SAN DIEGO–A San Diego contractor Jesse Denome pled guilty Monday in federal court before Judge Cathy Ann Bencivengo to conspiring to bribe a federal official and filing a false tax return. The plea is subject to final acceptance by United States District Court Judge Larry A. Burns before or at the time of sentencing.
According to court documents, Denome is the owner of JD Machine Tech, Inc. (“JD Machine”), a San Diego-based defense contractor. JD Machine contracted with the Fleet Readiness Center Southwest (located at the Naval Air Station North Island in Coronado, California) to provide goods and services to the E2/C2 aircraft program. As revealed during his guilty plea, Denome—from June 2004 to September 2005—provided a government official employed by the U.S. Department of the Navy (identified only as D.V.) with a variety of bribes in various forms. These bribes were given to D.V. with the intent to induce him to steer valuable contracts related to the E2/C2 program to JD Machine.
According to court records, the bribes included: (1) a $2,472.86 bicycle; (2) a $449.95 model airplane engine; and (3) over $18,000 in payments on D.V.’s personal credit card. In exchange for these bribes, D.V. placed over 100 orders on behalf of the E2/C2 program (valued at over $300,000) with JD Machine for various goods and services.
Court documents also revealed that Denome improperly characterized personal expenses, such as vacations and expenses for hunting and other hobbies, as business deductions on JD Machine’s 2005, 2006, and 2008, Form 1120S, U.S. income tax returns. These improper deductions resulted in understated tax due and owing on defendant’s personal tax return. In total, defendant understated his personal tax returns by over $300,000, resulting in additional tax due and owing by defendant of $80,048.
Denome is scheduled to appear in court before Judge Larry A. Burns, United States District Court Judge, on August 8 for sentencing.
