The U.S. government has agreed to lesser charges for five military officers caught in the “Fat Leonard” bribery scandal, attorney letters submitted in court have said.
Four defense attorneys submitted the letters on Friday to a San Diego federal judge, the San Diego Union-Tribune daily newspaper reported.
The case was marred by the escape of Leonard Glenn Francis, the key figure in the worst corruption scheme in the Navy’s history. In 2015, Francis, better known as “Fat Leonard”, pleaded guilty to bribery and fraud charges, defrauding the U.S. Navy of at least $35 million. He admitted using more than $500,000 to bribe officers of the U.S. Pacific-based Seventh Fleet for classified information on American warship movements.
Letters submitted on Friday by attorneys for three other Navy officers, who have already been sentenced, say that prosecutors have made a deal to dismiss all charges against former Navy Cmdr. Stephen Shedd, who pleaded guilty to two bribery charges.
In September, the U.S. Attorney’s Office admitted to “serious issues” with the case and prosecution errors involving evidence. In that same hearing, U.S. District Judge Janis Sammartino called the government’s conduct “outrageous.” She previously ruled a prosecutor committed “flagrant misconduct” by withholding information from defense lawyers.
Francis, the Malaysian national behind the Fat Leonard scandal, escaped from house arrest in San Diego on September 4, 2022. The businessman, who masterminded the bribery of navy officials, had been just three weeks from sentencing when he escaped.
U.S Marshals Office
The information from the bribed officers was used to maximize profits for Francis’ Singapore-based company, Glenn Defense Marine Asia, which took contracts to service the fleet. Francis even had aircraft carriers diverted to ports that his firm controlled, so he could charge them for resupply.
Francis was arrested at a San Diego hotel in 2013, after being lured to the U.S. as part of a sting operation.
After suffering from a number of health problems, including kidney cancer, Francis was released on medical furlough and, since at least 2018, has been under house arrest.
During this time, Francis acted as a cooperating witness with federal prosecutors, who were building cases against a number of naval officers involved with the scheme.
In June 2022, a jury convicted four ex-U.S. naval officers of receiving bribes, conspiracy to commit honest services wire fraud, and conspiracy to commit bribery.
Francis was eventually captured in Venezuela in September 2022 and remains in custody there.
It emerged during the investigation that, between 2006 and 2013, Francis handed out lavish meals, alcohol and Cuban cigars, among other gifts. The Washington Post described in February 2018 how, at his parties, naval officers reveled in the attention of an “armada of prostitutes.”
According to documents accessed through the Freedom of Information Act, Francis hosted feasts and sex parties on 45 separate occasions over a span of seven years.
Prosecutors said that nine sailors from the USS Blue Ridge, the operations vessel at the center of the scandal, leaked classified ship movements and other secrets to Francis.
The defense contractor used his network to get his hands on secret itineraries, and utilized his assets to reroute vessels, including aircraft carriers, to ports controlled by his firm and then overcharge for fuel, services and supplies.
The extent of the corruption has proven so far-reaching that it has raised questions about how much admirals knew. More than 60 admirals have come under investigation by the Justice Department over their interactions with Francis and his company.
Uncommon Knowledge
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