The paper reported that Leonard Glenn Francis, better known as “Fat Leonard”, a defence contractor for the Navy, had “systematically infiltrated” the 7th Fleet flagship, the USS Blue Ridge, offering gifts and throwing sex parties at five-star hotels in exchange for classified information on ship movements.
The information allowed him to manoeuvre vessels to ports controlled by his firm, enabling him to easily overcharge the Navy for food, fuel, fresh water, ground transportation and other services which he provided through contracts held by his firm, Glenn Defense.
The Post reported that Francis did this on at least 45 occasions between 2006 and 2013, citing court documents which showed the staggering dimensions of the scandal.
Luxury watches, liquor, cash, vacations, gourmet meals and designer handbags formed only the surface layer of the freebies handed by Francis to Navy personnel and, at times, even their spouses.
The US daily gave the example of Carol Lausman, the wife of Captain David Lausman, who accepted a US$8,400 Versace purse while on a visit to Hong Kong in 2011.
During an earlier visit by the Blue Ridge to Thailand, meanwhile, court records show that Francis had asked his staff to pay for the Lausmans’ stay at a beach resort, along with miscellaneous other extras.
“Fast track and VIP service. Best room at Sheraton. Arrange market trip and tour for shopping in Bangkok. She wants to make silk pants. Cheap price. We pay ha ha,” Francis was quoted as saying in his email.
According to the report, Carol has not been charged with a crime. Her husband, David, has pleaded not guilty to charges of bribery, conspiracy and obstruction of justice. However, Carol is only one of the many individuals whom Francis saw as amenable to exploitation.
Officers like Captain David Newland, the 7th Fleet chief of staff, even went to the extent of warning Francis when an ethics alert was sent out in 2006 on defence contractors “who might try to bribe you”.
An indictment filed last year in the San Diego Federal Court shows that Newland “immediately” leaked the message to Francis, allowing him to cover his tracks.
Newland was richly rewarded: the next day, he and other officers were treated to a US$20,000 meal at a luxurious French restaurant in Hong Kong, following which they spent the night at the Shangri-La Hotel.
Newland has pleaded not guilty to charges of bribery and conspiracy, while his attorney says allegations against him are unproven.
The following month, a group of at least seven officers from the Blue Ridge had cocktails on the helipad of the 73-story Swissôtel Stamford Hotel, the report said citing court documents.
The meal that followed was held in a Michelin-starred restaurant and featured foie gras terrine, oxtail soup and duck-leg confit, while dessert was dark Manjari chocolate gelee, with cacao nib foam, poached rhubarb and passion fruit sorbet.
Hennessy Paradis Extra cognac, priced at US$2,000 a bottle, was handed around, while the officers smoked Cuban cigars worth US$2,000 a box.
Francis was arrested in 2013 and has pleaded guilty to bribery and defrauding the military of some US$35 million.
He has been in jail in San Diego since his arrest, where he is awaiting his sentence.
More than 60 admirals have been investigated by the US Department of Justice and the Navy, with two charged in federal court and six others censured or disciplined by the Navy.
“The criminal activity of Leonard Francis has changed how we conduct our… contracting services worldwide,” Navy spokesman Commander Mike Kafka said in an email to The Washington Post.