Virginia-Based Defense Contractor To Pay $2.25 Million Fine for Bribery Conspiracy

SAN DIEGO – Cambridge International Systems, Inc., a defense contractor headquartered in Arlington, Virginia, was sentenced in federal court today to pay a criminal fine of $2,250,000 after admitting that it participated in a scheme to bribe a public official at Naval Information Warfare Center in exchange for winning and maintaining hundreds of millions of dollars in government contracts.  

According to Cambridge’s April 2024 plea agreement, the company – acting through its former Executive Vice President Russell Thurston and an unnamed employee – gave various things of value to former Naval Information Warfare Center employee James Soriano, including jobs for Soriano’s family and friends, meals, and a ticket to the 2018 MLB All Star Game held at Nationals Park in Washington, D.C.

In return, Soriano, acting in his position as a contracting officer’s representative at the Naval Information Warfare Center, ensured that Cambridge was awarded two large task orders. Soriano further ensured Cambridge was able to capture a steady stream of government funds by approving various additional projects on the task orders, including more than 70 projects on one of the task orders.

As a result of the conspiracy, the government obligated more than $32 million on one of the task orders and more than $100 million on the other. Although $132 million was obligated, only $1,672,102.23 had been paid out by the government at the time the fraud was uncovered.

Since pleading guilty, Cambridge was ordered to forfeit $1,672,102.23. The fine imposed today further penalizes the company for its criminal scheme, while acknowledging its diminished financial condition as a result of its guilty plea. The company was also placed on a two-year period of probation, during which time it will be closely monitored. As a condition of probation, the company is also setting up a fund to benefit the family of a slain employee.

“With a fine of over $2 million, the court sent a message to government contractors,” said U.S. Attorney Tara McGrath. “Cheating the system doesn’t pay out in the end.”

“Cambridge International Systems’ sentencing brings closure to its part in an illicit scheme to enrich the company and others with the assistance of corrupt government officials,” said Bryan D. Denny, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Western Field Office. “This outcome, and others associated with this investigation and prosecution, should serve as a warning to those who would subvert the proper government acquisition process for their own personal gain at the expense of the American taxpayer and our nation’s warfighters.”

“The sentencing of Cambridge International Systems, Inc. should serve as an example and a warning to other companies seeking defense contracts that corrupting the acquisition process will not be tolerated,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “The culture of complicity demonstrated by Cambridge International is just as detrimental to national security as actively handing over bribes, and IRS CI remains committed to working with our law enforcement partners to protect our warfighters from such corruption.”

“Cambridge deserves to be held accountable for perpetuating an illegal bribery scheme that undermined the fairness of the defense procurement process,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS appreciates our investigative partners for their continued efforts to protect our nation's warfighters from the threats posed by such corruption.”

Thurston is separately charged with conspiracy to commit bribery and bribery in case number 24CR341-TWR; a motion hearing is scheduled for April 11, 2025. Soriano pleaded guilty to conspiracy to commit bribery and bribery in case numbers 23CR2282-TWR and 24CR341-TWR; his sentencing is scheduled for May 9, 2025.

DEFENDANT                                                           Case Number 24-cr-759-TWR

Cambridge International Systems, Inc.                                  Arlington, VA

SUMMARY OF CHARGES

Conspiracy to Commit Bribery - Title 18, U.S.C., Section 371

Maximum penalties: Five years corporate probation; a maximum $500,000 fine or twice the gross gain or loss resulting from the offense, whichever is greatest

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Small Business Administration – Office of Inspector General

Internal Revenue Service Criminal Investigation

Department of Health and Human Services – Office of Inspector General

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