Fat Leonard scandal

In September 2013, a subsidiary of the Glenn Marine Group, ship support contractor Glenn Defense Marine Asia (GDMA), became the central public focus of an ongoing investigation into a corruption scandal within the US Navy which has become popularly known as the Fat Leonard scandal.[1][2][3] In 2010, Navy officials became suspicious that some of the bills submitted by Francis’ GDMA company from Thailand were padded.[4] According to prosecutors investigating the case, the company overcharged the Navy for goods and services by an amount that exceeded 20 million dollars. The company's chief executive, president and chairman, Leonard Glenn Francis, also known as 'Fat Leonard,' allegedly recruited two moles within the United States Seventh Fleet and the Naval Criminal Investigative Service (NCIS), who would alert him whensoever naval auditors probed Glenn Marine business transactions.[5] In exchange, prosecutors charge that Francis supplied navy officials with prostitutes, cigars, travel expenses, 5-star accommodations, and other lavish perks.[6]

American naval personnel involvement

A number of American naval personnel have been arrested as a result of the investigation, including two navy commanders, a navy captain, and a special agent with NCIS.[7] The chief of naval intelligence was stripped of his security clearance. Also, two admirals were suspended,[8][9] and three admirals were censured by Ray Mabus, the Secretary of the Navy, and forced into retirement after it was determined that they improperly accepted gifts from Francis.[10][11] Those were Rear Adm. Terry Kraft, commander of Naval Forces in Japan, and two other rear admirals, Michael Miller and David Pimpo.[10][11] Those three officers served with the USS Ronald Reagan strike group in 2006 and 2007 while the bribery occurred. In addition, the US Navy has canceled all contracts with GDMA.

Arrest of Leonard Glenn Fat Leonard Francis

US Federal agents lured Francis, a Malaysian national, to a San Diego hotel in the US in September 2013, and arrested him in a sting operation after a three-year secret investigation. He remains in custody in the US.[12] On January 15, 2015, Francis, 50, pleaded guilty to all charges in San Diego federal court.[13] He admitted to bribing scores of U.S. Navy officials with $500,000 in cash, sex from prostitutes, lavish hotel stays, and luxury goods. Leonard admitted to using his Navy contacts, including US Navy ship captains, to obtain classified information and to bilk the Navy out of about $20 million by steering ships to specific ports in the Pacific and falsifying service charges.[10] In his plea, Francis identified seven Navy officials who accepted bribes.[14] The 6-foot-3-inch, 350-pound Malaysian playboy faces a maximum prison sentence of 25 years and agreed to forfeit $35 million in personal assets.[15]

Arrest of Captain Dusek

On October 2, 2013, near the end of the three-year investigation, Navy officials boarded and relieved Capt. Daniel P. Dusek of his command of the amphibious assault ship USS Bonhomme Richard.[7] Fifteen months later on January 15, 2015, federal prosecutors obtained a guilty plea from Dusek on charges of bribery for supplying classified ship movements in the Asia-Pacific region to Glenn Marine in return for prostitutes and luxury hotel stays worth over $10,000.[4] Dusek arranged for the carrier USS Abraham Lincoln and the amphibious assault ship USS Peleliu to stop at ports where Francis' firm could service the ships. Dusek was released on $200,000 bail pending his sentencing hearing set for April 3, 2015. The previous week, on January 2, 2015, Cmdr. Jose Luis Sanchez pleaded guilty to supplying secret ship movement schedules in return for prostitutes, luxury travel and $100,000 in cash over a four year period.[13][16]

Conviction of Dusek

Captain Daniel Dusek, who oversaw operations in the US Pacific Fleet, became the highest-ranking Navy officer to be convicted in one of the US military’s worst bribery scandals. In addition to the 46-month prison sentence, a US judge ordered Dusek to pay $100,000 in fines and restitution for passing ship and submarine schedules to Glenn Defense Marine Asia (GDMA).[17]

Rear Admiral Robert Gilbeau

In June 2016, the US Navy announced that Rear Admiral Robert Gilbeau was to be charged in the case. He would be the 14th officer charged, and the most senior. He had served as a supply officer in several ships served by GDMA.[18]

References

  1. ↑ Whitlock, Craig (6 November 2013). "Third Navy official arrested in bribery probe". www.washingtonpost.com. The Washington Post. Retrieved 8 November 2013.
  2. ↑ Panda, Ankit (9 November 2013). "How 'Fat Leonard' Scammed the US Navy". thediplomat.com. The Diplomat. Retrieved 8 November 2013.
  3. ↑ "Man accused of cheating US Navy led a larger-than-life lifestyle". www.thestar.com.my. Star Publications. 7 November 2013. Retrieved 8 November 2013.
  4. 1 2 Tony Perry (15 January 2015). "Navy captain admits providing classified info in massive bribery scheme". Stars and Stripes. Retrieved 24 October 2015.
  5. ↑ Whitlock, Craig (7 November 2013). "U.S. Navy moles helped Malaysian businessman bilk service, prosecutors say". Washington Post. Retrieved 11 November 2013.
  6. ↑ Whitlock, Craig, "The man who seduced the 7th Fleet", Washington Post, 27 May 2016
  7. 1 2 Burke, Matthew M. (2 October 2013). "2nd high-ranking Navy officer relieved of duty as bribery probe expands". Stars and Stripes. Retrieved 24 October 2015.
  8. ↑ "Two admirals face investigation in Navy bribery scheme". Fox News. 11 November 2013. Retrieved 11 November 2013.
  9. ↑ Whitlock, Craig (8 November 2013). "Two admirals face probe in Navy bribery scheme". Washington Post. Retrieved 11 November 2013.
  10. 1 2 3 Travis J. Tritten (March 10, 2015). "McCaskill wants 'Fat Leonard' discipline to go 'to the very top'". Stars and Stripes. Retrieved November 24, 2015.
  11. 1 2 Erik Slavin (February 10, 2015). "3 rear admirals forced out amid massive Navy bribery investigation". Stars and Stripes. Retrieved November 24, 2015.
  12. ↑ CAVAS, CHRISTOPHER P. (16 November 2013). "US Navy Bribery Scandal Expected To Widen". defensenews.com. Gannett Government Media Corporation. Retrieved 16 November 2013.
  13. 1 2 Craig Whitlock (January 15, 2015). "Defense contractor pleads guilty in massive bribery case". The Washington Post. Retrieved November 24, 2015.
  14. ↑ Julie Watson, AP (January 15, 2015). "Navy bribery probe far from over despite key figure's plea". Stars and Stripes. Retrieved November 24, 2015.
  15. ↑ Gault, Matthew. "How a Malaysian Playboy Controlled the Most Powerful Naval Force on the Planet". Medium (service). Retrieved 14 April 2015.
  16. ↑ Erik Slavin (6 January 2015). "Former Yokosuka commander pleads guilty in Navy bribery scheme". Stars and Stripes. Retrieved 24 October 2015.
  17. ↑ "Top US Navy officer jailed over massive bribery scandal". PressTV. 26 March 2016. Retrieved 30 March 2016.
  18. ↑ US Navy Admiral Pleading Guilty in Fat Leonard Bribery Case - Highest-ranking officer thus charged in bribery scandal, Christopher P. Cavas, Defense News, 9 June 2016, accessed 10 June 2016
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