Capt. David Lausman speaks on the deck of U.S. aircraft carrier USS George Washington in 2012. (Bobby Yip/Reuters)

By Craig Whitlock
March 14, 2017
The Washington Post

The Justice Department unsealed a fresh indictment Tuesday charging eight Navy officials — including an admiral — with corruption and other crimes in the “Fat Leonard” bribery case, escalating an epic scandal that has dogged the Navy for four years.

Among those charged were Rear Adm. Bruce Loveless, a senior Navy intelligence officer who recently retired from a key job at the Pentagon, as well as four retired Navy captains and a retired Marine colonel. The charges cover a period of eight years, from 2006 through 2014.

The Navy personnel are accused of taking bribes in the form of lavish gifts, prostitutes and luxury hotel stays courtesy of Leonard Glenn “Fat Leonard” Francis, a Singapore-based defense contractor who has pleaded guilty to defrauding the Navy of tens of millions of dollars.

The indictment lists page after page of bribes allegedly provided to the defendants including $25,000 watches, $2,000 boxes of Cohiba cigars, $2,000 bottles of cognac and $600-per-night hotel rooms.

According to the charging documents, Francis also frequently sponsored wild sex parties for many officers assigned to the USS Blue Ridge, the flagship of the Navy’s 7th Fleet, and other warships.

During a port visit by the Blue Ridge to Manila in May 2008, for example, five of the Navy officers attended a “raging multi-day party, with a rotating carousel of prostitutes,” at the Shangri-La Hotel, according to the indictment. The group allegedly drank the hotel’s entire supply of Dom Pérignon champagne and rang up expenses exceeding $50,000, which Francis covered in full.

On another port visit by the Blue Ridge to Manila in February 2007, Francis allegedly hosted a sex party for officers in the MacArthur Suite of the Manila hotel. During the party, “historical memorabilia related to General Douglas MacArthur were used by the participants in sexual acts,” according to the indictment.

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