US Navy commander pleads guilty to accepting bribes from Singapore-based contractor

[WildestDreams]

US Navy commander pleads guilty to accepting bribes from Singapore-based contractor

Greed and lust sink officer who accepted kickbacks from Singapore defence contractor to pass on classified ship schedules

PUBLISHED : Wednesday, 07 January, 2015, 11:03am
UPDATED : Thursday, 08 January, 2015, 5:30am

Reuters in San Diego

Navy Commander Jose Luis Sanchez admits bribery

As a US Navy commander, Jose Luiz Sanchez should have embodied the service's unofficial motto of "not self, but country".

Instead, he used his Asian posting and the privileged information it afforded to avail himself of cash, prostitutes and luxury hotel stays, courtesy of a Singapore-based defence contractor at the heart of a wide-ranging corruption investigation.

Sanchez, 42, has pleaded guilty in federal court in San Diego, California, to bribery charges - becoming the highest-ranking officer convicted in connection with the case over maritime services firm Glenn Defence Marine Asia (GDMA), led by Malaysian businessman Leonard Glenn Francis.

GDMA is accused of operating a corrupt network of US naval staff to provide secret information about the whereabouts and schedules of US warships.

"[He] lost sight of the navy's core values and embraced a lifestyle of greed," US Attorney Laura Duffy said.

Sanchez has admitted accepting bribes worth between US$30,000 (HK$233,000) and US$100,000 in exchange for passing classified ship schedules along to GDMA. The company held US$200 million in contracts to service navy ships from the Seventh Fleet at ports in Thailand, the Philippines, Malaysia and Singapore.

"Commander Sanchez sold out his command and country for cash bribes, luxury hotel rooms and the services of prostitutes," said Assistant Attorney General Leslie Caldwell, of the Justice Department's Criminal Division. "Instead of free stays at the Shangri-La hotel, Sanchez is [now] facing many nights in federal prison."

Sanchez is the fifth of seven defendants charged in the case. Two other navy officials, former Naval Criminal Intelligence Service agent John Beliveau and logistics officer Dan Layug, have already pleaded guilty.

The fourth, Commander Michael Vannak Khem Misiewicz, 47, has been formally indicted on seven additional bribery charges. He has pleaded not guilty.

Three officials of GDMA have also been charged, and two have pleaded guilty.

Francis pleaded not guilty to one count of conspiracy to commit bribery in September 2013 and remains in federal custody.

According to the plea agreement, Sanchez served as a fleet logistics officer from 2008 until 2013, while stationed in Japan. He admitted that he gave Francis classified information about ship and submarine movements that helped the GDMA owner draw the ships into ports where he held service contracts.

In his plea agreement, Sanchez said he also tipped Francis off to federal investigations into the firm for overbilling the navy, and he used his influence to benefit the contractor.

In exchange, Sanchez said, on several occasions Francis paid for travel, prostitutes and hotel visits.

Sanchez faces a maximum prison sentence of 20 years. His sentencing is set for March.

Prosecutors say the scheme cost taxpayers more than US$20 million for bills that were either padded or listed services that were never performed.

Francis was known to provide lavish parties for US Navy officers. The cost of those parties was hidden in the padded bills for their ships, prosecutors say.

There are no allegations that the US naval officers or officials knew the bills submitted by Francis' company were bogus.

Additional reporting by Tribune News Service