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October 17, 2016 By AMK

Latest ‘Fat Leonard’ conspirator pleads guilty in Navy’s ongoing bribery and fraud investigation

A U.S. Navy lieutenant commander is the latest military official to plead guilty to a bribery charge in federal court and admitted to accepting cash, luxury hotels and prostitutes from a foreign defense contractor in exchange for proprietary Navy information.

Gentry Debord, who is based in Singapore, pleaded guilty on Oct. 13, 2016. He is scheduled to be sentenced on Jan. 13, 2017. In pleading guilty, Debord, who served in several logistical and supply positions in the Western Pacific, admitted that he instructed Glenn Defense Marina Asia (GDMA) executives to inflate their invoices to the Navy to cover the cost of various illicit gifts provided to him. From November 2007 to January 2013, Debord provided former GDMA CEO Leonard Glenn Francis and others with internal and proprietary U.S. Navy information.

Francis’ reputation for corruption and bribery in recent years has led him to be nicknamed “Fat Leonard.” (See The Washington Post article, “The Man Who Seduced the 7th Fleet,” here.)

This information provided by Debord included inside information about competitors’ bids on Navy contracts and information about an investigation into GDMA’s billing practices. Debord also admitted to misusing his position and influence in the Navy to advocate for and advance GDMA’s interests, including by approving inflated invoices for services never rendered that he directed Francis to submit.

According to admissions made in connection with his plea, as part of this conspiracy, Debord, Francis and others attempted to conceal the bribes given to Debord as well as the nature and extent of his relationship with Francis. This was done by, for example, using coded language in communications referring to prostitutes as “cheesecake” or “bodyguards.” Debord also requested that GDMA executives provide him with an apartment for a port visit.

In addition, Debord admitted to asking a GDMA executive to provide him with three hotel rooms, two cell phones, a van and 2,000 Singapore dollars. Debord instructed the executive to recover the value of these items by inflating the amount that GDMA would invoice the U.S. Navy for potable water and trash removal service for the U.S.S. Essex port visit to Singapore, which GDMA proceeded to do.

So far, a total of 16 individuals have been charged in connection with the GDMA corruption and fraud investigation. Of those, 11 are current or former U.S. Navy officials, including Debord, Admiral Robert Gilbeau, Captain (ret.) Michael Brooks, Commander Bobby Pitts, Captain Daniel Dusek, Commander Michael Misiewicz, Lt. Commander Todd Malaki, Commander Jose Luis Sanchez, Petty Officer First Class Daniel Layug, Naval Criminal Investigative Service Supervisory Special Agent John Beliveau and Paul Simpkins, a former DoD civilian employee who oversaw contracting in Singapore.

Gilbeau, Dusek, Misiewicz, Malaki, Beliveau, Sanchez, Layug and Simpkins have pleaded guilty.

On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine.
On Jan. 29, 2016, 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, 2016, 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, 2016, 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.
Beliveau, a a onetime NCIS agent of the year, was scheduled to be sentenced at the end of last week.
Gilbeau, Sanchez and Simpkins also await sentencing.
Brooks and Pitts were charged in May 2016 and their cases are pending.

Also charged are five GDMA executives: Francis, Alex Wisidagama, Ed Aruffo, Neil Peterson and Linda Raja.

Wisidagama has pleaded guilty and was sentenced on March 18, 2016, to 63 months in prison and $34.8 million in restitution to the Navy.
Francis and Aruffo have pleaded guilty and await sentencing.
Peterson’s and Raja’s cases are pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until they are found guilty beyond a reasonable doubt in a court of law.

NCIS-DCIS-DCAA The Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS0, and the Defense Contract Audit Agency (DCAA) are investigating this ongoing case. Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DoD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.

Source: https://www.justice.gov/opa/pr/us-navy-lieutenant-commander-pleads-guilty-expanding-bribery-and-fraud-investigation

September 22, 2016 By AMK

More ‘Fat Leonard’ fallout seen in indictments of former executives of foreign defense contractor

Two former executives of a foreign defense contractor have been charged with participating in a conspiracy to submit fraudulent information, price quotes, claims and invoices to the U.S. Navy in an effort to steal millions of dollars as part of a years-long corruption and fraud scheme.

All of the charges relate to the defendants’ interactions with Leonard Glenn Francis, the former CEO of Glenn Defense Marine Asia (GDMA), a defense contracting firm based in Singapore. Francis’ reputation for corruption and bribery in recent years has led him to be nicknamed “Fat Leonard.” (See The Washington Post article, “The Man Who Seduced the 7th Fleet,” here.)

Neil Peterson, 38, and Linda Raja, 43, both of Singapore, were each charged with one count of conspiracy to defraud the United States with respect to claims; one count of conspiracy to commit wire fraud; and multiple counts of making false claims. Both defendants have been arrested by authorities in Singapore at the request of the U.S. government.

According to the indictment, Peterson and Raja worked for Singapore-based GDMA and conspired with Leonard Glenn Francis in order to defraud the U.S. Navy for GDMA’s financial benefit. The indictment alleges that Peterson served as the Vice President for Global Operations for GDMA and Raja served as GDMA’s General Manager for Singapore, Australia and the Pacific Isles.

The indictment alleges that Peterson and Raja submitted more than $5 million in false claims and invoices to the U.S. Navy. In addition, Peterson and Raja allegedly worked to perpetuate and cover up their fraud by consistently misrepresenting to the U.S. Navy the cost of providing services to its ships in Asia, even going so far as to submit false price quotes from non-existent companies on letterhead created from graphics cut and pasted from the internet.

Including Peterson and Raja, a total of 16 individuals have been charged to date in connection with the GDMA corruption and fraud investigation. Of those, 11 are current or former U.S. Navy officials, including Admiral Robert Gilbeau; Captain (ret.) Michael Brooks; Commander Bobby Pitts; Lt. Commander Gentry Debord; Captain Daniel Dusek; Commander Michael Misiewicz; Lt. Commander Todd Malaki; Commander Jose Luis Sanchez; Petty Officer First Class Daniel Layug; NCIS Supervisory Special Agent John Beliveau; and Paul Simpkins, a former DoD civilian employee who oversaw contracting in Singapore.

Gilbeau, Dusek, Misiewicz, Malaki, Beliveau, Sanchez, Layug and Simpkins have pleaded guilty. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and ordered to pay $15,000 in restitution to the Navy and a $15,000 fine; on March 25, 2016, Dusek was sentenced to 46 months in prison and ordered to pay $30,000 in restitution to the Navy and a $70,000 fine; and on April 29, 2016, Misiewicz was sentenced to 78 months in prison and ordered to pay $95,000 in restitution to the Navy and a $100,000 fine. Gilbeau, Beliveau, Sanchez and Simpkins await sentencing.

Brooks, Pitts and Debord were charged in May 2016 and their cases are pending.

Also charged are three additional GDMA executives: Francis, Alex Wisidagama and Ed Aruffo, and all three have pleaded guilty. Wisidagama was sentenced on March 18, 2016, to 63 months in prison and was ordered to pay $34.8 million in restitution to the Navy. Francis and Aruffo await sentencing.

NCIS-DCIS-DCAA An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

DCIS, NCIS and the Defense Contract Audit Agency are investigating. The Justice Department’s Fraud Section of the Criminal Division and U.S. Attorneys from the Southern District of California are prosecuting the case. The Justice Department’s Office of International Affairs provided assistance.

Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD hotline at www.dodig.mil/hotline, or call (800) 424-9098.

Source: https://www.justice.gov/opa/pr/two-former-executives-foreign-defense-contractor-charged-expanding-fraud-and-corruption-probe

June 27, 2016 By AMK

‘Fat Leonard’ case takes down former DoD supervisory contracting officer

A former Department of Defense (DoD) supervisory contracting officer pleaded guilty last week to charges that he accepted bribes from the owner of the foreign defense contractor at the center of a massive bribery and fraud scandal.

Paul Simpkins, 61, of Haymarket, Virginia, was a senior DoD contracting official who supervised contracting officers responsible for awarding and administering U.S. Navy contracts. Sentencing is set for Sept. 9, 2016.

According to admissions made in connection with his plea, from approximately May 2006 until September 2012, Leonard Glenn Francis a/k/a “Fat Leonard,” owner of Singapore-based Glenn Defense Marine Asia (GDMA), provided cash, travel expenses and the services of prostitutes in return for Simpkins’s efforts to steer contracts to GDMA and intervene on GDMA’s behalf in contracting disputes with the U.S. Navy. Simpkins admitted that during the years-long scheme, Francis provided him with hundreds of thousands of dollars through wire transfers to a bank account in Japan controlled by Simpkins’s former wife. After Francis transferred the funds to Simpkins’s wife’s account, Simpkins caused payments to be remitted to a U.S. bank account held in his own name.

According to his plea, Simpkins admitted that, in return, he:

Used his influence within the U.S. Navy to benefit GDMA, specifically that he extended GDMA’s contract after a subordinate recommended the contract not be extended due to high costs.
Instructed U.S. Navy officials in Hong Kong to discontinue using meters that ensured proper accounting of the amount of waste that GDMA removed from U.S. Navy ships to ensure that no overbilling occurred.
Instructed a U.S. Navy official to ignore invoices that GDMA submitted after Francis complained that U.S. Navy personnel were asking questions.

Including Simpkins, 14 individuals have been charged in connection with this scheme; of those, 11 have pleaded guilty, including Rear Admiral Robert Gilbeau, Captain (Select) Michael Misiewicz, Captain Daniel Dusek, Lieutenant Commander Todd Malaki, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and Petty Officer First Class Dan Layug.

On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine.
On Jan. 29, 2016, 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 18, 2016, Alex Wisidagama, a former GDMA employee, was sentenced to 63 months in prison and to pay $34.8 million in restitution to the Navy.
On March 25, 2016, 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, 2016, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to forfeit $95,000 in proceeds for the scheme.
Francis and Ed Aruffo, a former GDMA employee, as well as GDMA, the corporate entity, have pleaded guilty and await sentencing.
Retired Captain Michael Brooks, Commander Bobby Pitts and Lieutenant Commander Gentry Debord were charged by a federal grand jury on May 25, 2016, and their cases remain pending.

The ongoing investigation is being conducted by NCIS, DCIS and DCAA.

Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.

Source: https://www.justice.gov/opa/pr/former-supervisory-contracting-officer-pleads-guilty-accepting-bribes-foreign-defense

Leonard Glenn Francis’ reputation for corruption and bribery in recent years has led him to be nicknamed “Fat Leonard.” (See The Washington Post article, “The Man Who Seduced the 7th Fleet,” here.)

July 23, 2015 By AMK

Three U.S. naval officers censured in ‘Fat Leonard’ corruption probe

Three U.S. admirals were censured for dining at “extravagant” banquets in Hong Kong, Malaysia and Singapore and accepting other gifts from an Asian defense contractor at the center of a bribery scandal that continues to rattle the highest ranks of the Navy, according to documents released late Friday.

One dinner alone cost $23,061, or about $768.72 for each of the 30 people who attended. To get around ethics rules, the admirals reimbursed the contractor — a Malaysian national known in Navy circles as “Fat Leonard” — but only for a fraction of the expense, writing personal checks for between $50 and $70 each, the documents show.

The incidents occurred nearly a decade ago, while all three officers — Vice Adm. Michael H. Miller, Rear Adm. Terry B. Kraft and Rear Adm. David R. Pimpo — were assigned to the USS Ronald Reagan aircraft carrier strike group. Each was forced to retire this summer.

Keep reading this article at: https://www.washingtonpost.com/world/national-security/three-us-admirals-censured-in-fat-leonard-corruption-probe/2015/07/17/7f29ca1a-2b1f-11e5-a5ea-cf74396e59ec_story.html

February 18, 2015 By AMK

‘Fat Leonard’ contracting scandal jams up dozens of US Navy flag moves

It was a festive day at the U.S. Naval Academy last July 23 as the US Navy’s top leadership gathered in Annapolis, Maryland, for a change of command and retirement ceremony. Vice Adm. Mike Miller was ending a four-year tour as academy superintendent and retiring with honors after a 40-year career.

Except that when the hoopla died down, Miller wasn’t allowed to leave the service just yet. Even though his official online biography reads “retired,” he’s still being carried on the Navy’s active-duty rolls — at a reduced two-star level. And although he has no specific job — or billet, in Navy-speak — he counts against the service’s allocated total of 219 admirals.

Defense officials said Miller is one of an estimated three dozen flag officers under federal investigation for potential wrongdoing in the Glenn Defense Marine Asia (GDMA) case, also known as the “Fat Leonard” affair, after the nickname of the company’s leader, Leonard Glenn Francis.

Keep reading this article at: http://www.defensenews.com/story/defense/naval/navy/2015/02/08/navy-gdma-glenn-defense-marine-asia-fat-leonard-scandal-investigation-justice-admirals-flags/22978631

Search Results for: fat

A U.S. Navy lieutenant commander is the latest military official to plead guilty to a bribery charge in federal court and admitted to accepting cash, luxury hotels and prostitutes from a foreign defense contractor in exchange for proprietary Navy information.

Two former executives of a foreign defense contractor have been charged with participating in a conspiracy to submit fraudulent information, price quotes, claims and invoices to the U.S. Navy in an effort to steal millions of dollars as part of a years-long corruption and fraud scheme.

A former Department of Defense (DoD) supervisory contracting officer pleaded guilty last week to charges that he accepted bribes from the owner of the foreign defense contractor at the center of a massive bribery and fraud scandal.

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