Contractor Sentenced for $9 Million Navy Fraud

A federal judge sentenced Cory Taylor Wright to three years in prison for his role in a bid-rigging scheme.

Updated on Sept. 22, 2026 in Financial Crime

Contractor Sentenced for $9 Million Navy Fraud

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Cory Taylor Wright received a 36-month prison sentence in Los Angeles for orchestrating a multi-million dollar fraud against the Navy. The court also ordered Wright to pay $9,128,515 in restitution for his scheme involving false invoices and contract steering.

Why it matters

The case highlights the severity of corruption within federal procurement processes and the consequences for individuals who exploit government contracts for personal gain. Wright worked alongside a Navy official to manipulate the system for several years.

Cory Taylor Wright received a 36-month prison sentence, while his co-conspirator Juan Carlos Aragon was sentenced to 12 months and one day for bribery. Aragon was also ordered to pay $97,960 in restitution.

The players

Cory Taylor Wright

He was the defendant convicted of wire fraud for operating a bid-rigging scheme that targeted Navy contracts.

Juan Carlos Aragon

He was a Navy official who pleaded guilty to bribery after accepting kickbacks to direct contracts to Wright's company.

C&C Power Solutions LLC

This was the company used by Wright and Aragon to submit fraudulent invoices and receive steered Navy work.

The details

Wright operated a scheme from December 2016 to August 2022 that steered contracts to his firm, C&C Power Solutions LLC. By submitting fake bids and invoices for goods never delivered to the Navy base in Port Hueneme, he successfully defrauded the agency of more than $9 million.

Timeline

  1. The fraudulent bid-rigging scheme lasted from December 2016 to August 2022.

  2. The Navy awarded a prime contract to the defendant's company in July 2019.

  3. Wright pleaded guilty to wire fraud in September 2025.

  4. Juan Carlos Aragon pleaded guilty to bribery on April 21, 2026.

  5. The court sentenced Wright to 36 months in prison on September 22, 2026.

Legal Context

This sentencing follows a pattern of federal enforcement actions under the False Claims Act to recover taxpayer funds lost to procurement fraud. Such cases highlight the government's rigorous approach to prosecuting corruption involving defense contractors and public officials.

This case underscores the vulnerability of local military installations like the one in Port Hueneme to internal and external corruption. Residents and local businesses should note that federal authorities are actively investigating and prosecuting procurement schemes that divert public tax dollars.

The takeaway

Maintaining transparency in government contracting remains essential to preventing the abuse of public funds by private actors. Individuals working with government agencies should ensure all billing practices are rigorously documented to avoid the severe criminal penalties seen in this case.

Further reading

For more information on recent local prosecutions, see our Financial Crime section.

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Should federal contractors face stricter sentencing when they are convicted of defrauding government agencies?