Richard Allen, a 53-year-old retired US Navy Petty Officer First Class, leveraged two decades of employment at a Virginia naval base to conduct a complex theft-resale operation of military supplies. Serving time at the Naval Weapons Station Yorktown-Cheatham Annex, Allen had full access to military supplies, which he systematically pilfered and sold, worldwide, to buyers in China, Russia, and more than 50 other countries.
Court documents said that Allen and his conspirators took upwards of $850,000 in the form of fraudulently obtained equipment, including naval uniforms, flame-retardant clothing, body armor, and other more specialized tactical gear. Often, the stolen goods were housed in various locations, such as Rhode Island, before shipping to clientele. The payments were generally made via PayPal, with the proceeds being laundered through incremental bank transfers to evade law enforcement.
Global Network of Buyers
Allen’s illegal network was extensive, spanning well beyond US borders. Other than China and Russia, his clients included countries such as Kazakhstan, Turkey, and Austria. Co-conspirators were of utmost importance in identifying bulk buyers and ensuring timely deliveries, often through commercial shipping services.
To continue to build his operation, Allen would encourage associates to find others who could help them conduct break-ins on the base. The 10 to 20 estimated thefts were well-planned. Allen would listen in on military police radio codes to ensure that he was not being found out. This was a lucrative scheme as his accomplices were well paid, and some would even be taken on trips overseas with Allen, following a successful heist.
E-mails hosted on a Russian server revealed Allen’s inventory and operations. In one example, in August of 2013, he fulfilled a $25,000 order which called for hundreds of items. This illustrated the scope of his illegal business-which didn’t stop even when Allen retired from the Navy.
Sentencing and Aftermath
In August, Allen pleaded guilty to conspiracy and money laundering and was sentenced to 18 months in prison, to be followed by three years of federal supervised release. Authorities unraveled his operations in the course of an extensive investigation spearheaded by the FBI and Homeland Security Investigations, with support from several other federal agencies.
After Allen retired, he handed over the clientele to a co-conspirator to keep the operation going. That successor, Matthew T. Deleo, was indicted in 2016, which unraveled the convoluted web Allen had built.
The case underscores the severe repercussions of abusing a trusted position for personal gain. While Allen’s actions undermined the integrity of the military, the collaborative efforts of federal agencies ensured justice was served, highlighting the importance of vigilance against such fraud schemes.
