The US Navy’s worst bribery scandal in history took an unexpected turn on Wednesday, when a federal judge vacated the felony convictions of four former Navy officers who were accused of accepting bribes from a defense contractor nicknamed “Fat Leonard”.
Prosecutorial misconduct led to the decision
The four officers — former Capts. David Newland, James Dolan and David Lausman and former Cmdr. Mario Herrera — were previously convicted by a federal jury on various counts of accepting bribes from Leonard Francis, a Malaysian businessman who ran a company that provided services to Navy ships in Southeast Asia.
Francis admitted to buying off dozens of top-ranking officers with booze, sex, lavish parties and other gifts. Prosecutors said he bilked the Navy out of more than $35 million by overcharging for his services or charging for fake ones.
However, at a sentencing hearing in San Diego, Assistant U.S. Attorney Peter Ko, who was brought on after the trial, admitted to “serious issues” with prosecutorial misconduct and asked the judge to vacate the officers’ convictions. He said his office does not agree with all of the allegations of misconduct but some were true.
U.S. District Judge Janis Sammartino called the misconduct “outrageous” and agreed to allow the four men to plead guilty to a misdemeanor and pay a $100 fine each.
Defense attorneys had long accused the prosecution of lying to the court and unfairly pressuring witnesses to testify on the stand to a narrated script.
The officers admitted to breaking the law
Despite the reduced charges, the four officers admitted for the first time, under oath, that they broke the law and were guilty of crimes related to their official duties.
Three of them pleaded guilty to one count each of disclosing information, and Lausman pleaded guilty to a charge of destruction of government property, for smashing a hard drive with a hammer.
The officers also agreed to cooperate with the government in any future investigations or prosecutions related to the scandal.
They expressed remorse for their actions and apologized to their families, friends and the Navy.
“I made a terrible mistake,” Newland said. “I betrayed my oath, my shipmates and my country.”
The scandal has tarnished the Navy’s reputation
The scandal, which spanned years and involved dozens of Navy officials, defense contractors and others, has been an embarrassment to the Pentagon and tarnished the reputation of the Navy.
More than two dozen people have been convicted and sentenced on various fraud and corruption charges in the case. Several others are awaiting sentencing next month.
It’s not clear if Wednesday’s development may jeopardize those cases.
Francis, who was dubbed “Fat Leonard” because of his girth, was arrested in a San Diego hotel in 2013 as part of a federal sting. He pleaded guilty in 2015 and cooperated with investigators in exchange for a lighter sentence.
However, three weeks before he was scheduled to be sentenced last year, Francis made a stunning escape, snipping off his ankle monitor and fleeing the San Diego residence where he had been under house arrest.
He was later captured in Venezuela, where he remains.