The Department of Justice announced Thursday, the guilty pleas of owner/CEO of Glenn Defense Marine Asia, 51-year-old Leonard Francis, his company, and 47-year-old U.S. Navy Captain Daniel Dusek on various Corruption Conspiracy charges.
Francis, the CEO of GDMA, pled guilty to bribery and fraud charges in federal court and admitted to being involved in a decades-long conspiracy that involved “scores” of U.S. Navy officials. He also stated that that conspiracy involved tens of millions of dollars in fraud as well as millions in bribes and various gifts.
Francis admitted in court that his company and himself routinely overbilled for goods and services that included fuel, tugboat services, and sewage disposal. He told the court that he gave Navy offficials millions of dollars in gifts and expenses that included over $500,000 in cash as well as “prostitution services; travel expenses, including first class airfare, luxurious hotel stays and spa treatments; lavish meals, including Kobe beef, Spanish suckling pigs, top-shelf alcohol and wine; and luxury gifts, including Cuban cigars, designer handbags, watches, fountain pens, designer furniture, electronics, ornamental swords and hand-made ship models,” the Justice Department reported.
In return for all this, Francis said in court that he recceived classified and confidential U.S. Navy information on ship schedules and also received preferential treatment in the contracting process. Francis also admitted to bribing a federal criminal investigator to find out details on the federal investigation into his company.
Captain Daniel Dusek also pled guilty in court on Thursday. He pled out to a single charge of conspiracy to commit bribery. Dusek admitted in court that he used his influence as Deputy Director of Operations for the 7th Fleet in Japan and as the commanding officer of the USS Bonhomme Richard and Executive officer of the USS Essex to benefit Francis and his company by directing Naval ships to port terminals owned by Francis. In return, the DOJ states that Dusek received lavish meals, alcohol, entertainment, gifts, dozens of nights and incidentals at luxury hotels, including the Marriott Waikiki and the Shangri-La in Makati, Philippines, and the services of prostitutes. He is scheduled to be sentenced for his crime on April 3rd, 2015.
To date, four other current and former Navy officials, U.S. Navy Commander Jose Luis Sanchez, U.S. Naval Criminal Investigative Service Special Agent John Beliveau, U.S. Navy Petty Officer First Class Dan Layug and GDMA employees Alex Wisidagama and Edmond Aruffo, have pleaded guilty for their roles in the conspiracy.
This investigation is still on-going by NCIS, DCIS, and DCAA. These agencies are requesting that anyone with information in this case to contact them through their anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.