Nine More Indicted In Fat Leonard Scandal

A federal grand jury has indicted nine high-ranking active and retired Navy members as part of an investigation into a bribery scandal known as “Fat Leonard.” The Justice Department says the nine have been charged with accepting luxurious dinners, trips, gifts and the service of sex workers as bribes in exchange for handing over classified military information to Singapore-based defense contractor Leonard Francis.

Twenty-seven people have been charged with crimes since the investigation became public in 2013, including the nine Navy officers indicted this month. Authorities say that the case is still unfolding and that more than 200 people — including 30 admirals — have come under scrutiny.

Known as “Fat Leonard” for his 6ft 3inch, 350-pound physique, Francis has pleaded guilty to bribing “scores” of Navy officials for over a decade with prostitutes, cash, hedonistic parties and other gifts. In exchange, according to federal prosecutors, the officials provided Francis with classified or inside information that enabled his firm, Glenn Marine Defense Asia, to gouge the Navy out of tens of millions of dollars.  Leonard also plead guilty to padding invoices for services not rendered so that some of his navy contacts could pocket the money for themselves.

In June 2016, Robert Gilbeau became the first active-duty Navy admiral in modern history to be convicted of a felony.  He is awaiting sentencing.  In January, U.S. Navy Lieutenant Commander Gentry Debord was sentenced to 30 months in prison, ordered to pay a $15,000 fine and $37,000 in restitution to the U.S. Navy.  Debord, 41, plead guilty in October 2016 to accepting bribes in the form of cash, luxury hotels and prostitutes from Leonard Glenn Francis.  The fraud occurred from November 2007 to January 2013, while Debord was a supply officer aboard the U.S.S. Essex.

Others charged are current or former U.S. Navy officials, including Commander Bobby Pitts, Captain Daniel Dusek, Commander Michael Misiewicz, Lt. Commander Todd Malaki, Commander Jose Luis Sanchez, former NCIS Supervisory Special Agent John Beliveau II, Petty Officer First Class Daniel Layug and Paul Simpkins, a former DoD civilian employee who oversaw contracting in Singapore.

Dusek, Misiewicz, Malaki, Beliveau, Sanchez and Layug have also pleaded guilty in connection with the scheme.  On Jan. 21, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; on March 25, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; on April 29, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to pay $95,000 in restitution to the Navy; and on Oct. 14, 2015, Beliveau was sentenced to serve 144 months in prison and ordered to pay $20 million in restitution to the Navy.  Sanchez awaits sentencing.  Pitts was charged in May 2016 and his case remains pending.

Military personnel found guilty of serious misconduct are usually demoted and forced to retire – and because pension values are based on rank, losing a star or a stripe leads to a partial reduction in their pension. Seven Navy officers who have pleaded guilty in the corruption and bribery scandal are reportedly still eligible for generous taxpayer-funded retirement benefits.  Disgraced Navy admiral Robert Gilbeau has already begun collecting $10,000 a month.