On March 9, 1990, Marcinko was sentenced to 21 months in federal prison and fined $10,000 under charges of defrauding the government over the price of contractor acquisitions for hand grenades. Marcinko was the subject of a witch-hunt for his work with Red Cell the fraud committed revealed the weaknesses of military security.
The information on this case is classified but known as Operation Iron Eagle and the investigation was headed by Special Agent Ralph Blincoe, Deputy Director, Management and Administration, of the Naval Criminal Investigative Service who retired on February 27, 2010.
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