“This was not an isolated lapse in judgment or a fraud of limited duration,” prosecutors said in a sentencing memorandum. “[Wright] repeatedly participated in deceptive conduct designed to undermine a competitive federal procurement process.”
The scheme
According to the DOJ, during his time in the Navy, Wright worked for the force’s Mobile Utilities Support Equipment division (MUSE). The division is responsible for providing management, technical and logistical support for large systems, including large generators for U.S. military operations worldwide. To do this, MUSE engages with prime contractors to procure goods and services, usually by tasking orders to subcontractors.
In December 2016, when Wright was nearing his retirement, he and another Navy enlistee, 48-year-old Juan Carlos Aragon agreed to create a Georgia-based company called C&C Power Solutions LLC (CCP). Aragon had also held various positions at MUSE during his time in the Navy.
The pair founded the company with the agreement that Aragon would be a 50% partner when he retired from the Navy. According to the DOJ, he told Wright he would ensure CCP received Navy contracts. In exchange, Wright paid Aragon thousands of dollars in kickback payments and other benefits.
To initially fund their business, Aragon caused prime and subcontractors to make payments to CPP for products and services the company never provided. Once operational, Wright and Aragon engaged in a bid-rigging scheme to ensure they received subcontracts from a prime contractor.
According to the DOJ, Wright also generated false and fraudulent invoices claiming CCP had completed work it never did. This caused the Navy to issue payments based on the false information Wright provided.
Starting in September 2017, the pair conspired to secure CCP as MUSE’s next prime contractor — a deal they knew would be worth tens of millions of dollars. Wright and Aragon worked together to create bogus documents to obtain the contract and hid Aragon’s role and financial interest in CCP from the Navy.
The company was awarded the lucrative contract in July 2019. From that time until early 2023, Wright continued to submit fake documents to the Navy, including invoices to obtain money that his company was not entitled to receive.
