Two retired Navy officials plead guilty in 'Fat Leonard' corruption scandal - the biggest in US military history - after 'accepting bribes of lavish hotel rooms and high-roller prostitute parties from Malaysian contractor'
Two retired Navy officials pleaded guilty on Tuesday in the sweeping 'Fat Leonard' bribery case that has caused the downfall of dozens of high-ranking officials in one of the worst corruption scandals in the history of the maritime service.
Retired Capt. David Williams Haas, 50, and retired Chief Petty Officer Brooks Alonzo Parks, 46, entered pleas in San Diego to federal charges of conspiracy to commit bribery, the San Diego Union-Tribune first reported.
They are were among 33 people charged in connection to the years-long corruption scheme involving a Malaysian defense contractor, Leonard Glenn Francis, nicknamed 'Fat Leonard' for his 350-pound frame.
Retired Capt. David Williams Haas, 50 (left), has pleaded guilty to accepting more than $90,000 in bribes from Malaysian defense contractor,Leonard Glenn Francis, nicknamed 'Fat Leonard' for his 350-pound frame (right)
Haas was a captain on the USS Blue Ridge, a 7th Fleet command ship (pictured)
Prosecutors say the Malaysian kingpin bought information from a long string of Navy officials, including a rear admiral, that allowed his company to win lucrative contracts and overbill the US Navy by $35million for services it provided to ships at Asian ports since 2009.
Francis asked Navy captains to re-route ships to ports owned by his company or to small ports where they could impose fake port fees on the Navy.
In 2017, US Navy Rear Admiral Robert Gilbeau was jailed for 18 months after admitting that he lied to investigators when questioned over his relationship with Francis
In 2011, the company which has worked with the US Navy for 25 years, charged $2.7million for servicing the USS Mustin during a port visit to Thailand, and more than $1.5million were fraudulent charges.
So far, 19 current or former Navy officials have pleaded guilty.
In 2017, US Navy Rear Admiral Robert Gilbeau was jailed for 18 months after admitting in 2016 that he lied to investigators when questioned over his relationship with Francis going back decades.
Gilbeau admitted lying to investigators by saying he had never accepted gifts from the man which prosecutors claim included prostitutes and parties.
Haas was a captain on the USS Blue Ridge, a 7th Fleet command ship, and acknowledged receiving $91,000 worth of bribes that included luxury hotel stays, parties in Indonesia and Japan that included the services of prostitutes, top-shelf liquor and meals at high-end restaurants.
According to his August 2018 indictment, on November 5, 2011, while Haas was director of Maritime Operations for the Seventh Fleet staff aboard the USS Blue Ridge, Francis took him and others to dinner at the Ritz Carlton in Tokyo, and provided them with prostitutes at a cost of more than $20,000.
For four days in May 2012, Francis paid for rooms at the Shangri-La in Jakarta, Indonesia, plus dinner, entertainment at a night club, alcohol and prostitutes for Haas and other Navy officials.
Francis pleaded guilty in 2015 but has yet to be sentenced due to his failing health
On June 29-30, 2012, in Tokyo, Francis paid for a two-day party for Haas and company, including transportation, dinner at Nobu Restaurant and entertainment at several hostess clubs where the services of prostitutes were provided, at a cost of more than $75,000.
Parks was a 7th Fleet logistics officer who acknowledged leaking information to help Francis win bids for contracts, including sensitive information about competitor pricing, and Navy ship personnel movement.
Parks acknowledged receiving about $25,000 worth of bribes, including a $3,000-a-night room at a Hilton in Singapore, airline tickets and a case of 'White Hennessy' cognac, according to his plea agreement.
Francis was arrested in a sting operation in September 2013 and pleaded guilty to bribery and defrauding the US Navy of $35million in January 2015, but he has yet to be sentenced due to his failing health.
According to past news reports, Francis has been allowed to stay at the home of one of his doctors under 24-hour surveillance.
Francis, who is in his early 50s, is said to be battling kidney cancer. He faces up to 25 years in prison.
Two retired Navy officials plead guilty in 'Fat Leonard' corruption scandal - the biggest in US military history - after 'accepting bribes of lavish hotel rooms and high-roller prostitute parties from Malaysian contractor'
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June 11, 2020
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