Feds bust contractor for personal loan

A Chula Vista man who is a Navy contractor has pleaded guilty to aiding and abetting a conflict of interest with a port engineer who improperly loaned him $30,000.

The sentencing for Alfonso Liburd, 67, is set for Nov. 17 in U.S. District Court in San Diego. Liburd remains free on his own recognizance.

Liburd is president and chief executive officer of NevWest, an Otay Mesa business which does a variety of jobs on Navy ships including electronics installation, hardware, repairs, and communication systems.

A former Navy port engineer, John Nasshan, 55, has pleaded guilty to committing conflict of interest when he loaned $30,000 to Liburd. Nasshan’s job was to administer projects at the Navy’s Southwest Regional Maintenance Center and he was banned from having a financial interest in these companies.

Nasshan drafted technical direction letters, recommended which contractors were qualified, and certified work performed on Navy ships by contractors, according to the U.S. Attorney’s office.

Nasshan was forced to resign his position in August. He was placed on three years probation and fined $1,000 by U.S. District Court Judge Janis Sammartino on Aug. 11.  No jail time was imposed.

Nasshan loaned the money to Liburd, a friend, because he had financial trouble but it was a conflict of interest. Sammartino noted at his sentencing that Nasshan didn’t benefit from the loan to Liburd, especially since he lost his job.

Nasshan has been debarred and prevented from working on future Navy contracts, according to the U.S. Attorney’s office.  It is not clear if that could happen to Liburd.

The maximum sentence Liburd could face is five years in federal prison and/or a $250,000 fine. Since Nasshan did not receive any jail time, it is possible Liburd, a lay minister, will not receive any either.

The U.S. Attorney’s office said Liburd lied to agents from the Defense Criminal Investigation Service in 2015, saying he had not received money from Nasshan, who structured the loan by dividing some of it up into amounts less than $10,000. Nasshan paid some amounts over $10,000, but it was exchanged in cash.

“As in all phases of the government contracting process, it is essential that the work performed by contractors be done free of undue influence, bias, or favoritism,” said Acting U.S. Attorney Alana Robinson.

“Accordingly, government officials and employees are prohibited from working on any and all matters that would affect their personal financial position,” said Robinson.