Navy admiral, 8 others accused of corruption in ‘Fat Leonard’ bribery case

A member of the crew will take photos on board of the USS Blue Ridge, the flagship of the U.S. Navy’s Seventh Fleet, in Hong Kong waters January 28, 2008


The Ministry of Justice unsealed a new indictment Tuesday charging a Marine admiral and eight others with corruption and other crimes in the “Fat Leonard” bribery case.

The soldiers 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 pled guilty to defrauding the Navy of tens of millions of dollars.

The full list of kickbacks listed in the indictment allegedly given to the defendants over a period of eight years included 5,000 watches, $2,000 boxes of Cohiba cigars, the $2,000 bottles of cognac and $600 per night hotel rooms.

The Navy members are responsible for Rear Adm. Bruce Loveless, a senior Marine intelligence officer based at the Pentagon. A US defence official told Fox News that Loveless had his security clearance suspended over a year ago, while awaiting a formal complaint.

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This undated image released by the U.S. Navy and provided by The San Diego Union-Tribune Behind Adm. Bruce Loveless. An indictment unsealed Tuesday, 14 March 2017, with the federal court in San Diego alleging that retired Adm. Bruce Loveless and the other officers accepted the services of prostitutes, lavish meals and fancy trips of Leonard Francis, in exchange for helping his company, Glenn Defence Marine Asia. (U. S. Navy/Courtesy The San Diego Union-Tribune via AP)

(Us Navy)

In addition to Loveless, others charged in the indictment are three retired Navy captains: David Lausman, Donald and David Hornbeck Newland; an active-duty Marine 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.

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Francis often sponsored wild sex parties for the officers on the flagship of the Navy’s 7th Fleet, the USS Blue Ridge, in addition to other warships, according to charging documents.

During a visit to the port in Manila in February 2007, Francis allegedly hosted a sex party for officers at the MacArthur Suite of the Shangri-La Hotel, where the “historical memorabilia related to General Douglas MacArthur and was used by the participants in the sexual acts,” according to the indictment.

“The defendants in this indictment were charged with the honor and the responsibility of the management of the operations of the U.S. Navy’s Seventh Fleet, which is tasked with the protection of our nation by guarding a portion of the responsibility which spanned from Russia to Southeast Asia and the Indian Ocean,” Acting Assistant Attorney General Blank said in a statement. “With this honor and awesome responsibility was a duty to make decisions based on the best interests of the Navy, and 40,000 Sailors and Marines under their care that their life is in danger every day to keep us safe and free. Unfortunately, however, these suspects are believed to have sold their honor, and responsibility in exchange for personal enrichment.”


The latest indictment brings the total number of people who are accused of crimes in connection with the investigation of 27. Prosecutors told The Washington Post, which first reported the indictment, more than 200 people have come under the microscope.

Of the previously charged 20 current or former US Navy officers and five GDMA executives, according to the u.s. department of justice. A total of 13 so far have pleaded guilty, while a number of other cases are pending.

Fox News’ Lucas Tomlinson and Matt Dean contributed to this report.

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