” said Special Agent in Charge Nicholas Carter of the NCIS Southwest Field Office. “NCIS and our partners remain committed to protecting the Department of the Navy’s assets.” 

This case was prosecuted by Assistant U.S. Attorney Sarah Goldwasser and former Assistant U.S. Attorney Michelle Wasserman.

DEFENDANT                                               Case Number 24CR532-JAH                                  

Ernesto Saldivar                                             Age: 30                                   San Diego, CA

SUMMARY OF CHARGES

Theft of Government Property – Title 18, U.S.C., Section 641

Maximum penalty: Ten years in prison and $250,000 fine

INVESTIGATING AGENCY

Naval Criminal Investigative Service

If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Inspector General Hotline at 800-424-9098.