Case File

The Bahrain Port Payoff Scheme

Author
Nick Behrouzi
Published on
June 9, 2026
Image
Various coalition ships are moored at Mina Salman while stationed in the region to enforce UN sanctions against Iraq during Operation Southern Watch
Various coalition ships are moored at Mina Salman while stationed in the region to enforce United Nations sanctions against Iraq during Operation Southern Watch. The vessels include, from front, foreground: the Russian guided missile destroyer ADMIRAL VINOGRADOV and the miscellaneous command ship USS LA SALLE (AGF-3). In the background are the British frigate HMS CHATHAM (F-87), the French destroyer GEORGES LEYGUES (D-640) and the destroyer USS KINKAID (DD-965) .
Various coalition ships are moored at Mina Salman while stationed in the region to enforce UN sanctions against Iraq during Operation Southern Watch

Contents

Contents

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Introduction

Introduction

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The Corruption Tracker predominantly scrutinises lucrative contracts related to the procurement of equipment and weapons systems. However, it is important to outline that the arms trade is not limited to procurement alone, nor is it the only area of the trade rampant with legal wrongdoing. Maintenance, servicing and operational sustainment are vital to ensuring the upkeep of military equipment, and related contracts remain highly susceptible to various forms of corruption. In recent years, a number of such contracts have involved the bribery of US Navy officials by private defence contractors, resulting in the awarding of no-bid contracts, systemic overbilling and misappropriation of proprietary information, exemplified best by the infamous ‘Fat Leonard’ scandal.

In October 2021, the US Navy became publicly embroiled in yet another corruption affair involving the servicing of naval vessels. The case concerned the bribery of Randy Alford, a Navy Marine Liaison Officer stationed in Bahrain, by Frank Rafaraci, then Chief Executive Officer of Multinational Logistics Services (MLS). Alford’s official duties included port access approvals and management of US Navy-owned equipment. MLS provided ‘critical’ ship husbandry services to US Naval vessels in ports around the world. Between 2010 and 2021, MLS won approximately $1.3 billion in contracts from US defence and civilian agencies, including over $100 million in contracts to service the US Navy in Bahrain between 2013 and 2021, a period during which Alford directly oversaw aspects of MLS’ performance.

Alford was charged in May 2021 by the US Department of Justice (DoJ) with conspiracy to commit bribery, having allegedly solicited bribes from MLS employees to enrich himself in return for being corruptly influenced in the performance of official acts. He was further alleged to have aided in defrauding the US Navy, provided proprietary US Navy information to MLS employees and assisted MLS in obtaining US Navy ship husbanding contracts. Rafaraci was charged in September 2021 with bribery of a public official. It was alleged that Rafaraci ‘corruptly did give, offer, and promise’ money to Alford in return for him leveraging his position to benefit MLS. Rafaraci was alleged to have overseen a wire fraud scheme to defraud the US Navy of over $50 million, however these charges would later be dropped. Rafaraci was ultimately convicted of paying $33,500 in cash bribes to Alford to induce Alford to take official acts to benefit Rafaraci and MLS. The case reinforced concerns regarding vulnerabilities within the US Navy to corruption, and further illustrates that illicit conduct in the arms trade is widespread, extending beyond corruption seen in procurement contracts.

Case Details

Case details

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Seller country
Malta
Seller company
Multinational Logistics Services (MLS)
Buyer country
United States
Goods category
Other
Equipment sold
Ship Husbandry Services
Deal value
Over $100 million
Sum involved in corruption
$33,500
Start year
2013
End year
2021
Outcome status
Trial Closed - Some Convictions

Actors

Actors

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  • Frank Rafaraci: A dual US-Italian citizen and Chief Executive Officer of Multinational Logistics Services; found guilty of bribing a public official.

  • Randy Alford: Marine Liaison Officer of the US Navy’s Fifth Fleet stationed in Manama, Bahrain; his role as Dock Master in Bahrain included duties such as the coordination of diplomatic clearances for US and coalition vessels entering Bahrain’s coastal waters and the auditing and certification of US and coalition vessels; found guilty of conspiracy to commit bribery.

  • Multinational Logistics Services: A multinational corporation providing ship husbandry services, including to the US Navy and to other allied navies; headquartered in Malta, with operations in the UK, UAE, US and Singapore as of 2021.

  • Thomas Rafaraci: Brother of Frank Rafaraci and Chairman of MLS’ Board of Directors; never formally charged or indicted, but linked to prior allegations of a wire fraud scheme overseen by Frank Rafaraci against the US Navy.

Timeline

Timeline

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2001
  • JunFrank Rafaraci met Randy Alford for the first time at a business meeting in Bahrain. At the time, Alford was not a public official.
2004
  • MayRafaraci formally offered an employment contract to Alford to join MLS. Alford rejected the offer but remained open to the possibility of future employment.
2006
  • Alford started his position as Marine Liaison officer for US Navy’s Fifth Fleet in Manama Bahrain.
2011
  • From as early as 2011, the US Navy engaged MLS to provide husbanding services to US Navy at ports worldwide.
2013
  • Alford was pictured with ‘KW’, an unnamed MLS employee, sharing a steak dinner and hookah. Alford exchanged multiple emails with KW and shared proprietary information belonging to the US Navy to KW concerning visiting British warships to Bahrain. KW sent an email to other MLS employees and contractors, ‘describing information that Mr. Alford provided to MLS relating to crew for British warships.’ Alford was found to have sent a scanned copy of the British Royal Navy’s plan for the layout of the shed to US military officials and KW. The prosecution referred to such events that took place in 2013 as the year where Alford’s conspiracy to commit bribery began.
2015
  • 11 JulAlford solicited a bribe from MLS via an email to Thomas Rafaraci with the subject line ‘Money’, which read, ‘Hello, Hope this e-mail finds you and your family in good health and spirit. Can I please make a loan out to you for $20,000.’
  • AugFollowing this exchange, Frank Rafaraci met with Alford in the Diplomat Hotel in Manama and provided Alford with an envelope containing $20,000 cash. Per Alford’s testimony, Rafaraci told him to ‘keep up the good work’ and that he would be in touch.
  • 31 AugThe USS Theodore Roosevelt made a port call to Khalifa Bin Salman Port, Al Hidd, Bahrain, until 6 September 2015. MLS was the husbanding service provider and Alford partly oversaw the visit. The total cost of the visit was $478,259.71.
  • 14 SepBetween 14 September and 23 December, Alford made several cash deposits totalling $5,360, designed to conceal the bribes he had received from Rafaraci.
2016
  • 22 MarThe US Navy issued a contract to MLS for $148,999.98 for the provision of a barge at Naval Support Activity Bahrain at the Mina Salman Port for a period from 23 March 2016 to 22 June 2016. Alford directly oversaw aspects of MLS’ performance.
  • 16 JunThe US Navy issued a contract to MLS for $297,999.96 for the rental of barges at Naval Support Activity Bahrain at the Mina Salman Port for a period from 23 June 2016 to 22 December 2016, with a possible 6-month extension. Alford directly oversaw aspects of MLS’ performance.
2017
  • 17 MayAlford solicited bribe payments in an email sent to Thomas Rafaraci, which read ‘Hello! How are you, Frank, and the family. I wanna talk to you. Please keep in touch.’ In the weeks thereafter, Rafaraci met Alford in person.
  • 6 SepAlford notified the USS Thunderbolt that it would have to change berths at Mina Salman Port, requiring the US Navy to pay MLS for the use of tugboats.
  • 28 SepAlford’s department, Port Operations, advised the USS Lewis B Puller to report to an anchorage position outside Mina Salman port, Manama, Bahrain. The action resulted in financial benefit to MLS as a result of the order of water taxis from MLS to transport the ship’s crew to shore.
  • 15 OctPort Operations advised USNS Catawba to shift berths in Mina Salman Pier, Manama. Alford was cc’d on an email from the vessel’s Supply Officer telling the Navy contracting department that it would need additional services. The Navy contracted MLS to provide the services and Alford was the primary point of contact for the vessel’s berthing.
  • 22 OctThe USNS Yukon disputed a charge from MLS related to a recent visit to Khalifa Bin Salman Port. Contracting personnel for the vessel claimed it was overbilled by the port for ‘port dues’. The Navy paid the full amount of the overbilling.
  • 31 OctPort Operations advised the USS Vella Gulf to shift pier berths at Khalifa Bin Salman Port, requiring the use of two tug boats and one pilot boat. The Navy contracted MLS to provide the boats. The prosecution noted that this may have occurred as a result of commercial shipping considerations.
  • DecAlford started his position as a civilian Transportation Specialist for the US Army in Alabama.
2018
  • 27 MarHaving informed Rafaraci and others of his intention to return to the Navy in the future, Alford solicited another bribe from Thomas Rafaraci via an email, which read, ‘Hello Thomas, it’s been awhile how you’ve been, I wanted to ask for your help again, if possible. I need to barrow [sic] $13,500, my wife need emergency surgery cause me to fallen behind my young son college tuition. I will pay you as soon as possible. We really appreciate your help and thank you so much.’
  • 20 AprAlford wrote an email to Rafaraci, saying ‘Frank, please call me’.
  • 21 AprRafaraci replied, informing Alford that he was travelling but would call him once he returned to Dubai, United Arab Emirates.
  • 6 MayRafaraci met Alford in a hotel in Miami. During their meeting, Rafaraci gave Alford an envelope containing $13,500 in cash and paid for drinks. Alford then made a series of cash deposits into several accounts he controlled.
2020
  • JulAlford returned to his position as Marine Liaison Officer within the Navy in Bahrain.

Outcomes

Investigation Outcomes

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2021
  • 28 MayRandy Alford was charged with conspiracy to commit bribery by the Department of Justice. Alford was alleged to have solicited and accepted ‘anything of value personally’, including cash bribes, from MLS executives Frank and Thomas Rafaraci, and others. It was alleged that in return, Alford was influenced in the performance of his official act and aided in defrauding the US Navy. Further allegations outlined that Alford provided proprietary information to MLS employees and assisted MLS in obtaining US Navy ship husbanding contracts. Additionally, it was alleged that Alford had taken steps to conceal his actions, including through the use of burner phones to communicate with MLS employees.
  • 10 JunRandy Alford pleaded to one count of conspiracy to commit bribery. In a Statement of the Offense, Alford and his attorney agreed that Alford accepted cash and entertainment expenses in return for being corruptly influenced in the performance of his official acts and ‘aiding in committing fraud on the US’ by ‘providing MLS with internal government information’, ‘influencing where US and allied warships made port calls in Bahrain’, and ‘approving of or failing to inspect improper and fraudulent expenditures by MLS’. Alford also agreed to having used ‘coded language’ to describe bribery payments, including by referring to bribes as ‘loans’ that were not intended to be repaid. Alford subsequently resigned from the Navy.
  • 21 SepA criminal complaint and supporting affidavit were filed against Frank Rafaraci by Cordell DeLaPena, Special Agent with the Defense Criminal Investigative Service (DCIS) for the Department of Defense Office of Inspector General, and European Resident Agency, and formerly a lead investigator in the ‘Fat Leonard’ scandal. The criminal complaint and affidavit alleged probable cause to believe that Rafaraci and others, including Thomas Rafaraci, and an unnamed Chief Financial Officer of MLS, bribed public officials, ran a wire fraud scheme to defraud the US Navy of over $50 million and laundered the subsequent proceeds by using a network of shell companies and fictitious transactions.
  • 27 SepRafaraci was arrested in Malta. US and Maltese authorities had worked together to conduct his arrest. However, Rafaraci was swiftly discharged from arrest by Maltese authorities after the court heard Rafaraci had not been formally charged in the US.
  • 30 SepRafaraci was charged with bribery in an indictment by the US District Court for the District of Columbia. Over the next two weeks, Maltese authorities scrambled to have Rafaraci rearrested and extradited.
  • 18 OctRafaraci voluntarily returned to the US to face legal proceedings. Rafaraci pleaded not guilty on all counts brought against him.
2022
  • JanRafaraci’s legal team first receives Randy Alford’s Statement of the Offense.
  • 23 MarA joint motion was filed, requesting the court overseeing the case to strike the criminal complaint and supporting affidavit brought against Rafaraci due to the presence of ‘factually inaccurate information’ contained within the two documents.
  • 24 MarA number of charges set out by DeLaPena ‘related to conspiracy to commit bribery, conspiracy to commit wire fraud, and conspiracy to commit money laundering’ were dismissed. However, the court denied the motion to remove the complaint from the docket, instead ordering the ‘factually inaccurate’ paragraphs in the complaint and the affidavit to be redacted.
  • 20 AprPlea offer sent to Rafaraci’s counsel. Rafaraci pleaded guilty to a one-count indictment charging him with paying a bribe of $33,500 to a public official ‘with the intent to induce Alford to take official acts to benefit (Rafaraci) and his company’. Rafaraci stepped down as CEO of MLS in April 2022.
  • 9 NovRandy Alford was found guilty and sentenced to 1 year and 1 day in prison.
2023
  • 30 JunRafaraci first brings concerns with facts included in Alford’s Statement of the Offense to the government.
  • 22 SepRafaraci once more presents concerns with Alford’s Statement of the Offense. Rafaraci claimed that a number of events in the Statement were incorrect or misleading, rejecting that MLS had profited from extra costs related to modified port visits and berthing shifts overseen by Alford. Rafaraci also rejected that Alford had provided MLS with Royal Navy ship movements.
  • 30 OctRafaraci’s counsel files a motion to compel discovery, requesting Brady and Giglio materials, seeking information relating to DeLaPena from other cases. Rafaraci’s counsel claimed the presence of ‘several significant false and/or misleading allegations’ in Alford’s Statement of the Offense, ‘similar to the inaccuracies in the fraud allegations’ in DeLaPena’s affidavit.
  • 2 NovRafaraci’s lawyer, Michael Sherwin, submitted a sentencing memorandum to the court. In the document, Sherwin claimed Rafaraci to be a ‘generous and caring man’ who made ‘a lapse of judgement’, ‘not representative of his true character and patriotism’. He pointed to the US Government ‘turning to’ Rafaraci in times of need; MLS coordinated logistics of a 1989 US-Russia summit in Malta threatened by an unexpected storm, assisted evacuation of refugees from Afghanistan and helped the US military respond to Covid-19. Sherwin described DeLaPena as a man intent on finding the next ‘Fat Leonard’ scandal ‘expecting to find widespread fraud’. Further, he argued that Rafaraci had ‘taken full responsibility for his conduct, which was an isolated incident in a lifetime of model citizenship and service’ and that, on account of Rafaraci experiencing ‘significant collateral consequences’ due to the trial, incarceration was ‘unnecessary’. The US Government also submitted a Memorandum in aid of sentencing to the court. The prosecution advocated for an 8-month sentence, the bottom of the guideline for the related offence. Rafaraci was deemed by the prosecution to ‘warrant leniency’ on account of his ‘history and characteristics’, but that the ‘sentence should reflect the need to promote general deterrence.’
  • 3 NovThe US Government responds to Rafaraci’s motion to compel discovery. The government denounced Rafaraci’s motion as a ‘fishing expedition’ unrelated to the charges of bribery brought against him by the US government. In the response, the government outlined that ‘the defendant acknowledges that he is looking for evidence of wrongdoing’ by DeLaPena pertaining to the earlier charges of fraud brought against Rafaraci. In their response, the US government provided evidence showing that Alford’s Statement was accurate and had been corroborated with evidence provided to Rafaraci’s team in discovery. This included examples of MLS profiting from port visits and berthing shifts on account of Alford’s department, the provision of proprietary information to MLS by Alford and Alford’s engagement in conspiracy to commit bribery since 2013, preluding Rafaraci’s payment of cash bribes to Alford in 2015 and 2018.
  • 9 NovFrank Rafaraci was found guilty and sentenced to 1 year and 1 day in prison.
2024
  • NovRafaraci filed a case against Cordell DeLaPena in Malta seeking $500 million in compensation, alleging that he misrepresented evidence to US and Maltese authorities.

References

References

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