Contractors in North Island Million-Dollar Bribery Case Get 3 Years in Prison

Two Poway-based defense contractors were each sentenced Monday to three years in federal prison and ordered to pay restitution for their roles in a wide-ranging bribery scheme at Naval Air Station North Island.

Robert Ehnow, of Coronado, owner of L&N Industrial Tool & Supply Inc., and Joanne Loehr, owner of Centerline Industrial Inc., are among 11 defendants who have been sentenced in the case, according to the U.S. Attorney's Office.

Prosecutors said the defendants plied Navy officials at the base with cash, retail gift cards, flat-screen televisions and other personal benefits in exchange for millions of dollars of government orders. The recipients also submitted fraudulent invoices.

“These defense contractors told lies, and gave bribes, to get millions of dollars in business from the United States Navy,” said U.S. Attorney Laura Duffy. “The sentences handed down today send a message that this corruption will not be tolerated.”

A jury convicted Ehnow and Loehr of bribery and conspiracy in March, but also acquitted them of other bribery counts.

Five Navy officials – four connected with maintaining readiness on E-2 and C-2 aircraft – and four employees of defense contractors were separately convicted in the case.

The U.S. Attorney's Office said the Navy defendants received around $1 million in cash, goods and services between them.

Additionally, Loehr's company was convicted as a corporation and ordered to surrender $1.8 million to the government. L&N Industrial Tool & Supply is in bankruptcy. U.S. District Judge Larry Burns ordered Loehr to pay $300,000 in restitution, and Ehnow to hand over nearly $760,000.

– City News Service