A fourth U.S. Navy officer has been implicated in a far-reaching bribery scandal involving a defense contractor's CEO, an NCIS agent and multiple senior naval officials.
Petty Officer First Class Dan Layug, 27, was arrested Wednesday in San Diego.
According to a newly unsealed complaint, he was charged in federal court Thursday with accepting cash, luxury travel and consumer electronics from Singapore-based defense contractor Glenn Defense Marine Asia (GDMA). A judge ordered Layug be held on a $100,000 bond and that he be subject to GPS monitoring.
The complaint said Layug received bribes in exchange for sending classified ship schedules and other sensitive Navy information to GDMA’s vice president of global operations.
That in turn helped GDMA and its CEO Leonard Glenn Francis – also known as “Fat Leonard” – overbill the Navy by at least $20 million, prosecutors say.
While Layug worked as a logistic specialist at a U.S. facility in Yokosuka, Japan in 2012, the vice president allegedly told a GDMA accountant that “at the end of each month, we will be providing an allowance to Mr. Dan Layug. Total of US $1,000. You may pay him the equivalent in Yen. He will come by the office at the end of each month to see you.”
In addition to that monthly allowance, the complaint said Layug requested a “bucket list” of electronics from GDMA, including a high-end camera, iPhone 5, iPad 3, Samsung S4 cell phone and an iPad Mini. Prosecutors said he also received rooms at luxury hotels throughout Asia for him and his friends.
Layug then tried to hide his illicit relationship with GDMA, according to the complaint. He described the classified ship schedules with the code word “golf schedules” and opened a bank account under the name of his infant daughter, into which he deposited parts of his allowance.
If convicted on the conspiracy to commit bribery charge, Layug faces a maximum of five years in prison and a $250,000 fine or twice the gross gain from the offense – whichever is greater.
So far, five other people have been implicated in the scandal, which Navy Secretary Ray Mabus said will continue to grow.
Francis, 49, was charged with conspiring to bribe Navy officials. Last month, Francis’ cousin and company manager Alex Wisidagama, 40, pleaded guilty to his part in the scheme.
Two senior Navy officials – Commander Michael Vannak Khem Misiewicz, 46, and Commander Jose Luis Sanchez, 41 – have both pleaded not guilty to bribery charges against them.
NCIS Supervisory Special Agent John Bertrand Beliveau II, 44, pleaded guilty in last December to accepting bribes in exchange for tipping Francis off to the status of the government’s investigation into GDMA.
The investigation, which started in 2009, will continue under the NCIS, the Defense Criminal Investigative Service and the Defense Contract Audit Agency.