Malaysian businessman bribed 'dozens' of US Navy officers with prostitutes and suckling pigs
Defence contractor "Fat Leonard" Francis pleads guilty in the biggest corruption scandal in the Navy's history
Leonard Francis, a 51-year-old Malaysian defence contractor known as "Fat Leonard"
By Raf Sanchez, Washington
4:20PM GMT 16 Jan 2015
The US Navy is facing the biggest corruption scandal in its history after a Malaysian businessman admitted to bribing dozens of its officers with wads of cash, the services of prostitutes and meals of suckling pig.
Four current and former officers have already been convicted in the unfolding scandal and US prosecutors said an "active, ongoing" hunt is underway for other other corrupt sailors.
At the heart of the bribery network was Leonard Francis, a 51-year-old Malaysian defence contractor known as "Fat Leonard" because of his ample size.
Over the course of a decade, Francis conspired to bribe senior officers and enlist their help in making tens of millions of dollars in fraudulent claims to the US Navy.
His list of bribes for the Americans reads like a Harrods catalogue: "designer handbags and leather goods, watches, fountain pens, fine wine, champagne, Scotch, Kobe beef, Spanish suckling pigs, designer furniture, Cuban cigars, consumer electronics, ornamental swords, and hand-made ship models".
Court documents give forensically-detailed timelines of the quid pro quo between Francis and the US officers.
Beginning in July 2010, Francis started providing prostitutes and luxury hotel stays to Captain Daniel Dusek, the deputy director of operations for the US 7th fleet, which is based in the Pacific.
On July 13 2010, Cpt Dusek gave Francis's company classified files showing the scheduled movements of US ships. Francis then gave Dusek a hotel room in the Shangri-La in the Philippines "and the services of two prostitutes while there".
After the Philippines stay, Cpt Dusek used his influence to get the aircraft carrier the USS Abraham Lincoln to dock in a Malaysian port run by Francis. Francis's company billed the Navy more than $1.5 million (£990,000) for services during the carrier's four-day stay.
Cpt Dusek pleaded guilty to conspiracy to commit bribery on Thursday, the same day Francis pleaded guilty to bribery and fraud charges. Cpt Dusek is the most senior of four officers convicted so far and court files show that at least one unnamed lieutenant commander is in the sights of federal prosecutors.
"It is astounding that Leonard Francis was able to purchase the integrity of Navy officials by offering them meaningless material possessions and the satisfaction of selfish indulgences,” said Laura Duffy, a federal prosecutor in southern California.
“In sacrificing their honour, these officers helped Francis defraud their country out of tens of millions of dollars. Now they will be held to account.”
The US Justice Department said the convictions so far were only part of an "active, ongoing investigation" into corruption within the Navy.
“We will continue our efforts to root out those involved in this long-running corruption scheme, both inside and outside the Navy," said Leslie Caldwell, an assistant US attorney general. "The interests of justice and national security demand nothing less.”
Among those who have already pleaded guilty is John Beliveau, an agent with the Navy Criminal Investigative Service (NCIS), the Navy's internal police force.
In return for "cash, travel and entertainment expenses, the services of prostitutes" Beliveau, would search NCIS databases for any evidence that the Navy had got wind of Francis's scheme.
Beliveau offered advice to Francis about how to avoid detection and in August 2012 alerted the businessman that the Navy appeared to be closing in.
Believeau pleaded guilty to bribery in December 2013, two months after Francis was arrested in an FBI sting operation at San Diego hotel.
Court files also name Captain Michael Misiewicz, who was allegedly given cash and hotel stays in return for classified information about Navy operations.
"See, you ask - I deliver!" Cpt Misiewicz allegedly wrote to Francis after giving detail of ship movements. Cpt Misiewicz has pleaded not guilty to a charge of conspiracy to commit bribery.
