Navy admiral guilty of lying about Fat Leonard relationship

A Navy admiral on Thursday pleaded guilty to lying to federal authorities investigating a $34 million fraud scheme involving a Malaysian contractor known as “Fat Leonard” becoming the highest-ranking military official to be taken down in the wide-spanning scandal.

Gilbeau has not been charged like other Navy officials in the case with accepting any bribes from Leonard Glenn Francis, nicknamed “Fat Leonard”, because of his wide girth.

The “Fat Leonard” corruption scandal involves the diverting of U.S. navy ships to several Southeast Asian ports owned by Malaysian contractor “Fat” Leonard Francis (photo).

A lawyer says a Navy admiral will plead guilty to lying in a probe of a bribery scandal that bilked the Navy out of $34 million.

Benowitz acknowledged that Gilbeau made a false statement when being questioned as part of a probe into a foreign defense contractor who allegedly won favorable treatment for his company by bribing Naval officers with prostitutes, luxury travel and others gifts.

Francis was chief executive of Singapore-based company Glenn Defence Marine Asia Ltd (GDMA) which serviced USA warships in the Pacific region for years by providing fuel, food and other services.

Gilbeau acknowledged that he lied when he told investigators that he always split the check with Francis when they had dinner together around three times each year.

Gilbeau pleaded guilty to making false statements from November 2012 to October 2013, about the nature of his relationship with Francis and his receipt of things of value over the course of years from Francis.

So far 14 people have been charged in the case including 11 current or former U.S. Navy officials.

“In his plea agreement, Admiral Gilbeau admitted that he lied when he told agents from Defense Criminal Investigative Service and Naval Criminal Investigative Service that he had never received any gifts from Leonard Glenn Francis, owner of Singapore-based Glenn Defense Marine Asia”. He was also under investigation for his ties to defense contractors operating in Afghanistan.

The contractor pleaded guilty arrested in an global sting operation in 2013, after defrauding the military of at least $34 million, according to the Los Angeles Times.

He also headed the Navy’s logistics response to the 2004 tsunami in Southeast Asia.

“It damages the trust that the nation places in us, and is an embarrassment to the Navy”, he said.

He said the Navy is fully cooperating with the Justice Department.

“We must go further”, Admiral Richardson said in a statement according to the Washington Post,”We must hold ourselves accountable to the highest standards of behavior, and work tirelessly to restore any damage that has been done to these crucial relationships”.

At the time, the company was already under scrutiny by the Navy for overbilling and fraud.