A San Diego defense contractor pleaded guilty May 16 in federal district court to conspiracy to bribe a federal official and filing a false tax return, according to the U.S. Attorney’s office.
Jesse Denome, 47, the owner of JD Machine Tech Inc. of San Diego, pleaded to the two felony counts before U.S. Magistrate Judge Cathy Ann Bencivengo, and faces maximum penalties of eight years in prison when sentenced by Judge Larry Burns on Aug. 8, said federal prosecutors.
According to court documents, Denome’s business provided goods and services to the Fleet Readiness Center Southwest at Naval Air Station North Island in Coronado. From June 2004 to September 2005, Denome provided a U.S. Navy official with a variety of bribes ranging from a $2,500 bicycle to $18,000 in payments to the official’s credit cards in exchange for more than 100 orders of goods and services valued at more than $300,000.
In addition to bribing the Navy official, whose name wasn’t revealed, Denome improperly characterized personal expenses such as vacations and expenses for hobbies, as business deductions on JD Machine’s income tax reports for 2005, 2006 and 2008, prosecutors said.
In all, Denome understated his personal tax returns by more than $300,000, resulting in additional taxes owed of $80,048, prosecutors said.
— Mike Allen