The massive contract fraud and corruption scandal linked to Leonard Glenn Francis, the former CEO of Glenn Defense Marine Asia (GDMA), a defense contracting firm based in Singapore, just landed a Naval Criminal Investigative Service (NCIS) supervisory special agent in prison for for 144 months.
John Bertrand Beliveau II was sentenced on Friday, Oct. 14, 2016 for disclosing sensitive law enforcement reports to Leonard Francis, a target of a criminal fraud investigation into favors he made in exchange for cash, luxury travel and the services of prostitutes. Francis’ reputation for corruption and bribery in recent years has led him to be nicknamed “Fat Leonard.” (For background, see The Washington Post article, “The Man Who Seduced the 7th Fleet,” here.)
According to admissions made as part of his plea agreement, Beliveau helped former GDMA CEO “Fat Leonard” Francis perpetrate a massive fraud scheme on the U.S. Navy by providing information that allowed Francis to avoid, stall and thwart criminal investigations into misconduct by GDMA. As part of the sentence handed down by U.S. District Judge Janis L. Sammartino, Beliveau was also ordered to pay $20 million in restitution to the Navy.
According to his plea agreement, Beliveau acknowledged that he regularly searched confidential NCIS databases for reports of investigations related to Francis and GDMA. Over the course of years, he helped Francis avoid multiple criminal investigations by providing copies of these reports. These reports not only tipped off Francis that he was the target of a criminal investigation, but provided sensitive law enforcement information about the ongoing investigation, including:
- the identities of the subjects of the investigations,
- information about witnesses, including identifying information about cooperating witnesses and their testimony,
- the particular aspects of GDMA’s billings that were of concern to the investigations,
- the fact that the investigations had obtained numerous email accounts and the identities of those accounts,
- the reports to prosecutors and their interactions with the investigations, and
- planned future investigative activities.
Beliveau admitted that he attempted to cover up his involvement by asking Francis to delete incriminating emails and deactivate an email account, and warned Francis about indictments and a warrant on his email account. Beliveau also admitted that he counseled Francis on how to perpetuate his fraud scheme and evade detection. In July 2011, Beliveau advised Francis to respond to the pending NCIS investigation into GDMA’s submission of a fraudulent claim to the U.S. Navy for dockage and wharfage fees for certain U.S. Navy ship visits to Thailand.
In return for providing him with information, Francis provided Beliveau with envelopes containing cash, luxury travel from Virginia to Singapore, the Philippines and Thailand. On many occasions, beginning in 2008 and continuing through 2012, while Beliveau was posted in Singapore, Francis provided him with prostitutes, lavish dinners, entertainment and alcohol at high-end nightclubs. The tab for each of these outings routinely ran into the thousands of dollars.
So far, a total of 16 individuals have been charged in connection with the GDMA corruption and fraud investigation. Including Beliveau, 11 of those are current or former U.S. Navy officials, including Admiral Robert Gilbeau, Captain (ret.) Michael Brooks, Lt. Commander Gentry Debord, Commander Bobby Pitts, Captain Daniel Dusek, Commander Michael Misiewicz, Lt. Commander Todd Malaki, Commander Jose Luis Sanchez, Petty Officer First Class Daniel Layug and Paul Simpkins, a former DoD civilian employee who oversaw contracting in Singapore. Details include:
- Gilbeau, Debord, 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.
- 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.
The Defense Criminal Investigative Service (DCIS), the Defense Contract Audit Agency (DCAA) and the NCIS are continuing their investigation.