Three new indictments in Fat Leonard scandal

A retired U.S. Navy captain and two senior enlisted men who were charged with taking bribes from a Singapore-based defense contractor now face up to 20 years in prison if convicted.

Captain David Williams Haas (retired), 50, allegedly took bribes from Leonard Glenn Francis that included parties at luxury hotels and the services of prostitutes, according to a federal indictment unsealed Thursday.

Francis is the owner and CEO of Glenn Defense Marine Asia. The company provided tugboats, security, fuel, food, water and trash removal to U.S. Navy ships during port visits across Asia.

Francis, also known as Fat Leonard, pleaded guilty in 2015 to directing a decade-long conspiracy involving scores of U.S. Navy officials, tens of millions of dollars in fraud, and millions of dollars in bribes.

Separate indictments were unsealed Thursday against Master Chief Petty Officer Ricarte Icmat David (retired) and Chief Petty Officer Brooks Alonzo Parks (retired).

David, 61, lives in the Philippines and Parks, 46, lives in Naples, Italy.

All three defendants were charged with conspiracy to commit honest services fraud. That offense is punishable by up to 20 years in prison.

Captain Haas also faces counts for bribery, punishable by up to 15 years in prison, and bribery conspiracy, punishable by up to 5 years in prison.

In exchange for bribes, the three allegedly “used their influence within the Navy’s Seventh Fleet” to approve inflated invoices from Glenn Defense Marine Asia and send ships to Glenn Defense-controlled ports.

They’re also charged with giving Glenn Defense classified and proprietary U.S. Navy information and helping Francis recruit other U.S. Navy officers to join the bribes-for-business conspiracy.

According to the indictments by a grand jury sitting in San Diego, Francis bribed the three with rooms, food, booze, and prostitutes at the Ritz Carlton in Tokyo and the Shangri-La in Jakarta.

Captain Haas and another defendant, Commander Michael Misiewicz, gave Francis classified long-range ship schedules and Seventh Fleet organization charts, the DOJ said.

“The schedules were stamped ‘SECRET’ and projected ship visits approximately 14 months in advance,” according to the indictment.

Included was information about the U.S. Navy ballistic missile defense operations in the Pacific, the DOJ said.

In May 2016, Commander Misiewicz, now 51, was sentenced to 78 months in prison after pleading guilty to conspiracy and bribery.

The new indictments alleged that in exchange for $40,000 in cash from Francis, Master Chief Petty Officer David approved inflated invoices from Glenn Defense.

“After the receipt of one cash installment, on November 16, 2005, David emailed Francis thanking him for the ‘wonderful Christmas present,'” the DOJ said.

Chief Petty Officer Parks allegedly gave Francis “competitor pricing and U.S. Navy ship and personnel movement information,” among other things.

At the start of the Fat Leonard investigation in November 2013, the Navy suspended Captain Haas from duty. He currently lives in Kailua, Hawaii.

Haas will voluntarily surrender to federal agents in San Diego on August 30, his lawyer told the Navy Times.

So far the DOJ has charged 32 defendants in the massive scandal. Twenty have pleaded guilty.

The FCPA Blog | August 20, 2018
http://www.fcpablog.com/blog/2018/8/20/three-new-indictments-in-fat-leonard-scandal.html