Penalized for liking pussy, Navy bribery scandal widens as more sordid details emerge

[Butthole Navy]

SAN DIEGO
Officers in a burgeoning Navy bribery scandal called themselves
the Lion King's Harem, the Wolfpack, the Cool Kids and the
Brotherhood. They scouted for others who might also accept sex,
trips and other lavish perks from a Malaysian defense contractor
known as "Fat Leonard" in exchange for classified information.

Allegations outlined in an indictment unsealed in San Diego on
Tuesday give more details in the 3-year-old scandal that had
appeared to be fading before re-emerging even bigger and more
sordid than before.

Nine current and former military officers were charged in the
latest indictment, including a recently retired rear admiral who
collected foreign intelligence for the Navy's Seventh Fleet.

It gives an extensive list of bribes to the officers from 2006
to 2012 from Leonard Francis in exchange for classified shipping
schedules and other information to help his company, Glenn
Defense Marine Asia. In one example, a party with prostitutes at
the Manila Hotel's MacArthur Suite during a 2007 port call to
the Philippines included sex acts using historic MacArthur
memorabilia.

One meal during a 2006 port visit to Hong Kong cost $20,435. A
dinner during a port call to Singapore that year featured foie
gras, oxtail soup, cognac that cost about $2,000 a bottle and
cigars at $2,000 a box.

Prosecutors say Francis, who is nicknamed Fat Leonard for his
wide girth, bilked the Navy out of nearly $35 million, largely
by overcharging for his company's services supplying Navy ships
in the Pacific with food, water, fuel and other necessities.

Navy officers provided classified information to Francis that
helped him beat competitors and, in some instances, commanders
steered ships to ports in the Pacific where his company could
charge fake tariffs and fees, prosecutors said.

The latest indictment raises the number of current and former
officials charged to 20 in one of the Navy's worst corruption
scandals. Bruce Loveless, who recently retired, became the
second admiral charged in the investigation.

Adm. John Richardson, the Navy's top officer, vowed Tuesday to
repair damage caused by the scandal.

"This behavior is inconsistent with our standards and the
expectations the nation has for us as military professionals,"
he said. "It damages the trust that the nation places in us, and
is an embarrassment to the Navy."

Loveless, 53, made no substantive comments during a brief
hearing hours after his arrest at his Coronado home near San
Diego. Magistrate Judge Mitchell Dembin entered a not guilty
plea on his behalf and ordered him released without bail. He did
not yet have an attorney,

Loveless was an assistant chief of staff, responsible for
assessing foreign intelligence in the Seventh Fleet's area of
responsibility, which includes Southeast Asia and Australia.

"Far from doing that, over the course of many years, this
defendant participated in wild sex parties," Patrick Hovakimian,
an assistant U.S. attorney, told the judge. "He has shown
callous disregard for his duties."

The judge also entered a not guilty plea on behalf of Enrico
DeGuzman, a former Marine colonel, and allowed him to remain
free. His attorney didn't respond to a request for comment.

Five other defendants were arrested Tuesday in Texas,
Pennsylvania, Florida, Colorado and Virginia. None had attorneys
listed in court documents.

The indictment describes how defendants collaborated to expand
their group. A 2007 email from Robert Gorsuch, a chief warrant
officer, to Francis says they were developing "personality
profiles" on potential recruits. A 2008 email to Francis from
Lt. Cmdr. Stephen Shedd says he and another defendant assessed
whether an officer was corruptible and concluded, "We still need
to be cautious with his participation in events."

Five executives of Francis' company also have been charged.
Francis has pleaded guilty to fraud and is awaiting sentencing.

"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," said Alana W. Robinson, the acting
U.S. attorney in San Diego.

To date, 13 defendants have pleaded guilty, including another
admiral who was sentenced in June and is believed to be the
first active-duty Naval flag officer charged in federal court.
Other cases are pending.

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