Navy Petty Officer Gets 1.5 Years for Stealing $850,000 in Supplies

A federal court in Rhode Island has sentenced a former U.S. Navy petty officer to 1.5 years in prison over his role in a criminal gang that stole hundreds of thousands of dollars' worth of gear from Navy warehouses on the East Coast. According to prosecutors, the equipment was intended for the use of the conspirators' fellow servicemembers, but was siphoned off and sold to buyers in China, Russia and about 50 other foreign nations. 

Former PO1 Richard Allen, 53, pleaded guilty in August to six counts of money laundering and one count of conspiracy. According to his plea agreement, Allen was stationed at Naval Weapons Station Yorktown in Williamsburg, Virginia, a facility that stores and distributes weaponry and supplies for warships on the Eastern Seaboard. He used his warehouse access to steal more than $850,000 worth of supplies, from uniforms and winter wear to soft body armor and goggles. Allen and his co-conspirators also made off with curious choices of lower-value items, like Navy SEAL insignia and infrared flag patches. 

All items were selected for bulk sale to customers in the U.S. and abroad: clients would tell Allen what they wanted from the warehouses and the gang would conspire to steal it. Payment was often made via Paypal, outside of the banking system. The conspirators then transferred funds to their bank accounts in sums less than $10,000 in hopes of avoiding scrutiny. Even after he retired from active duty, Allen continued his involvement in the conspiracy and continued to receive payments from its activities. 

The stolen goods went to customers in a bewildering variety of jurisdictions, from New Zealand to Norway to the Philippines, Chile, South Korea, Hong Kong and Kazakhstan. 

“Americans – especially the men and women who have served in uniform – deserve public employees who do their jobs honestly and with integrity,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Richard Allen failed to do both when he selfishly took advantage of his position with the Navy to commit fraud, cheating both his fellow officers and taxpayers."