Navy Secretary: Bribery Scandal Probe Widens

Mabus would not say how much money is involved in the widening probe

By R. Stickney and Associated Press reporters
|  Friday, Dec 20, 2013  |  Updated 12:08 PM PDT
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Criminal Probe Alleges Secrets Swapped for Prostitutes, Travel

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The secretary of the Navy warned of more disclosures in a widespread Navy bribery scandal that has implicated several senior naval officers and a Singapore businessman known within military circles as "Fat Leonard."

Navy Secretary Ray Mabus says the Navy has not seen the end of the multimillion dollar bribery and contracting scandal that has implicated several companies and naval personnel.

Mabus would not say how much money is involved in the widening probe. But he says the Navy will continue to aggressively go after any naval officers or contractors who may be involved.

Six naval officers have been implicated including three who have been arrested.

On Tuesday, John Beliveau II, an agent with the Naval Criminal Investigative Service, pleaded guilty Tuesday to bribery charges.

The case involves allegations that officials accepted pricey vacations and prostitute services for providing information and advice to Leonard Francis, an Asian defense contractor who then overbilled the Navy for port services.

Prosecutors allege that the man known as "Fat Leonard" and his company glenn Defense Marine Asia Ltd., or GDMA, overbilled the Navy by at least $20 million.

Court documents show through text messaging contacts within the U.S. Navy, Francis successfully redirected nuclear-powered destroyers and aircraft carriers along with their support ships to ports his company controlled.

Federal prosecutors in San Diego said Beliveau exchanged confidential information on internal investigations for luxury travel and envelopes filled with cash.

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