Fat Leonard: Biggest Navy Scandal in Decades
It’s a scandal that involves a Malaysian Defense Contractor, Leonard Francis, bribing “scores” of Navy officials with lavish parties, prostitutes, and gifts worth millions of dollars in return for classified Navy information that he used to gouge the Navy for port services. Leonard Francis, known as Fat Leonard, is the President and CEO of Glenn Defense Marina Asia; a company which the Washington Post reports “was a pillar of U.S. maritime operations for a quarter-century.The 7th Fleet depended on the firm more than any other to refuel and resupply its vessels.”
The scheme was this: Francis ingratiated himself with naval officials by throwing extravagant parties, providing prostitutes, and giving millions of dollars in gifts including hotels, airfare, concert tickets and cash. Francis operated out of Singapore and thus, primarily worked with the US Navy’s 7th fleet which consists of 60-70 ships. Francis’ company Glenn Defense became the primary re-fueler and re-supplier of the fleet. He padded bills and overcharged the Navy by at least $20 million. Francis developed so many contacts and moles that any disputes with his bills were squashed. A junior naval officer, David Schauss, reports raising concern about Glenn Defense’s bills only to be hushed up by higher ranking officials. Additionally, Francis received classified information from navy officials in order to further his operations. He was given reports on the US Navy’s movements; information which he then used to order his moles in the Navy to redirect ships to the ports he served. Even as he was being investigated he was given information regarding the investigations.
Francis ultimately confessed to bribing “scores” of Navy officials with cash, sex and gifts worth millions of dollars — all so he could win more defense contracts and overcharge with impunity. Currently more than 200 people are “under scrutiny” for their connections to the Fat Leonard scandal. Thirteen people have plead guilty. Six others have been charged with crimes. Four admirals have been disciplined. Eight new people have been recently indicted, including an admiral. One of the guilty pleas is Robert Gilbeau, the first active duty admiral to be convicted of a felony. Yet, despite his conviction he still receives a monthly pension check for $10,000 paid for by the tax payers. For the full investigative report from the Washington Post see below.
The man who seduced the 7th Fleet | The Washington Post
Prostitutes, vacations and cash: The Navy officials ‘Fat Leonard’ took down – Washington Post
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