Businessman bought Navy secrets with prostitutes, Lady Gaga tickets

[Neptune]

Businessman bought Navy secrets with prostitutes, Lady Gaga tickets

November 4, 2013 12:30PM ET

Malaysian contractor obtained military secrets by bribing commander; investigation could implicate higher-ups

Misiewicz caught the world's attention when he made an emotional return as a U.S. Navy commander to his native Cambodia, where he was rescued as a child from the violence of the Khmer Rouge. Hehas attracted international media coverage once again, this time for passing confidential information on ship routes to a Malaysian businessman.Heng Sinith/AP

A Malaysian businessman whose company has serviced U.S. warships for 25 years stands accused of buying military secrets by lining up prostitutes, Lady Gaga tickets and other bribes for a U.S. commander.

Prosecutors in a federal court case in San Diego say Leonard Francis, nicknamed "Fat Leonard," worked his extensive connections to obtain military secrets in a scandal that signals serious national-security breaches and corruption in the Navy.

The accusations unfolding amid an ongoing investigation have set off high-level meetings at the Pentagon with the threat that more people, including those of higher rank, could be implicated. A Nov. 8 hearing could set a trial date.

Navy Cmdr. Michael Vannak Khem Misiewicz passed confidential information on ship routes to Francis' Singapore-based company, Glenn Defense Marine Asia Ltd., or GDMA, according to court documents.

Misiewicz and Francis moved Navy vessels like chess pieces, diverting aircraft carriers, destroyers and other ships to Asian ports with lax oversight where Francis could inflate costs, according to the criminal complaint. The firm overcharged the Navy millions for fuel, food and other services it provided and invented tariffs by using phony port authorities, the prosecution alleges.

"It's pretty big when you have one person who can dictate where ships are going to go being influenced by a contractor," said retired Rear Adm. Terry McKnight, who has no direct knowledge of the investigation. "A lot of people are saying, 'How could this happen?'"

So far, authorities have arrested Misiewicz; Francis; his company's general manager of global government contracts, Alex Wisidagama;, and a senior Navy investigator, John Beliveau II. Beliveau is accused of keeping Francis abreast of the probe and advising him on how to respond in exchange for such things as luxury trips and prostitution services.

Attorneys for the accused, who have all pleaded not guilty, declined to comment. The defendants face up to five years in prison if convicted of conspiracy to commit bribery.

Senior Navy officials said they believed that more people would likely be implicated in the scheme but it was too early to tell how many or how high this would go in the ranks. Other unnamed Navy personnel are mentioned in court documents as getting gifts from Francis.

'We got him'

Francis is legendary in military circles in that part of the world, said McKnight. Known for his extravagance, the Malaysian businessman has a 70,000-foot bungalow in an upscale Singapore neighborhood that draws spectators to its lavish, outdoor Christmas decorations.

"He's a larger-than-life figure," McKnight said. "You talk to any captain on any ship that has sailed in the Pacific, and they will know exactly who he is."

Navy spokesman Rear Adm. John Kirby said Navy Criminal Investigative Service agents initiated their probe in 2010, but he declined to comment further, citing the ongoing investigation.

That year, Misiewicz caught the world's attention when he made an emotional return as a U.S. Navy commander to his native Cambodia, where he was rescued as a child from the violence of the Khmer Rouge and adopted by an American woman. His homecoming was widely covered by international media.

Meanwhile, Francis was recruiting him for his scheme, according to court documents.

Misiewicz's family went to a "Lion King" production in Tokyo with a GDMA employee in December 2010, and Misiewicz was offered prostitution services. Within months, he was providing Francis with schedules for the USS George Washington carrier strike group and other ships, according to the criminal complaint.

Shortly after that, Wisidagama wrote to Francis, "We got him!!" according to court documents.

GDMA cheated the Navy out of $10 million in just one year in Thailand alone, U.S. Attorney Laura Duffy said.

In December 2011, the two exchanged emails about the schedule of the USS Blue Ridge, investigators say. According to court documents, Francis wrote Misiewicz, "Bro, Slide a Bali visit in after Jakarta, and Dili Timor after Bali."

The complaint alleges Misiewicz followed through on the demands. In October 2012, the USS George Washington was scheduled to visit Singapore and instead was redirected by the Navy to Port Klang, Malaysia, one of Francis' preferred ports, where his company submitted fake contractor bids.

After Francis offered Misiewicz five tickets to a Lady Gaga concert in Thailand in 2012, Francis wrote, "Don't chicken out bro we need u with us on the front lines," according to court documents.

The federal government has suspended its contracts with Francis.

The Associated Press

 

[Neptune]

3 senior Navy officials now face charges of swapping secrets for prostitutes, cash, travel

BY JULIE WATSON, THE ASSOCIATED PRESS NOVEMBER 7, 2013

SAN DIEGO - The number of senior U.S. Navy officials accused of swapping secrets for bribes that included cash, prostitutes and high-end travel has grown to three.

Federal authorities on Wednesday arrested Cmdr. Jose Luis Sanchez in Tampa, Fla. and will seek to have him sent to San Diego to face allegations that he accepted $100,000 in cash, visits from prostitutes and other bribes from a Malaysian contractor.

Prosecutors allege that in exchange for the bribes, the 41-year-old Sanchez passed on classified U.S. Navy information to Leonard Glenn Francis, known in Navy circles as "Fat Leonard," the CEO of Singapore-based Glenn Defence Marine Asia Ltd., or GDMA.

Sanchez's attorney could not immediately be reached for comment.

Francis's company has serviced Navy ships in the Pacific for 25 years and is accused of overbilling the Pentagon by millions. His contracts have now been suspended.

The arrest marks the latest development in the case rocking the Navy. The accusations signal serious national security breaches and corruption and has set off high-level meetings at the Pentagon with the threat that more people, including those of higher ranks, could be swept up as the investigation continues. A hearing Nov. 8 could set a trial date.

"According to the allegations in this case, a number of officials were willing to sacrifice their integrity and millions of taxpayer dollars for personal gratification," U.S. Attorney Laura Duffy said after Wednesday's arrest.

The two other senior officials arrested in recent weeks in the case are Navy Cmdr. Michael Vannak Khem Misiewicz — who like Sanchez, is accused of giving Francis' company confidential information about Navy ship routes — and a senior Navy investigator, John Beliveau II.

Prosecutors allege in a criminal complaint that Beliveau, 44, kept Francis abreast of the bribery probe and advised him on how to respond in exchange for such things as prostitution services.

GDMA overcharged the Navy millions of dollars for fuel, food and other services it provided, and invented tariffs by using phoney port authorities, prosecutors say.

Misiewicz and Francis moved Navy vessels like chess pieces, diverting aircraft carriers, destroyers and other ships to Asian ports with lax oversight where Francis could inflate costs, the criminal complaint alleges.

Francis, 49, was arrested in San Diego in September. A few weeks later, authorities arrested his company's general manager of global government contracts, Alex Wisidagama, 40.

Misiewicz, Beliveau, Francis and Wisidagama have pleaded not guilty. Their defence attorneys declined to comment.

Court records allege that Sanchez regularly emailed Francis internal Navy discussions about GDMA, including legal opinions, and made recommendations in GDMA's favour about port visits and Navy personnel assignments.

The conspiracy began in January 2009, when Sanchez was the deputy logistics officer for the commander of the Navy's 7th Fleet in Yokosuka, Japan, according to charging documents.

Francis hired prostitutes for Sanchez and friends on multiple occasions, according to the investigation.

In one 2009 email exchange, Sanchez and Francis discussed a trip Sanchez planned to take to Kuala Lumpur and Singapore with Navy friends he called his "Wolf Pack," according to the complaint. They discussed the number of rooms the "Wolf Pack" needed, and Sanchez asked Francis for pictures of prostitutes for "motivation." Francis replied that he would take care of it.

A few days later, Sanchez sent a Facebook message to Francis saying, "Yummy ... daddy like," according to charging documents.

Shortly after that, Francis sent an email asking Sanchez to help "swing" business his way regarding a U.S. Navy ship's need to refuel in Thailand.

As a result, the USS Mustin paid more than $1 million for fuel from GDMA at the Thai port — more than twice what the fuel should have cost, prosecutors allege.

Acting Assistant Attorney General Raman said the GDMA executives "boasted" about their unlawful dealings, which could bring five years in prison if they're convicted of conspiracy to commit bribery.

"Day by day, this massive Navy fraud and bribery investigation continues to widen, and as the charges announced today show, we will follow the evidence wherever it takes us," he said.

 

[Neptune]

US Navy commander 'diverted aircraft carriers and moved ships like chess pieces to Asian ports in return for prostitutes and Lady Gaga tickets'

• Also charged were Leonard Glenn Francis, the CEO of defense contractor Glenn Defense Marine Asia Ltd
• And John Bertrand Beliveau II, a special agent with the Naval Criminal Investigative Service - NCIS
• The scandal is reverberating across the U.S. Navy and more arrests possible

By TED THORNHILL PUBLISHED: 13:47 GMT, 4 November 2013 | UPDATED: 13:57 GMT, 4 November 2013

Arrested: Michael Vannak Khem Misiewicz has been charged with accepting paid travel, the services of prostitutes and Lady Gaga concert tickets in a devastating bribery case for the US Navy

A U.S. Navy commander has been accused of moving ships 'like chess pieces' to ports in Asia to financially benefit a defense contractor, in return for prostitutes and Lady Gaga tickets, according to naval court documents.Michael Vannak Khem Misiewicz also allegedly passed confidential information on ship routes to the firm, Singapore-based company, Glenn Defense Marine Asia Ltd, or GDMA.The accusations unfolding in a federal court case signal serious national security breaches and corruption, with the threat that more people, including those of higher ranks, could be swept up as the investigation continues.

A hearing on November 8 could set a trial date.Glenn Defense Marine Asia Ltd is run by the gregarious Malaysian businessman nicknamed ‘Fat Leonard’, who is well known by U.S. Navy commanders in the Pacific.

But prosecutors in court papers say Leonard Francis worked his connections to obtain military secrets by arranging prostitutes, Lady Gaga tickets and other bribes for a U.S. commander, in a scandal reverberating across the Navy.Misiewicz and Francis moved Navy vessels like chess pieces, diverting aircraft carriers, destroyers and other ships to Asian ports with lax oversight where Francis could inflate costs, according to the criminal complaint.The firm overcharged the Navy millions for fuel, food and other services it provided, and invented tariffs by using phony port authorities, the prosecution alleges.

At the time, Misiewicz was deputy operations officer for the U.S. commander of the Seventh Fleet, which oversees operations over some 48 million square miles extending from Japan to Diego Garcia in the Indian Ocean and from Vladivostok, Russia, to Australia. Prior to his assignment at the Seventh Fleet, Misiewicz had been commanding officer of the USS Mustin, a forward-deployed guided-missile destroyer.

‘It's pretty big when you have one person who can dictate where ships are going to go and being influenced by a contractor,’ said retired Rear Admiral Terry McKnight, who has no direct knowledge of the investigation. ‘A lot of people are saying, “How could this happen?’'So far, authorities have arrested Misiewicz; Francis; his company's general manager of global government contracts, Alex Wisidagama; and a senior Navy investigator, John Beliveau II. Beliveau is accused of keeping Francis updated on the investigation and advising him on how to respond in exchange for luxury trips, prostitution services, and more.
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Public Face: In this photo taken Dec. 3, 2010, U.S. navy officer Michael "Vannak Khem" Misiewicz smiles as he delivers his welcome speech on the deck of the U.S. Navy destroyer USS Mustin at Cambodian coastal international see port of Sihanoukville

All have pleaded not guilty. The defendants face up to five years in prison if convicted of conspiracy to commit bribery. Defense attorneys declined to comment.Senior Navy officials said they believe that more people would likely be implicated in the scheme, but it's too early to tell how many or how high this will go in the naval ranks. Other unnamed Navy personnel are mentioned in court documents as getting gifts from Francis. Francis is legendary in military circles in that part of the world, said McKnight, who does not know him personally. He is known for extravagance. His bungalow in an upscale Singapore neighborhood drew spectators since 2007 to its lavish, outdoor Christmas decorations, which The Straits Times newspaper described as rivaling the island city-state's main shopping street.‘He's a larger-than-life figure,’ McKnight said. ‘You talk to any captain on any ship that has sailed in the Pacific and they will know exactly who he is.’
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CBS News reported that maintenance for one ship, the aircraft carrier Stennis, cost the Navy $2.7 million, which is about double the average price charged by other ports.

Navy spokesman, Rear Admiral John Kirby said Navy Criminal Investigative Service agents initiated their probe in 2010, but declined to comment further, citing the ongoing investigation.That same year, Misiewicz caught the world's attention when he made an emotional return as a U.S. Naval commander to his native Cambodia, where he had been rescued as a child from the violence of the Khmer Rouge and adopted by an American woman. His homecoming was widely covered by international media.

Lured to his arrest: Also taken into custody and charged in criminal complaints unsealed in U.S. district court in San Diego on Tuesday were Leonard Glenn Francis

Meanwhile, Francis was recruiting him for his scheme, according to court documents.Francis' company bilked the Navy out of $10 million in just one year in Thailand alone, U.S. Attorney Laura Duffy said.The federal government has suspended its contracts with Francis. Francis was arrested in San Diegoin September, while Misiewicz was taken into custody in Colorado and Beliveau in Virginia - all in September.

Francis was allegedly arrested in the United States after being duped into coming to San Diego by Navy officials who arrested him in a sting-operation. According to a 2010 U.S. Navy release, Misiewicz grew up near Phnom Penh during the Vietnam war and was adopted by an American woman shortly before the Khmer Rouge came to power in 1975. He escaped the notorious 'Killing Fields' and was heralded publicly for his successful rise to become the skipper of the USS Mustin - and made an emotional returen to Cambodia in 2010, which was given huge media attention.

The Navy said in the release that a visit by the USS Mustin to Sihanoukville, Cambodia, in December 2010 marked his first return to that country since his adoption 37 years earlier. Last month a senior Navy spokesman deflected inquires into the status of the still-unfolding investigation. 'We don't comment on ongoing investigations, except to say that we are committed to supporting the investigation,” the spokesman told Fox News. “We hold our leaders to -- and expect them to uphold -- high standards of conduct and professionalism.'

Reunion: Navy Cmdr. Michael V. Misiewicz, then commanding officer of the guided-missile destroyer USS Mustin, is greeted by a member of his family as the Mustin arrives in Sihanoukville, Cambodia on Dec. 3, 2010


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