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Logistics/Freight Forwarding
Pandan, Clementi, Singapore
Nationality of Foreign Officials: Australia
Summary of Allegations:
On 31 August 2018, former Australian navy commander Alexander Bryan Gillett allegedly received gifts from Francis and leaked marine shipping schedule and movements in the last decade, which gave Francis unfair advantage over peer bidders for military contracts. Gillett confessed the wrongdoings in November 2016 and resigned in January 2017.
Approximate Alleged Payments to Foreign Officials: Unspecified
Business Advantage Allegedly Obtained: Unfair advantage of military contract bidding
Nationality of Foreign Officials: United States
Summary of Allegations:
The U.S. government has barred Singapore-based Glenn Defense Marine Asia ("GDMA") from new contracts following a U.S. Navy bribery investigation that named GDMA and its chief executive and owner, Leonard Glenn Francis. Under the ban that went into effect 19 September 2013, the U.S. government terminated nine contracts the company had with the Navy worth USD 205 million.
The Navy suspension came in response to a criminal complaint in the U.S. District Court in Southern California in September that accused Francis of bribing government employees in exchange for confidential information related to Navy contracts. The bribes allegedly included travel, entertainment, prostitutes and other favors in return for classified information about an ongoing NCIS investigation into his company.
GDMA was the chief husbanding agent for the Navy in the Pacific Rim area. It organized tugboats, security, fuel, waste removal and other services for Navy ships making port calls in the region. GDMA's contracts with the Navy started ten years ago. Francis and employees of GDMA obtained classified information that allowed his company to overbill the U.S. military by at least USD 38.4 million. Prosecutors said he provided lavish hotel rooms, prostitutes and plane tickets to Navy officials who cooperated.
Leonard Glenn Francis had bribed Navy officials beginning in 1997, when Francis offered Robert J. Gilbeau and another officer free hotel rooms, dinners and prostitutes. Francis allegedly bribed two dozen other Navy officials beginning in 2004.
Neil Peterson, Vice President for Global Operations for GDMA, and Linda Raja (Raja Maslindah Raja Shamsad), General Manager for Singapore, Australia and the Pacific Isles for GDMA, submitted more than USD 5 million in false claims and invoices to the U.S. Navy. Peterson and Raja also allegedly worked to perpetuate and cover up GMDA's 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.
On 31 January 2014, U.S. Representative Darrell Issa announced that the House Oversight and Government Reform Committee launched a formal investigation into the Navy bribery scandal.
Approximate Alleged Payments to Foreign Officials: USD 500,000 in forms of cash, prostitutes, luxury travel, entertainment, concert tickets, etc.
Business Advantage Allegedly Obtained: Classified information worth millions of dollars, including ship movements, and USD 38.4 million in overcharged products and services
Agencies: Australia: unspecified
Results: Prosecution of Public Officials
Year Resolved: 2019
Compliance Monitor:
Ongoing: No
Details:
On 31 August 2018, Alexander Bryan Gillett pleaded guilty to abusing public office.
On 14 February 2019, an Australian court sentenced Gillett to 23-month community service (with an anticipation to complete 150 hours) instead of imprisonment, which was regarded as a leniency considering his early guilty plea and assistance to the investigation.
Agencies: Singapore: unspecified
Results: Prosecution of Individuals
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:
21 June 2018: Singapore prosecutors charged Sharon Rachael Gursharan Kaur for her involvement in bribing U.S. Navy and requested a sentencing of 33 months.
6 July 2018: a Singapore court sentenced Gursharan Kaur Sharon Rachael to 33 months of jail.
Agencies: United States: Department of Justice
Results: Prosecution of Individuals, Restitution, Suspension/Debarment
Year Resolved: 2014
Compliance Monitor:
Ongoing: No
Details:
In mid-September 2013, Francis was arrested and charged with conspiracy in a bribery scheme.
On 18 March 2014, Wisidagama pleaded guilty to conspiracy to defraud the United States for his role in a scheme to overbill the U.S. Navy for husbanding services. On 18 March 2016, Wisidagama was sentenced to 63 months in prison and ordered to pay USD 34.8 million restitution to the Navy.
On 3 July 2014, Ed Aruffo, who started a second career working for GDMA, pleaded guilty in federal court, admitting that he and others overcharged the Navy by up to USD 2.5 million for port services to American ships and then used some of the proceeds to treat Navy officials to lavish dinners, cocktails and entertainment.
On 15 January 2015, Francis pleaded guilty to paying about USD 500,000 in bribes to Navy officials. Francis faces up to 25 years in prison and agreed to forfeit USD 35 million in ill-gotten gains. Francis was charged with providing the NCIS agent with travel, entertainment, prostitutes and other favors in return for classified information about an ongoing NCIS investigation into his company.
On 15 September 2016, Neil Peterson, Vice President for Global Operations for GDMA, and Linda Raja, General Manager for Singapore, Australia and the Pacific Isles for GDMA, were arrested in Singapore and each charged with one count of conspiracy to defraud the US Navy for GDMA's financial benefit; one count of conspiracy to commit wire fraud; and multiple counts of making false claim. On 19 September 2016, US sought the extradition of Peterson and Raja from Singapore. On 21 September 2016, Singaporean court approved the extradition of both Peterson and Raja.
On 31 October 2016, Peterson and Raja were arraigned in federal court in San Diego, after their extradition from Singapore, and ordered detained pending trial.
On 9 May 2017, Peterson and Raja pleaded guilty to one charge of conspiracy to defraud the United States. On 12 August 2017, Peterson and Raja were sentenced to 70 and 46 months in prison.
On 5 September 2022, it was reported that Leonard Glenn Francis had escaped house arrest in San Diego CA, three weeks ahead of his sentencing. U.S. law enforcement agencies are searching for Francis.
On 22 September 2022, Leonard Glenn Francis was arrested in Venezuela.
On 20 December 2023, it was announced that Leonard Glenn Francis was extradited to US custody as part of a Venezuelan prisoner swap
Agencies: United States: Department of Justice
Results: Censure, Conviction, Criminal Fine, Prosecution of Public Officials, Restitution
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:
In mid-September 2013, Commander Michael Misiewicz and Supervisory Special Agent John Bertrand Beliveau II were arrested and charged with conspiracy in a bribery scheme.
On 18 December 2013, John Bertrand Beliveau II with NCIS pleaded guilty to conspiracy to commit bribery, admitting he tipped a Singapore-based Navy contractor about ongoing criminal probes in exchange for prostitutes, cash and luxury travel.
On 17 April 2014, Petty Officer First Class Daniel Layug was arrested on allegations of taking cash, luxury travel and consumer electronics in exchange for classified ship schedules and other sensitive Navy information that he gave to GDMA. According to the DOJ, Layug tried to hide his illicit activities by describing the classified ship-movement information as "golf schedules" and opening a bank account under the name of his infant daughter, into which he deposited an "allowance." On 20 May 2014, Layug pleaded guilty in federal court, admitting he accepted more than USD 10,000 in cash, travel expenses and gifts in exchange for providing classified information to GDMA. On 21 January 2016, Layug was sentenced to 27 months in prison and ordered to pay USD 15,000 in fine.
On 6 January 2015, Commander Jose Luis Sanchez pleaded guilty to bribery and conspiracy to commit bribery.
On 15 January 2015, Captain Daniel Dusek became the highest-ranking Navy officer to enter a guilty plea to conspiracy to commit bribery in the case after making his first appearance in federal court in San Diego and waiving his right to present his case before a federal grand jury. On 25 March 2016, Dusek was sentenced to 46 months in prison for giving classified information to Fracis in exchange for prostitutes and lvish gifts and ordered to pay a USD 70,000 fine and USD 30,000 in restitution to the US Navy.
In February 2015, three rear admirals of the U.S. Navy were censured for their handling of GDMA between 2006 and 2007. The admirals allegedly secured from Francis sightseeing tours and expensive hotel accommodations, expensive dinners and shopping outings for themselves and other officers. All three have since retired from the US Navy.
On 3 February 2015, Petty Officer First Class Paul Simpkins, former senior federal contracting officer, was arrested for conspiracy to commit bribery. Simpkins has been ordered to be detained pending a bond hearing set for 4 February 2015.
On 15 April 2015, Lieutenant Commander Todd Dale Malaki pleaded guilty to conspiracy to commit bribery. On 29 January 2016, Malaki was sentenced to 40 months in prison and to pay USD 15,000 in restitution to the Navy and USD 15,000 in fine.
On 3 December 2015, Gursharan Kaur Sharon Rachael, a former US Navy lead contract specialist, was charged with seven counts of corruptly receiving a total of USD 130,278, in the form of cash and paid accommodations in luxury hotels from GDMA, and two money-laundering charges involving the conversion of the cash bribes to pay for an insurance policy and an option to buy a condominium. Kaur was granted USD 50,000 bail and faces a fine of up to USD 100,000 and a jail term of up to five years on each corruption charge. The maximum penalty for the money laundering offenses is a USD 500,000 fine and seven years of imprisonment each. A pre-trial conference is scheduled for 14 January 2016.
On 28 January 2016, Michael Misiewicz admitted to providing classified information to Francis and pleaded guilty to federal corruption charges in U.S. District Court in San Diego. Misiewicz was charged with accepting paid travel, the services of prostitutes and Lady Gaga concert tickets from GDMA by prosecutors in southern California. In return, the naval commander allegedly sent classified information to GDMA, such as ship movement details, and helped arrange visits by U.S. Navy vessels to ports where GDMA had contracts. On 29 April 2016, Misiewicz was sentenced to 78 months in prison and ordered to pay USD 100,000 in fines and forfeit USD 95,000 in proceeds.
On 25 May 2016, Retired Navy Captain Michael Brooks, Commander Bobby Pitts, and Lieutenant Commander Gentry Debord were charged in the Southern District of California in relation to their interactions with Leonard Francis. Brooks and Debord were each charged with one count of conspiracy to commit briber and Pitts was charged with one count of conspiracy to defraud the US and two counts of obstruction of justice. Pitts pleaded guilty to conspiracy to defraud the U.S. government on August 15, 2017 (see below).
On 27 May 2016, Michael Brooks and Bobby Pitts made their initial appearance in the US District Court for the Eastern District of Virginia and Debord appeared in the US District Court for the Southern District of California. Brooks was granted USD 50,000 bond, Pitts USD 5,000 bond, and Debord USD 40,000 bond secured by real property. In addition, Pitts was ordered to be subject to electronic monitoring and to appear in the Southern District of California on 10 June 2016 and Debord was ordered to appear for a preliminary hearing in the Southern District of California on 9 June 2016.
On 9 June 2016, Rear Admiral Robert Gilbeau, a special assistant to chief of the Navy Supply Corps, pleaded guilty to one count felony charge of making false statement, admitting to concealing the duration and extent of his relationship with Francis. He was sentenced to 18 months imprisonment on 17 May 2017.
On 23 June 2016, Paul Simpkins pleaded guilty to charges that he accepted bribes from Francis. As part of his plea, Simpkins admitted that from approximately May 2006 until September 2012, Francis provided cash, travel expenses and prostitution in return for Simpkins' efforts to steer contracts to GDMA and intervene on GDMA's behalf in contracting disputes with the US Navy.
On 13 October 2016, Lt. Commander Gentry Debord pleaded guilty, admitting that he instructed GDMA executives to inflate their invoices to the Navy to cover the cost of various illicit gifts provided to Debord, provided Francis with internal and proprietary Navy information, and misusing his position and influence to advance GDMA's interests, including approval of inflated invoices submitted by Francis/GDMA.
On 14 October 2016, John Bertrand Beliveau II was sentenced in federal court to 144 months in prison for disclosing sensitive law enforcement reports to GDMA in exchange for cash, luxury travel and the services of prostitutes. In addition, Beliveau was also ordered to pay USD 20 million in restitution to the Navy.
On 15 November 2016, Michael Brooks pleaded guilty to one count of conspiracy to commit bribery. On 16 June 2017, Brooks was sentenced to a prison term of 41 months and ordered to pay fines and restitution totaling USD 72,000.
In December 2016, the DOJ reportedly indicated that there is no end in sight to the investigation.
On 2 December 2016, Simpkins was sentenced to 72 months in prison and ordered to pay USD 450,000 in restitution, to forfeit USD 150,000 and pay a USD 50,000 fine.
On 13 January 2017, Gentry Debord was sentenced to 30 months in prison and ordered to pay a USD 15,000 fine and USD 37,000 in restitution to the Navy.
On 16 February 2017, Mario Herrera was charged with one count of conspiracy to commit bribery and arrested in San Antonio, Texas. Herrera allegedly accepted luxury travel and entertainment expenses, including the services of prostitutes, in exchange for assisting Francis and GDMA to win Navy contracts. For example, Herrera allegedly costed the US Navy USD 3.6 million by directing ships to take alternate routes that benefited GDMA on two separate occasions. Herrera is scheduled to make his initial appearance in federal court in the Western District of Texas.
On 10 March 2017, a grand jury indictment was filed charging retired U.S. Navy Rear Admiral Bruce Loveless and eight other active or retired officers with allegedly accepting luxury travel, elaborate dinners and prostitution from GDMA and Francis. In exchange the defendants allegedly provided GDMA and Francis with classified and internal U.S. Navy information. Eight of those charged entered not guilty pleas. Motions and trial will be set on 22 September 2017.
On 6 June 2017, retired U.S. Navy commander David Kapaun pleaded guilty to fraud for lying about his relationship with Francis on a security clearance update form. Kapaun did not disclose receiving hotel stays, dinners or prostitutes from Francis. Kapaun was sentenced on 11 September 2017 to 18 months in federal prison.
On August 15, 2017, active-duty U.S. Navy commander Bobby Pitts pleaded guilty in connection with his efforts to obstruct the federal criminal investigation of Leonard Glenn Francis, the owner and CEO of GDMA. Pitts is set to be sentenced on December 1.
On August 18, 2017, former U.S. Navy Captain Jesus Vasquez Cantu pleaded guilty to a charge of conspiracy to commit bribery. He is to be sentenced on November 9, 2017.
11 January 2018 - Brian Ware, Chief Warrant Officer 4, pleaded guilty to ethics violations during a court-martial at Naval Station Norfolk and was sentenced to six months of confinement and a $10,000 fine. (Ware accepted more than $8,000 worth of hotel rooms, cellphones and personal drivers during more than a dozen port visits in Asia that were paid for by Glenn Defense Marine Asia in exchange for Ware's purchase of food orders for the Navy from Glenn Defense, the prices of which Ware knew were significantly marked up).
5 February 2018 - Troy Amundson, former U.S. Navy Commander, pleaded guilty in federal court in San Diego to conspiracy in the bribes-for-secrets scandal. He faces up to five years in prison and a $250,000 fine. Sentencing is set for April 27.
A Washington Post article on 5 November 2017 stated that the Justice Department is investigating over 440 active-duty and retired military personnel, including 60 admirals, for potentially violating military law or federal ethics rules through their interactions with Francis and Glenn Defense Marine.
08 March 2018 - active-duty U.S. Navy commander Jason Starmer and captain John Steinberger pled guilty to dereliction of duty related to the bribery scheme.
20 June 2018 – U.S. Navy censured several retired and current officers for ethical breach uncovered by the ongoing investigation on the Fat Leonard bribery scheme. The disciplined navy officers include the retired Rear Adm. Richard Wren, Capt. Charles Johnson, and current Capt. Timothy Conroy. All were found having improperly accepted gifts, dinners, or lavish alcohol from Glenn Defense Marine Asia.
18 August 2018 - retired U.S. sailors David W. Hass, Ricarte Icmat David, and Brooks Alonzo Parks were prosecuted for accepting bribes from Fat Leonard to trade their influence and access in the Navy. They paid inflated invoices provided by Leonard’s company Glenn Defense Marine Asia, ported ships to the company’s wharf, and provided Leonard favors including leaking confidential internal records of his competitor.
September 2018 - Ricarte Icmat David pleaded guilty to one count of conspiracy to commit honest services fraud for receiving bribes from Francis between 2005 and 2009.
19 October 2018, a U.S. court sentenced Troy Amundson to 30 months in prison with a three-year supervised release, a $10,000 fine and $21,625.60 in restitution for conspiracy to commit bribery.
13 November 2018, retired U.S. Navy captain Jeffrey Breslau pleaded guilty to criminal conflict of interest charges in front of a U.S. District Court. Between 2012 and 2013, Breslau served as a captain in U.S. Navy and without disclosing to the Navy, provided consulting services to Fat Leonard, including ghostwriting Fat Leonard's emails and preparing talking points for him before meetings with Navy personnel. Ricarte Icmat David was sentenced to a year of supervised release, with a $30,000 restitution.
31 October 2020, a U.S. court sentenced Brooks Alonzo Parks to 27-month imprisonment with an order to pay restitution of US$ 25,405.76 regarding his guilty plea to conspiracy to commit bribery.
26 January 2022, former Cmdr. Stephen Shedd pleaded guilty to two bribery charges in San Diego federal court. In his plea agreement, Shedd admitted to sending Francis classified information regarding the planned movements of several ships, including a change to the schedule of the guided missile destroyer Fitzgerald in 2008 that was made to accommodate Francis. Shedd also admitted to providing Francis with proprietary invoice information on Francis’ competitors throughout Southeast Asia.
On 03 February 2023, David Haas was sentenced to 30 months in federal prison for taking bribes in exchange for steering lucrative contracts to a foreign defense contractor. He must report to the U.S. Bureau of Prisons on 12 May 2023 to begin his sentence.
On 6 September 2023, it was reported that former Capts. David Newland, James Dolan, and David Lausman and former Comdr. Mari oHerrera, had their felony convictions vacated following allegations of prosecutorial misconduct.
Agencies: United States: Department of Justice
Results: Suspension/Debarment
Year Resolved: 2013
Compliance Monitor:
Ongoing: No
Details:
Under the ban that went into effect 19 September 2013, the U.S. government terminated nine contracts GDMA had with the Navy worth USD 205 million.