With so much news coverage of negative Trump stories on Tuesday thanks to the obsession of journalists to take down a U.S. President, it’s not surprising the purveyors of truth failed to cover a major case of alleged military corruption and criminal acts perpetrated by high-ranking Naval officers.
Rear Admiral Bruce Loveless (U.S. Navy-Ret) as well as eight serving, high-ranking Navy officers were indicted on criminal charges including accepting luxury travel, elaborate dinners and the services of prostitutes from foreign defense contractor Leonard Francis, the former Chief Executive Officer (CEO) of Glenn Defense Marine Asia (GDMA). Francis in return received classified and internal U.S. Navy information.
The case involving bribery, espionage and gross misconduct was investigated by members of Naval Criminal Investigative Service (NCIS) and the Defense Criminal Investigative Service (DCIS). The agencies’ commanders, Director Andrew Traver of NCIS and Director Dermot O’Reilly announced the indictments on Tuesday, along with representatives from the Justice Department and U.S. Attorney’s Office for the Southern District of California.
“This is a huge case and one that should be given serious attention. The media must stop their feverish anti-Trump partisanship and start informing the American people about what has been occurring in the United States,” said former police detective and director of corporate security Janet McTiernney. “We’re talking about high-ranking military officers trading classified material for gifts including sexual favors. It’s a disgusting story… but it must be reported,” she added.
Tuesday’s indictments bring the total to 25 named individuals who have been charged in connection with the corruption and fraud investigation into Leonard Francis’ GDMA, a defense-contracting firm based in Singapore. Of those charged, 20 are current or former U.S. Navy officials and five are GDMA executives. To date, 13 have pleaded guilty while several other cases are pending.
“The allegations contained in today’s indictment expose flagrant corruption among several senior officers previously assigned to the U.S. Navy’s Seventh Fleet. The charges and subsequent arrests are yet another unfortunate example of those who place their own greed above their responsibility to serve this nation with honor?,” said Director O’Reilly. “This investigation should serve as a warning sign to those who attempt to compromise the integrity of the Department of Defense that DCIS and our law enforcement partners will continue to pursue these matters relentlessly.”
“Naval Criminal Investigative Service, in concert with our partner agencies, remains resolved to follow the evidence wherever it leads, and to help hold accountable those who make personal gain a higher priority than professional responsibility,” Director Traver. “It’s unconscionable that some individuals choose to enrich themselves at the expense of military security.”
Nine defendants were arrested on various charges including bribery, conspiracy to commit bribery, honest services fraud, obstruction of justice and making false statements to federal investigators when confronted about their actions. Four of the defendants are retired captains: (1) David Newland, 60, of San Antonio, Texas, (2) James Dolan, 58, of Gettysburg, Pennsylvania, (3) David Lausman, 62, of The Villages, Florida, and (4) Donald Hornbeck, 56, a resident of the United Kingdom. The other defendants arrested today included: (5) (Marine) Colonel Enrico Deguzman, 48, of Honolulu, Hawaii, (6) retired Chief Warrant Officer Robert Gorsuch, 48, of Virginia Beach, Virginia (7) retired Rear Admiral Bruce Lovelace, 48, of San Diego, California, (8) active duty Lieutenant Commander Stephen Shedd, 48, of Colorado Springs, Colorado and (9) active duty Commander Mario Herrera, 48, of Helotes, Texas.
The defendants were arrested early Tuesday morning in California, Texas, Pennsylvania, Florida, Colorado and Virginia. The United States will seek to move all of these cases to federal court in San Diego, California. Admiral Loveless was taken into custody at his home in Coronado and made his first appearance in federal court later on Tuesday afternoon.
According to the indictment, the Navy officers allegedly participated in a bribery scheme with Leonard Francis, in which the officers accepted travel and entertainment expenses, the services of prostitutes and lavish gifts in exchange for helping to steep lucrative contracts to Francis and GDMA and to sabotage competing defense contractors. The defendants allegedly violated many of their sworn official naval duties, including duties related to the handling of classified information and duties related to the identification and reporting of foreign intelligence threats. According to the indictment, the defendants allegedly worked in concert to recruit new members for the conspiracy, and to keep the conspiracy secret by using fake names and foreign email service providers. According to the indictment, the bribery scheme allegedly cost the Navy – and U.S. taxpayers – tens of millions of dollars.
According to a Justice Department press statement, In addition to the nine defendants charged Tuesday, the 11 Navy officials charged so far in the fraud and bribery investigation are:
(1) Admiral Robert Gilbeau, (2) retired Captain Michael Brooks, (3) Commander Jose Luis Sanchez, (4) Captain Daniel Dusek, (5) former Department of Defense civilian employee Paul Simpkins, (6) Commander Michael Misiewicz, (7) Lieutenant Commander Gentry Debord, (8) Lieutenant Commander Todd Malaki, (9) Petty Officer First Class Daniel Layug, (10) Naval Criminal Investigative Service Supervisory Special Agent John Beliveau and (11) Commander Bobby Pitts.
Gilbeau, Brooks, Sanchez, Dusek, Simpkins, Misiewicz, Debord, Malaki, Layug and Beliveau have pleaded guilty. Gilbeau, Brooks, and Sanchez await sentencing. On March 25, 2016, Dusek was sentenced to 46 months in prison and ordered to pay a $70,000 fine and $30,000 in restitution to the Navy. On Dec. 2, 2016, Simpkins