Second U.S. Navy Officer Indicted on Related Bribery Charges
A commander in the U.S. Navy pleaded guilty to federal
bribery charges today, admitting that he provided a government contractor with
classified ship schedules and other internal U.S. Navy information in exchange
for cash, travel and entertainment expenses, as well as the services of
prostitutes. A second U.S. Navy officer
was also indicted today on related bribery charges by a federal grand jury in
the Southern District of California.
Assistant Attorney General Leslie R. Caldwell of the Justice
Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern
District of California, Director Andrew L. Traver of the Naval Criminal
Investigative Service (NCIS) and Deputy Inspector General of Investigations
James B. Burch of the Department of Defense, Defense Criminal Investigative
Service (DCIS) made the announcement.
“Commander Sanchez sold out his command and country for cash
bribes, luxury hotel rooms, and the services of prostitutes,” said Assistant
Attorney General Caldwell. “After
today’s guilty plea, instead of free stays at the Shangri-La hotel, Sanchez is
facing many nights in federal prison.
The Department of Justice’s Criminal Division is committed to
prosecuting those who abuse positions of public trust for personal enrichment
at the expense of national security and the American taxpayers.”
“During the course of the investigation into this criminal
enterprise, investigators have compiled voluminous evidence identifying
multiple persons of interest, generating numerous leads, and establishing and
corroborating connections,” said Director Traver. “NCIS and our law enforcement partners are
committed to seeing this massive fraud and bribery investigation through to its
conclusion, so that those responsible are held accountable.”
“This outcome yet again sends the message that corruption
will be vigorously investigated and prosecuted,” said Deputy Inspector General
of Investigations Burch. “This is an
unfortunate example of dishonorable Naval officers who recklessly risked the
safety of our troops by trading classified information for cash, extravagant
gifts and prostitutes. Cases such as
these are not motivated by need or other difficult personal circumstances; they
are the product of simple greed. This
investigation should serve as a warning that those who compromise the integrity
of the United States will face their day of reckoning. DCIS and our law enforcement partners will
pursue these crimes relentlessly.”
Jose Luis Sanchez, 42, an active duty U.S. Navy Officer
stationed in San Diego, California, is one of seven defendants charged – and
the fifth to plead guilty – in the corruption probe involving Glenn Defense
Marine Asia (GDMA), a defense contractor based in Singapore that serviced U.S.
Navy ships and submarines throughout the Pacific. Sanchez pleaded guilty to bribery and bribery
conspiracy before U.S. Magistrate Judge David H. Bartick of the Southern
District of California. A sentencing
hearing was scheduled for March 27, 2015, before U.S. District Judge Janis L.
Sammartino.
According to his plea agreement, from April 2008 to April
2013, Sanchez held various logistical positions with the U.S. Navy’s Seventh
Fleet in Asia. Sanchez admitted that,
beginning in September 2009, he entered into a bribery scheme with Leonard
Glenn Francis, the CEO of GDMA, in which Sanchez provided classified U.S. Navy
ship schedules and other sensitive U.S. Navy information to Francis and used
his position and influence within the U.S. Navy to benefit GDMA. In return, Francis gave him things of value
such as cash, travel and entertainment expenses, and the services of
prostitutes. Sanchez admitted that this
bribery scheme continued until September 2013.
Francis was charged in a complaint unsealed on Nov. 6, 2013, with
conspiring to commit bribery; that charge remains pending.
In his plea agreement, Sanchez admitted to seven specific
instances in which he provided Francis with classified U.S. Navy ship and
submarine schedules. He also admitted
using his position and influence with the U.S. Navy to benefit GDMA and Francis
on various occasions. Further, Sanchez
admitted that he tipped Francis off about investigations into GDMA overbillings
and briefed Francis on internal U.S. Navy deliberations.
Sanchez further admitted that, in exchange for this
information, Francis provided him with cash, entertainment and stays at
high-end hotels. For example, in May
2012, Francis paid for Sanchez to stay five nights at the Shangri-La, a luxury
hotel in Singapore, and, two months later, Francis paid for Sanchez’s travel
from Asia to the United States, at a cost of over $7,500. Additionally, Francis arranged and paid for
the services of prostitutes for Sanchez while Sanchez was in Singapore and
elsewhere in Asia.
In addition to Sanchez, two other U.S. Navy officials –
former NCIS Special Agent John Beliveau and Petty Officer First Class Dan Layug
– have pleaded guilty in connection with this investigation.Two former GDMA
executives, Alex Wisidagama and Edmond Aruffo, have likewise pleaded guilty.
Also today, an indictment was returned against U.S. Navy
Captain-Select Michael Vannak Khem Misiewicz, 47, of San Diego, California,
charging him with a bribery conspiracy and seven counts of bribery. According to allegations in the indictment,
from at least as early as July 2011 until
September 2013, Misiewicz provided classified U.S. Navy ship schedules
and other sensitive U.S. Navy information to Francis and used his position and
influence within the U.S. Navy to benefit GDMA.
In return Francis allegedly gave him things of value such as cash,
travel and entertainment expenses, and the services of prostitutes.
The charges contained in a criminal complaint and indictment
are merely accusations, and the defendants are presumed innocent unless and
until proven guilty.
The ongoing investigation is being conducted by NCIS, DCIS
and the Defense Contract Audit Agency. The case is being prosecuted by Director
of Procurement Fraud Catherine Votaw and Trial Attorney Brian R. Young of the
Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher
and Robert S. Huie of the Southern District of California.
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