# Navy Sentences Veteran for $9M Contract Fraud

A Navy veteran, Cory Taylor Wright, was sentenced to three years in federal prison and ordered to pay over $9 million in restitution for orchestrating a bid-rigging and contract steering scheme that defrauded the United States Navy. The fraudulent activities, involving insider Juan Carlos Aragon, spanned from 2016 to 2023 and targeted contracts managed by the Navy's Mobile Utilities Support Equipment division at the Port Hueneme Naval Base in California. This case underscores the critical need for enhanced oversight and controls to prevent insider influence and protect the integrity of federal procurement processes.

- **Why this matters:** Procurement professionals should be vigilant about risks of insider threats and bid-rigging schemes that can compromise competitive contracting and lead to significant financial losses.
- Agencies managing contracts, especially in defense and utilities support, may need to strengthen compliance monitoring and implement stricter safeguards against collusion.
- Contractors should ensure transparent bidding practices and be aware that fraudulent activities can result in severe legal consequences, including criminal prosecution and restitution.
- This case highlights the importance of continuous training and awareness programs for contracting officers and procurement staff to detect and prevent procurement fraud.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Regulatory Compliance
**Published:** September 22, 2026

### Government Entities
- United States Navy (Navy)
- Department of Justice (DOJ)

### Vendors
- C&C Power Solutions LLC (Fraudulent contractor)

### Key Quotes
> This was not an isolated lapse in judgment or a fraud of limited duration. (Wright) repeatedly participated in deceptive conduct designed to undermine a competitive federal procurement process.
> — Prosecutors in sentencing memorandum

### Sources
- [Veteran sentenced for defrauding Navy out of $9 million | KTLA](https://ktla.com/news/ventura-county/veteran-sentenced-for-defrauding-navy-out-of-millions) - KTLA