© APThis undated image released by the U.S. Navy and provided by The San Diego Union-Tribune shows Rear Adm. Bruce Loveless, who is accused of accepting the services of prostitutes, lavish meals and fancy trips from Leonard Francis in exchange for helping his company, Glenn Defense Marine Asia.
Retired Rear Adm. Bruce Loveless was among those charged with accepting luxury travel, pricey dinners and prostitutes from military contractor "Fat Leonard" Francis, the former chief of Glenn Defense Marine Asia. In exchange, the sailors provided him with classified information he then used to gouge the Navy for servicing ships.
The scheme, in which the defendants recruited new members and sought to keep their conspiracy secret through fake names, cost the Navy and taxpayers tens of millions of dollars, according to the indictment.
The raging party with prostitutes took place in May 2008 in the Presidential suite at the Makati Shangri-la Hotel in the Philippines "during which the conspirators drank all the Dom Perignon (Champagne) available," according to the indictment. Room charges and the bar tab exceeded $50,000.
Tuesday's indictment also stated that Francis "hosted and paid for a lavish party and the services of prostitutes in the MacAruthur Suite of the Manila Hotel" in the Philippines in Feb. 2007, according to the indictment. "During the party, historical memorabilia related to Gen. Douglas MacArthur were used by the participants in sexual acts."
At another dinner, Francis plied the sailors with foie gras terrine, duck leg confit, ox-tail soup and roasted Chilean sea bass paired with expensive wine and Champagne. He topped it off with fancy after-dinner drinks, "namely Hennessy Private Reserve (approximately $600 per bottle)," according to the indictment.
"This is a fleecing and betrayal of the United States Navy in epic proportions, and it was allegedly carried out by the Navy's highest-ranking officers," Acting U.S. Attorney Alana Robinson said in a statement. "The alleged conduct amounts to a staggering degree of corruption by the most prominent leaders of the Seventh Fleet — the largest fleet in the U.S. Navy — actively worked together as a team to trade secrets for sex, serving the interests of a greedy foreign defense contractor, and not those of their own country."
As of Tuesday, 25 people have been charged in connection with the corruption and fraud investigation. Of those charged, 20 are current or former U.S. Navy officials and five are Glenn Defense executives. To date, 13 have pleaded guilty while several other cases are pending.
The defendants were arrested early Tuesday in California, Texas, Pennsylvania, Florida, Colorado and Virginia.
Leonard, who has pleaded guilty to fraud, also used tickets to Lady Gaga concerts to bribe sailors.
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