More Heads To Roll In ‘Fat Leonard’ Navy Scandal

More Heads To Roll In ‘Fat Leonard’ Navy Scandal

Navy Secretary Ray Mabus said Friday that he expected more damning revelations about the way the service conducts business to come out of the ongoing investigation of the alleged fraudulent activities of Glenn Defense Marine Asia and its chief executive, Leonard Glenn “Fat Leonard” Francis.

“It’s fair to say there will be more disclosures coming” and more top officers coming under suspicion in the contracting for port services for Navy ships worldwide, Mabus said at a Pentagon briefing. “I certainly don’t think we’ve seen the end of it.”

“I expect to continue to see headlines” in the felony fraud case involving bribes and prostitutes in which Francis currently is out on bail and under house arrest in San Diego, Mabus said.

“I would rather get bad headlines than let bad people get away,” Mabus said.

While condemning the fraud, Mabus hailed the Navy’s response. He said the Naval Criminal Investigative Service began to suspect that one of its agents, John Beliveau II, was tipping off Francis about Navy inquiries on his firm in exchange for luxury trips and prostitutes.

The NCIS planted bogus information with Beliveau that Francis was in the clear, setting up a sting operation in which Francis was lured in September to San Diego, where he was arrested in a fraud case developed by Laura E. Duffy, the U.S. Attorney for Southern California, Mabus said.

Earlier this week, Beliveau pleaded guilty to bribery charges in federal court in San Diego. The plea could be a major break in the case, if Beliveau has agreed to testify against others in return for leniency at sentencing.

Since September, two admirals, two captains, and two commanders have also come under investigation in the growing scandal involving GDMA, which has won contracts from the Navy worth more than $200 million since 2009.

Mabus had no immediate figures for how much the Navy spends each year for husbanding services –  meaning the supply of fuel, food and other basics for ships in port — and he also did not have an estimate on how much Francis allegedly made by overcharging the Navy.

However, Mabus described one method shady contractors routinely had used to boost charges for ships in port.  Ships’ commanders frequently complained that contractors were charging for far more waste water taken off Navy ships than actually occurred, Mabus said. To correct the problem, “we put in flow meters. Now we know” how much water is being removed, Mabus said.

In trying to describe the scope of the contracting problem, Elliott Branch, the deputy assistant Navy Secretary for Acquisition and Procurement, said that the Navy carries out about 350,000 separate transactions annually with contractors that were worth $75–95 billion.

The cost for husbanding services was a “small percentage” of the total amount for contracting, but still a significant sum, Branch said. He also could not immediately give an estimate for how much the Navy spends on husbanding services.

Mabus suggested that the temptation to defraud was difficult to suppress when government money was involved. “We go after people,” Mabus said, but “anytime you’ve got this kind of money (involved), you’ve got people trying to steal.”

“This not only goes against all the ethics rules we have” in the Navy, Mabus said, “this goes against everything we learned at home. Everybody knows it’s wrong to take a bribe.”

Francis allegedly bribed Navy officers with everything from cash to Lady Gaga tickets for advance information on where ships were heading.

The investigation of Francis and GDMA has also led the Navy to take a closer look at other firms providing husbanding services for ships.

On Thanksgiving eve, the Navy announced that its business with Britain-based Inchcape Shipping Services was being suspended while the Justice Department and the Navy investigated “questionable business integrity affecting ISS’s present responsibility to be a government contractor.”

“The suspension prevents Department of the Navy (DON) and all other Federal departments and agencies from entering into any new contracts” with Inchcape or its affiliates, Rear Adm. John F. Kirby, then the Navy’s chief of Information, said in a statement.

The Navy did not specify Inchcape’s “questionable” practices but the New York Times, citing court records from civil fraud suits, said the main allegation involved paying commissions to subcontractors for major discounts on work for the Navy. Inchcape then allegedly pocketed the difference rather than refunding the discounts said to be worth millions to the Navy.

Inchcape was an occasional competitor with GDMA in providing “husbanding” services including everything from tugboats to fuel and food for Navy ships at ports in the Pacific.


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It is sad that the paltry millions that this Leonard idiot made illegally will make the headlines in all the newspapers, but the fact that the f’ing LCS costs more to both design and build than the Iowa Class Battleship is not even on their radar. Hell, if a major news outlet did let that little tidbit of information slip out, the only real item of interest afterward would be how quickly the author and editor of the item would get fired for noticing. So complete is the strangle hold these multi-national defense corporation have on this nation, that they laugh openly about notions like “freedom of the press”. Hell, Phil of Duck Dynasty will get more “freedom of the press” than any actual issue effecting the US taxpayer in the defense sector will get.

“Heads will roll”! That could be the title for a new TV show. That is the only place we will ever see a head roll in the Federal Govt. Another TV show would be called “The cover up”!

“Heads will roll.”

Yeah, where heads rolling is defined as a reduction in grade and early retirement with diminished but otherwise intact pension benefits. Scary stuff, kids.

When was the last time anyone can remember that a ranking officer actually was broken over criminal financial malfeasance? Reduced to the lowest rank, dishonorably discharged, pension cancelled, a long stretch in prison?

The reason they keep doing this stuff is that they have learned the penalties are mild. Get caught? It’s a temporary setback, not the ruination of their lives. Where unfortunately they deserve to have their lives ruined.

Nothing compared to the money pi##ed away by W. for his “special” Middle Eastern pals

Saber Rattling by Mabus.…In the end after appeals everybody enjoys their earned Retirement…

While I am not a big supporter of the LCS the cost of a single Iowa class in 1943 was 100,000,000 dollars. Adjusted for inflation thats 1,600,000,000. So yea. Not quite. It would be better to compare it to a Destroyer Escort of the time.

One of these

Cost around 6,000,000 roughly in 1943. At todays prices they would be around 81,000,000 a copy.

However its important to remember that steel is not really the major cost in modern Warships. Its the Systems and Weapons on the ships. I Believe the price of just the basic Hull engines etc for a DDG-51 was somewhere between 200,000,000 and 400,000,000. However after you add the Radar, Phalanx, etc and all the other goodies they end up around 1.2 billion or so. So most of it is simply weapons and system.

Sweet Jesus MAN! Its been years and years let the fucking obsession GO!

Even Liberal people I know are tired of the (BUSH!) every time their is a conversation. Its like a fucking meme now.

It will be interesting to see what punishment is applied to those caught in this fraud. Why aren’t they tried and sentenced as civilians would be?



The hardcore leftists have to trot out the Bush boogeyman to justify the abject failure, both dometically and internationally, of their messiah.

“$1,866.3 million–LCS per unit cost” — http://​nationalpriorities​.org/​a​n​a​l​y​s​i​s​/​2​0​1​1​/​a​n​aly

Damn, in 3 minutes or less I was able to get my fact right. You should try it sometime. Last I checked $1.9 billion is greater than $1.6 billion, although I would like to congratulate you on being able to use one of the many available online index of inflation calculators.

And by the way, putting a 2,000 lb, 16″ diameter shell on target at a range of over 20 miles takes a little more than “lots of steel”. In 1940 American engineers were able to do it with little more than “stone knives and bearskins”. Now with was once a Cray sitting on the desk of every secretary that works at a defense contractor they can’t design or build a glorified PT boat for less than it cost to build an Iowa class battleship? You really want to be the apologist for that crap?

Yeah, like Obama hasn’t bent over backwards for his Saudi masters. Of course, he’s just doing what the Clinton’s did before him. Bush was an idiot, but when I start seeing a real difference in policy between the big 2, then I’ll start believing there are solutions in either the Dem or Rep talking points charts. All either one is now is a mouthpiece for the same bunch of multi-national corporations.

Defens, Actually, the FY 2012 DoD Selected Acquisition Report (SAR), notes the total LCS cost (in current dollars) at $33.955 billion for 50 ships. That’s $680 million a ship, including R&D, procurement, spares and any military construction. There’s no projects of life-cycle costs in those reports. Do your reports include life-cycle costs?

Dfens.….well to respond to your…um lets call it a reply and be adults.

The ships (WHICH IS WHAT WE ARE TALKING ABOUT) are around 400–600 mil per ship. This may come down as the ships are standardized. However because of the way these ships are built they are Vastly under gunned and the modules are not counted by many as part of the cost.

The Modules which in reality cost 300–400 more dollars if you buy them for all of the ships which we aren’t. represent a good bit of the cost per vessel even then.

My reply was the cost of a Battleship back in 1943 was 100,000,000 dollars adjusted for inflation that makes it 1.6 bil. The cost per LCS when you install the modules you are going to use will be under a billion dollars. Not 1.9 billion.

The truth of the matter is the LCS was built to operate on the same premise as a fighter aircraft. The problem is that they are not fighters. They are ships which will be insanely expensive to operate ans as we have seen when something goes wrong they become helpless.

The truth is these ships are very expensive to maintain because they require a army of contractors ashore to do the things ships crews should normally do. Massive life cycle cost but these are supported by lobbyist who get votes to congress critters.

The Mission modules are now acknowledged even by the Navy to take weeks if not longer to change out and require a major refit. This is also probably why both ship types were selected because both types of LCS were better at different things than the other.

The LCS IMHO is a screw up and shoud be canceled at 12 ships or less. The knowledge of what we did wrong as well as the technology from this program and DDG-1K should be taken and applied to 2 new frigate classes both of which excess at doing 1 thing and are ok at another thing. Not 20 different missions.

Tradition Frigates basically with small crews of around 100 or so which is the actual number for a LCS.

In short I am in agreement on the LCS not being a good Idea but was correcting a small problem with your post. I have been following these vessels and others and discussing it with the people who actually know what they are taking about (and of them 95% don’t like the LCS also) sense they were just idea’s.

So in effect you just made yourself look like a ass. My point being that much of the cost is actually in Systems which have advanced a lot from that age. Add to that presently the major cost for the US is in personnel not weapon systems. I think they are making a mistake basically and you are a ass.

They have only bought one ship so far and it cost $1.9 billion. That’s many times more than it was supposed to cost all the way up to they year they bought so you believe whatever you want to about those other 49 ships — most of which will never, I repeat never be bought or built. There’s one LCS right now. It cost the US government $1.9 billion. Those are the facts. The rest is BS! There are no recurring costs or maintenance in that number.

Thanks for all those words, because if you didn’t look like an idiot before that diatribe, you certainly do now. There’s one LCS. It cost $1.9 billion. There were several Iowa class battleships. They cost $1.6 billion each to build and cost quite a bit less than that to design. The math isn’t hard, even if it does suck to be wrong.

Corrupt military bras… that’s the worlds second oldest profession. face it we will nail these men but it never stop.

And the sad part is, across all the services, the upper echelons of leadership aren’t half held accountable to the same standards and ethics that the junior servicemembers/subordinates are required to sit thru annually and sign off saying (effectively), “we will show fortitude at all times”.

These failed leaders in this Navy instance: still will retire with full military pensions not reduced in the least,
yet not one of the willfully guilty persons here will see a punitive bust in rank, no loss in pay or benefits, effectively little more than a slap on the wrist when all is said and done.
Were it lower enlisted folk who did this, they’d have been busted to PV1 (or service equivalent) and sent to do time in Leavenworth or wherever.

Shining example of leadership not being held to the same standards of responsibility and accountable for their ethics breaches that they demand of their subordinates.
Fire them. No pensions.

And you still can’t read and comprehend what people are telling you while you rant and act like a arrogant ass. Thats OK. its the internet.

We are still at war, they should be lined up and shot.

And you, who don’t have a clue how to use “a” or “an” preceding a noun, presume to name-call someone who disagrees with your faux erudite jargon-heavy screed?

Who, the “corrupt military bras”? Or is that just another commenter who can’t spell or proofread? I think there is probably a UCMJ article that applies specifically to abuse of the military bra. Is it Article 36C? Not sure, but if it is corrupted, it should definitely be subjected the the severest punishment allowed by military law. Fer sher…

No its more a case of gov’t stupidity. Everything from trying to jump generations of technology to constantly changing specs and requirements. They also let contractors underbid for things they gov’t knows the company cant do and then gives the contactor more money in cost over runs to figure out the problem. Then instead of testing systems progressively they build the damned thing and try to figure out why it won’t work. Then they pay millions to the same contractor that screwed it up to fix it. The constant changing of specs and requirements probably doubles the procurement cost of most systems. And to that the incompetent boobs running the programs. I worked on a program that 20 yrs on we were still trying to fix all of the systems and logistics problems the original PM inflicted on the program from his incompetence.

Don’t forget the billions Clinton wasted pretending he cared about the muslims in Bosnia and Kosovo so he could get in on that speaking money daddy bush was raking in from the Saudis and Kuwaitis. And the $1 Billion in cruise missiles he wasted sending messages to ben laden.

Hear, Hear! The Bush Dynasty reigns supreme and didn’t need any help from Cheney, but still used it…, too easy.

So there is a vast government conspiracy to make these contracts cost more so the defense contractors can make more money… Aha, it is all clear now. By the way, it was the US Navy that designed the Iowa class battleship. Funny how there was no vast government conspiracy to jack up costs then, but there is now, don’t you think?

If these same crimes had been committed by enlisted, they would have been put away in the brig for the rest of their lives. These senior officers will probably get slaps on the hand, full retirement benefits, and move on to executive positions with huge salaries. Such a sorry double standard when it comes to officer punishments versus enlisted punishments.

Dfens– you obviously have a reading comprehension problem. Its called gov’t INCOMPETENCE. And the more money a program gets the more it wastes. There is negative incentives to cut costs or even not to spend money when you don’t need to spend it.

The American people got raked over the coals after Clinton laid off so many govt workers. Lots of contracting specialists that had tons of experience in stopping contracting fraud said screw it and retired. The new guys were clueless.

Add in company grade officers to those that get harshly punished. I’m a former Army Captain and it used to drive me nuts when a Jr officer or enlisted would get body slammed for something that 06’s and above when never even charged for doing worse.
After Grenada many high ranking officers were caught smuggling large quantities of AK’s, RPG, grenades etc and ether had nothing done to them or asked to retire with full pension. At the same time enlisted and Jr officers who brought home pistols and in some cases pistol grips were Courts Martialed and at best got a bad conduct Discharge while some went to jail. Same thing happened after Desert Storm.

Right, so the same government that was once competent enough to design the Iowa class battleship is now so incompetent that they all conspire together in such a way that no one can catch them or chastise them in any way to cause the requirements to change in such a way that costs go up. And the whole time these government employees are jacking the price of these programs up, the defense contractors are complaining about what these conspirators are doing at the same time they are taking record profits to the bank due to the very efforts of these government conspirators. You are f’ing nuts.

We all take/took the same oath. Why the disparity in the consequences??? An O-10 should receive the same punishment as an O-1 or E-1. Former ranks should not be a factor in cell-mate assignments.

Based on your reasoning, every murderer should get off with a slap on the wrist, since their death toll is much less than Stalin’s.

Did I say CONSPIRE? No I didnt. however they do cover for each other. No one questions things because it would indicate they arent doing thier jobs. No one stands up to say this is BS because that infers everyone before them was incompitent (even if its true) so they just keep doing the same thing until budget cuts stop them. Do you remember the SGT York? Or more recently the GMR system for JTRS? Billions wasted on a product they knew years before would never work but saying it was a boondogle would end a lot of careers so that exposee’ never happened. Look at all of the money wasted daily on construction projects. I know of a gov’t warehouse that was supposed to cost $7 million and it ended up costing over $17 million and they can’t keep the elevator or heat working. The gov’t wastes so much in incompetency that its a wonder anything gets done.


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