Former Navy civilian employee expected to plead guilty for taking over $38,000 in gifts

William Hutsenpiller,a  former high-ranking civilian employee of the Navy, is expected to plead guilty to taking more than $38,000 in gifts from a North Carolina-based defense contractor, the Virginia Pilot reported. The defense contractor, Global Services Corp., is currently being investigated by the government for $13.6 million in fraud. Hutsenpiller oversaw the Norfolk Ship Support Activity's $200 million operating budget from October 2009 through November 2013.

Norfolk Ship Support Activity, now known as the Mid-Atlantic Regional Maintenance Center, oversees all maintenance work performed by private companies on Navy surface ships in the mid-Atlantic region.

Court documents say that the charges against Hutsenpiller originated from the extended relationship between himself and Global Services Corp of Fayetteville, North Carolina. The company is referred to as "Firm G" and the owner of the company is referred to by the initials "PAM" to which another document identifies as Philip A. Mearing, president and owner of Global Services Corp. (who has not been charged).

It is thought that Hutsenpiller, Mearing, and Kenneth Deines, a former Global Services executive who already pleaded guilty, conspired to coerce the new contract holder, awarded in 2010, to take on Global Services Corp. as a subcontractor.

The successful conspiracy had Hutsenpiller allow any unspent government money to stay with Global Services—a total of $5.1 million by the time he transferred to Fleet Forces Command in November 2013. $2.4 million of this money was declared to be for Hutsenpiller's retirement, despite Hutsenpiller being at the top of the federal pay scale as a GS-15.

Deines, pleaded guilty to conspiracy to defraud the government and was sentenced to 18 months in November. Kenneth Bricker, another involved with the scam, pleaded guilty to conspiracy to commit wire fraud as well and was sentenced to 4 years earlier this month. Both are cooperating with authorities.

Hutsenpiller's plea hearing is set for April 10 in U.S. District Court in Norfolk.

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