The U.S. Navy’s 7th Fleet is having a really tough year. In case you haven’t been paying attention, the Navy is the full throes of the “Fat Leonard” scandal. The fallout began in November after 28 people were charged with crimes by the Justice Department.
The scheme is detailed in full by the Washington Post, but the gist of it is that the government believes those involved helped the Singapore-based firm Glenn Defense Marine Asia and its head, “Fat Leonard” Glenn Francis, milk the Navy out of some $35 million by overcharging for resupply – often by passing along classified information to GDMA.
All of this happened between 2006 and 2013. The conspirators weren’t dumb enough to use their Navy email accounts (one of them was dumb enough to transmit classified data via Facebook). Instead, they took out accounts on a consumer site. The indictment says Chief Warrant Officer Robert Gorsuch wrote to his conspirators,
“Just got turned on to this third-party email website that the military folks can’t block or track.”
There’s a whole timeline of events at the Naval Institute’s site.
So, how did “Leonard the Legend” do it?
5. Hookers. So many hookers.
Okay, so maybe in the annals of worldwide naval history, hookers aren’t that ridiculous. But Rear Admiral (that was his real rank, stop laughing) Robert J. Gilbeau once took in two at a time, paid for by Leonard. Leonard also used to hook Gilbeau up with a particularly famous one, known only as “The Handball Player.”
Commander Donald Hornbeck (aka “Bubbles” – not a joke) was taken with a lady he called his “new Mongolian friend.” Leonard even sent Cmdr. Stephen Shedd a catalog from VIP Tokyo Escorts, a high-end call girl service. Other brilliant call girl aliases include “BT” and “The Indonesian Detachment.”
Eventually, the indictment just gives up and refers to “other prostitutes.”
Francis allegedly also took Navy officers out to nightclubs accompanied by prostitutes and purchased dates for an unknown number of them, not just the core group of defendants – who called themselves “The Brotherhood,” “The Wolfpack,” and “The Cool Kids.”
4. Ca$h. Lots of it.
The former Rear Admiral “Tsunami Bob” Gilbeau (that was his nickname for himself) netted a cool $40,000 in cash for his part in the conspiracy. He pled guilty for lying to investigators, but was never charged with bribery or destroying evidence.
Other, non-cash windfalls for the officers included $37,000 hotel stays in the Philippines, $10,000 in Sydney, untold amounts for the Ritz-Carlton in Tokyo.
3. Sex acts with Gen. MacArthur’s corncob pipe
Navy investigators allege that one Lt. Cmdr. spent multiple days at the Manila Hotel, where Fat Leonard paid for the $3,300/night MacArthur Suite for a…
…raging, multi-day party, with a rotating carousel of prostitutes in attendance, during which the conspirators drank all of the Dom Perignon available.
That’s a quote from the actual indictment.
The 78-page indictment also says that, during this stay, “historical memorabilia related to General Douglas MacArthur were used by the participants in sex acts.” Looking at what’s available in the MacArthur Suite, it looks like the only usable “memorabilia” is the General’s iconic pipe.
In a thank-you email to Leonard, Shedd wrote that “it’s been a while since I’ve done 36 hours of straight drinking.” He had been emailing Leonard classified movement schedules for many Navy ships for months leading up to the weekend.
2. Food and booze
Early on in the conspiracy, three of the Navy officers charged allegedly ate at the Petrus Restaurant in Hong Kong. The bill was $20,435 — of course, Fat Leonard picked up the tab.
Those same three drank cocktails on a helipad in Singapore the very next month at the Jaan Restaurant, where they ate a lavish meal, topped off with Hennessy Private Reserve ($600 a bottle) and Paradis Extra champagne ($2,000 a bottle).
Other dinners were similarly expensive: $30,000 in Tokyo, $11,000 in Sydney, $18,000 in Hong Kong, $8,000 in Thailand, and $55,000 in Manila.
On at least one occasion, Fat Leonard’s champagne bill for Dom Perignon at the Shangri-La in Manila totaled more than $50,000. The officers accompanied the champagne with $2000 Cohiba cigars.
1. Personal favors.
Leonard arranged for one of Cmdr. Hornbeck’s relatives to receive an internship at the Chalet Suisse Hotel in Kuala Lumpur, and then paid for his living expenses – a total cost of $13,000.
Other favors include VIP services for an officer’s wife’s trip to Thailand, including a tour and shopping spree in Bangkok, a family vacation for the Shedds in Singapore and Malaysia totaling $30,000, gifts of iPads and Versace purses for officers’ wives, boxes of beef (I don’t want to know the details), and three hours of lap dances in Tokyo.