"Historical memorabilia related to General Douglas MacArthur were used by the participants in sexual acts."
3/14/17, "Admiral, seven others charged with corruption in new ‘Fat Leonard’ indictment," Washington Post, Craig Whitlock
"The Justice Department unsealed a fresh indictment Tuesday charging
eight Navy officials — including an admiral — with corruption and other
crimes in the “Fat Leonard” bribery case, escalating an epic scandal
that has dogged the Navy for four years.
Among those charged were
Rear Adm. Bruce Loveless, a senior Navy intelligence officer who
recently retired from a key job at the Pentagon, as well as four retired
Navy captains and a retired Marine colonel. The charges cover a period
of eight years, from 2006 through 2014.
The Navy personnel are
accused of taking bribes in the form of lavish gifts, prostitutes and
luxury hotel stays courtesy of Leonard Glenn “Fat Leonard” Francis, a
Singapore-based defense contractor who has pleaded guilty to defrauding
the Navy of tens of millions of dollars.
The indictment lists
page after page of bribes allegedly provided to the defendants including
$25,000 watches, $2,000 boxes of Cohiba cigars, $2,000 bottles of
cognac and $600-per-night hotel rooms. According to the charging
documents, Francis also frequently sponsored wild sex parties for many
officers assigned to the USS Blue Ridge, the flagship of the Navy’s 7th
Fleet, and other warships.
During a port visit by the Blue Ridge to Manila in May 2008, for
example, five of the Navy officers attended a “raging multi-day party,
with a rotating carousel of prostitutes,” at the Shangri-La Hotel,
according to the indictment. The group allegedly drank the hotel’s
entire supply of Dom Pérignon champagne and rang up expenses exceeding
$50,000, which Francis covered in full.
On another port visit by
the Blue Ridge to Manila in February 2007, Francis allegedly hosted a
sex party for officers in the MacArthur Suite of the Manila hotel.
During the party, “historical memorabilia related to General Douglas
MacArthur were used by the participants in sexual acts,” according to
In exchange, according to federal prosecutors,
the officials provided Francis with classified or inside information that enabled his firm, Glenn Defense Marine Asia, to gouge the Navy out
of tens of millions of dollars.
Federal agents fanned out across six states Tuesday in a coordinated operation to arrest the defendants, authorities said.
the retired admiral, was arrested at his home in Coronado, Calif. The
Navy had announced in November 2013 that he was under scrutiny by the
Justice Department and suspended his access to classified material. He
was allowed to retire last fall.
Navy officials have said that about 30 admirals are under investigation, although only a handful have been named publicly.
Gilbeau, a one-star admiral, was convicted last June after he pleaded
guilty to making false statements to investigators about his contacts
with Francis. He has since retired. He is scheduled to be sentenced next
month in federal court.
Separately, the Navy has
censured or disciplined three admirals for ethics violations after they
accepted lavish meals and other gifts from Francis.
into custody Tuesday included David Newland, 60, a retired captain from
San Antonio; James Dolan, 58, a retired captain from Gettysburg, Pa.;
David Lausman, a retired captain from The Villages, Fla.; and Donald
Hornbeck, a retired captain who lives in Britain.
arrested Enrico de Guzman, a retired Marine colonel from Honolulu; Lt.
Cmdr. Stephen Shedd, an active-duty officer from Colorado Springs; and
Robert Gorsuch, 48, of Virginia Beach, a retired chief warrant officer.
of the defendants could be reached for comment Tuesday. The charges
against them include bribery, conspiracy, obstruction of justice and
making false statements to federal investigators.
All of the
accused officers formerly held key positions on the command staff of the
Japan-based 7th Fleet and were bribed by Francis because they could
help steer business to Glenn Defense Marine Asia, according to court
The case is being prosecuted by the U.S. attorney’s
office in San Diego with the assistance of the Naval Criminal
Investigative Service and the Defense Criminal Investigative Service.
is a fleecing and betrayal of the United States Navy in epic
proportions,” said Alana W. Robinson, the acting U.S. attorney for the
Southern District of California. She said the defendants “worked
together as a team to trade secrets for sex, serving the interests of a
greedy foreign defense contractor and not those of their own country.”
new indictment brings the number of people charged with crimes in the
Fat Leonard investigation to 27. Ten current and former Navy officials
have pleaded guilty so far.
Prosecutors say the case is still unfolding and that more than 200 people have come under scrutiny.
scandal is the worst corruption case in Navy history and has rocked the
service since Francis was arrested in September 2013 in an
international sting operation that lured him from Singapore to San
Diego. Francis pleaded guilty to bribery and conspiracy charges two
years ago. and court papers indicate he has been cooperating with
Over time, the investigation has revealed the ease
with which the 6-foot-3-inch, 350-pound defense contractor was able to
penetrate the senior ranks of the 7th Fleet and recruit moles to work on
Court papers portray Francis as a master
manipulator who persuaded Navy officials to feed him classified
information about ship movements and confidential contract information
that he used to undercut his competitors.
Corrupt Navy personnel
have also pleaded guilty to leaking Francis sensitive law enforcement
files that he exploited for years to thwart dozens of failed criminal
investigations into his company.
Despite rising signs of
widespread fraud, the Navy kept awarding business to Francis’s company
to resupply its ships and submarines throughout Asia. In 2011, Glenn
Defense won deals valued at $200 million to service U.S. vessels at
ports stretching from the Russian Far East to Australia. The contracts
were canceled after Francis’s arrest in 2013.
While Francis was
already legendary within the Navy for his hedonistic parties, the
indictment unsealed Tuesday provided fresh details of how senior
officers with the 7th Fleet allegedly became accustomed to living the
high life at ports throughout Asia, at Francis’s expense.
February 2007, for example, Francis splurged for $50,000 worth of
shopping, dining and luxury hotel rooms for Newland, de Guzman and
others during a port visit to Singapore, prosecutors allege.
next month, in Tokyo, the defense contractor allegedly took Newland, de
Guzman, Hornbeck and others to the luxurious Oak Door restaurant,
according to the indictment. The meal included foie gras, lobster
thermidor, Sendai tenderloin, cognac and cigars.
the “Liberte Sauvage,” the winning cake at the Coupe du Monde de la
Patisserie, a prestigious international baking contest.
four-day visit by the Blue Ridge to Hong Kong in January 2008, Francis
provided rooms for Dolan, Hornbeck, Loveless and Shedd at the J.W.
Marriott hotel at a price of $626 per night, court papers say.
he took all of them — plus Lausman — out for an extravagant dinner in a
private room at the Petrus Restaurant overlooking Hong Kong harbor,
according to the indictment.
That eight-course meal featured black truffle soup, rock lobster
salad, osetra caviar, pan-seared duck liver with pear and sunchoke,
Dover sole, grilled Wagyu beef tenderloin, fine cheeses and baked Alaska
for dessert, court papers show.
Each course was paired with wine or Champagne. The total bill: $18,371.
Hornbeck, who at the time served as the 7th Fleet's deputy chief of staff for operations, emailed Francis a thank-you note, according to the
indictment. “The food, music and wine were wonderful,” he wrote.
who was preparing to retire from the Navy, also sounded out Francis to
see if he might be willing to hire him. “If you are still considering
opening an office in San Diego in the near-future, I would very much be
interested in being a part of that,” he wrote.
The job never
materialized. But court papers show that Francis showered the Navy
captain with other gifts, including $13,000 to pay for a culinary
internship for a relative of Hornbeck’s at the Chalet Suisse restaurant
in Kuala Lumpur, Malaysia."
News that doesn't receive the necessary attention.
Wednesday, March 15, 2017
Senior Navy intelligence officer Loveless among expanding group charged with bribery and leaking classified or inside information for 8 years from 2006-2014. US military men defrauded global laughing stock US taxpayers out of 10s of millions of dollars. 30 admirals under investigation, 'worst corruption case in Navy history.' Despite signs of fraud, US Navy kept awarding business to the same company-Washington Post
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