Navy contract kickback scheme lands two men in prison
By TIM MCGLONE | The Virginian-Pilot | Published: June 21, 2014
NORFOLK, Va. — Two friends were sentenced to federal prison Friday for their roles in a kickback scheme involving Navy contracts.
Both defendants, William W. Hooper and Harry S. Rahn, expressed remorse, apologized and asked for leniency, including no prison time. U.S. District Judge Rebecca Beach Smith balked at the idea.
"Frankly, the nature and circumstances of the offense weigh heavily against you," she told Rahn. "It did not stop until you were caught by the authorities. The court wishes you were thinking about this every day with remorse before you were caught."
She sentenced Rahn first, to a year and one day in federal prison plus a $3,000 fine and 150 hours of community service. She later sentenced Hooper to 13 months in prison, finding him slightly more culpable than Rahn, and a $3,000 fine.
Prosecutors said Rahn paid Hooper $37,000 in kickbacks in exchange for getting Navy contracts through companies Hooper worked for. Prosecutors revised the original amount of $72,000.
Rahn, 53, of San Francisco, wrote a letter to the judge stating that he had no excuses for his actions, but is confident he on "the right path" now.
Hooper, 47, of Virginia Beach, told the judge he was ashamed.
"I screwed up. It's my fault," he said.