US Navy officers who divulged confidential information are acquitted of felonies.

Despite pleading guilty to sharing US military secrets with 'Fat Leonard,' five Navy officers had their convictions dismissed in the largest Navy scandal.

US Navy officers who divulged confidential information are acquitted of felonies.
US Navy officers who divulged confidential information are acquitted of felonies.

Leonard Glenn Francis, commonly known as "Fat Leonard," is a 6 feet, 3 inch tall, 350 pound ex-Malaysian defense contractor who bribed hundreds of Navy officers for confidential information for over two decades. He defrauded the US government and American taxpayers out of at least $35 million until he was caught in a sting operation in 2013. Following his arrest, nearly 1,000 Navy officers were scrutinized, including 91 admirals. Federal prosecutors charged 34 defendants with criminal offenses.

One of the largest scandals in U.S. Navy history involved Francis offering bribes to Navy officers in exchange for classified information, which included lavish meals, expensive gifts, and orgies.

Fat Leonard
An undated photo of Leonard Glenn Francis, owner of the Singapore-based maritime services firm Glenn Defense Marine Asia. (NCIS-DCIS case files)

The government requested the dismissal of the felony convictions for five military officers who admitted to accepting bribes from Francis due to "prosecutorial errors."

Despite his guilty plea to bribery and receiving $105,000 in meals, services from prostitutes, and hotel expenses, Lt. Cmdr. Stephen Shedd's entire case was thrown out. Meanwhile, Marine Corps Col. Enrico DeGuzman and retired U.S. Navy officers Donald Hornbeck, Robert Gorsuch, and Jose Luis Sanchez had their felony convictions dismissed and pleaded guilty to misdemeanor charges for disclosing classified information on Tuesday.

The dismissal of military officers on Tuesday did not imply they were innocent of the charges; rather, the convictions were dropped due to withheld information from the defense.

The Fat Leonard case is facing a series of setbacks in its prosecution.

Craig Whitlock, an investigative reporter for The Washington Post, has spent the past ten years researching the Fat Leonard scandal and has now released a new book titled "Fat Leonard: How One Man Manipulated, Defrauded and Charmed the US Navy."

Fat Leonard book cover
Author and Washington Post investigative reporter Craig Whitlock's new book on "Fat Leonard."

Whitlock stated that Leonard knew he had given them a taste of the high life by taking them out to fancy dinners. He organized sex parties with prostitutes in Asia, and by the time they accepted all the extravagant or illicit gifts, they were really enthralled to him.

Fat Leonard at party
Leonard Francis, left, hosted a $60,000 "Christmas Cheer" dinner party in Hong Kong in 2004 for officers from the USS Abraham Lincoln carrier strike group, including then-Rear Admiral Douglas Crowder, the strike group commander. Francis also hired Santa Ninas, or Santa Girls, to mingle with his guests. (NCIS-DCIS case files)

Glenn Defense Marine Asia Ltd., a Singapore-based maritime services supply company, was found to have grossly overcharged on U.S. Navy contracts, with the officers turning a blind eye.

Whitlock stated that they didn't perceive Leonard as a threat because he was a 350-pound Malaysian man who appeared patriotic, wearing U.S. flags on his necktie and had Lee Greenwood's God Bless the U.S.A. on his cell phone ringtone. As a result, they saw him as someone who was loyal to the U.S. Navy and fell for the deception hook, line, and sinker.

Fat Leonard
An undated photo of Leonard Glenn Francis. (Glenn Defense Marine Asia)

At the parties he threw, Francis would capture photos of the officers smiling for the camera. He used these images as proof to obtain what he desired from them.

"Leonard used the threat of using the information he had gathered to compel officers who were his informants or moles to do what he wanted, according to Whitlock."

Bribery cases against US Navy officers dismissed due to prosecutorial errors

In 2013, Francis was enticed to San Diego and was ensnared in a sting operation. He admitted guilt in 2015 for offering over $500,000 in cash bribes to U.S. military officials and was sentenced to up to 25 years in prison.

Despite being arrested, Francis continued to bribe his way out of the situation. After being hospitalized and treated for cancer, he convinced the judge to allow him house arrest for a more comfortable recovery. In 2022, he escaped house arrest by cutting off his GBS tracker and calling an Uber. He eventually made his way to Venezuela, where he was captured and sent back to the U.S. in a prisoner swap in December 2023.

Until Francis is sentenced, prosecutors are holding off on bringing charges related to his escape.

Most admirals and senior officers received a slap on the wrist or nothing happened to them, according to Whitlock.

Whitlock stated that most of Leonard's informants and moles knew they were doing something wrong, but they believed they would never be caught.

by Liz Friden,Jennifer Griffin

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