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Largest Bribery Scam In Navy History Leads To Another Arrest

Courtesy: US Defense Department
April 18, 2014

In what many are calling the largest bribery scam in Navy history, a fourth U.S. Navy official has been charged.  Petty Officer First Class Dan Layug was charged with conspiracy to commit bribery.  He is based in Tokyo, but was arrested in San Diego on Wednesday and appeared before a federal judge later in the day.  Layug is accused of taking over $1,000 a month plus many other benefits from Glenn Defense Marine Asia, the group at the center of the bribery scandal.  In exchange for those goods, Layug would supply Glenn Defense Marine Asia with the schedules of Navy ships.  The company’s CEO has also been charged in the scandal, as well as three other Navy officials.  Both a vice-admiral and a rear admiral have also been placed on leave in connection with the scandal.


The fourth U.S. Navy official charged in the widening corruption investigation of a Singapore-based defense contractor made his first court appearance on Thursday, accused of accepting gifts of cash, electronics and luxury hotel stays.

Petty Officer First Class Dan Layug, 27, is charged with conspiracy to commit bribery, according to a complaint unsealed on Thursday. Tokyo-based Layug was arrested on Wednesday in San Diego, where he later appeared before a federal judge.

He is accused of accepting payments of $1,000 a month, plus expensive electronic gadgets and luxury hotel stays, in exchange for information he provided on Navy ships’ schedules to Glenn Defense Marine Asia, the company at the center of the scandal.

The company’s CEO, native Malaysian businessman Leonard Glenn Francis, is charged with plying Navy officials with cash, concert tickets, prostitutes and other gifts to win business.

U.S. Navy Commander Michael Misiewicz and Navy criminal investigations special agent John Beliveau were arrested on September 16, 2013, at the same time as Francis, and charged with conspiracy to commit bribery.

Commander Jose Luis Sanchez was arrested and charged in November with accepting prostitutes, luxury travel and $100,000 in cash from Francis. Glenn Defense executive Alex Wisidagama, of Singapore, was also charged in the scandal. He and Beliveau have since pleaded guilty.

Two other high-level Navy officers – a vice admiral and a rear admiral – have been placed on leave, and a captain was removed from the command of an assault ship in connection with the investigation, but they have not been charged.

The complaints against Francis allege that he directed a scheme to defraud the Navy by bribing military officials to steer ships into harbors where his company would provide ship husbandry – a range of services from cleaning, restocking and refueling to shepherding Navy personnel during their port stay.

Francis, the complaints allege, would then inflate the charges for those services and demand kickbacks from his company’s subcontractors.

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