The Justice Department unsealed a new indictment Tuesday charging a Navy admiral and eight others with corruption and other crimes in the “Fat Leonard” bribery case.
The military personnel are accused of taking bribes from Singapore-based defense contractor Leonard Glenn Francis of Glenn Defense Marine Asia, which came in the form of lavish gifts, prostitutes and luxury hotel stays, according to the indictment. Francis has already pleaded guilty to defrauding the Navy of tens of millions of dollars.
The full list of bribes listed in the indictment allegedly given to the defendants over an eight-year period included watches worth $25,000, $2,000 boxes of Cohiba cigars, $2,000 bottles of cognac and $600-per-night hotel rooms.
Among the Navy members charged are Rear Adm. Bruce Loveless, a senior Navy intelligence officer based at the Pentagon. A U.S. defense official told Fox News that Loveless had his security clearance suspended over a year ago while awaiting formal charges.
In addition to Loveless, others charged in the indictment include three retired Navy captains: David Lausman, Donald Hornbeck and David Newland; an active-duty Navy captain, James Dolan; a retired Marine colonel, Enrico de Guzman; an active-duty Navy commander, Stephen Shedd; and Robert Gorsuch, a retired Navy chief warrant officer. Francis frequently sponsored wild sex parties for officials on the flagship of the Navy’s 7th Fleet, the USS Blue Ridge, in addition to other warships, according to the charging documents. While visiting port in Manila in February 2007, Francis allegedly hosted a sex party for officers at the MacArthur Suite of the Shangri-La Hotel, where “historical memorabilia related to General Douglas MacArthur were used by the participants in sexual acts,” according to the indictment.
“The defendants in this indictment were entrusted with the honor and responsibility of administering the operations of the U.S. Navy’s Seventh Fleet, which is tasked with protecting our nation by guarding an area of responsibility that spanned from Russia to Southeast Asia and the Indian Ocean,” Acting Assistant Attorney General Blanco said in a statement. “With this honor and awesome responsibility came a duty to make decisions based on the best interests of the Navy and the 40,000 Sailors and Marines under their care who put their lives at risk every day to keep us secure and free. Unfortunately, however, these defendants are alleged to have sold their honor and responsibility in exchange for personal enrichment.”
The latest indictment brings the total number of people charged with crimes related to the investigation to 27. Prosecutors told The Washington Post, which first reported the indictment, more than 200 people have come under scrutiny.
Of those previously charged, 20 are current or former U.S. Navy officials and five are GDMA executives, according to the DOJ. A total of 13 have so far pleaded guilty, while several other cases are pending.