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Monday
Feb012016

U.S. Navy officer jailed 40 months for selling classified information to defense contractor

A U.S. Navy Lieutenant Commander was sentenced Friday to 40 months in prison for giving classified information to Singapore-based Glenn Defense Marine Asia (GDMA) in exchange for cash, hotel expenses, and the services of a prostitute.

In April 2015, Todd Dale Malaki, 44, pleaded guilty to one count of conspiracy to commit bribery.

His offenses started in 2006 while he was working as a supply officer for the U.S. Navy’s Seventh Fleet. He made a deal with Leonard Glenn Francis, the former president and CEO of GDMA. The company provided port services to U.S. Navy ships and submarines throughout the Pacific. 

U.S. District Judge Janis L. Sammartino of the Southern District of California also ordered Malaki to pay a $15,000 fine and $15,000 in restitution to the Navy.

Malaki provided Francis -- also known as Fat Leonard -- with classified U.S. Navy ship schedules and proprietary invoicing information about GDMA’s competitors. In exchange, Malaki accepted luxury hotel stays in Singapore, Hong Kong, and the island of Tonga, as well as envelopes of cash, entertainment expenses, and the services of a prostitute. 

The total value of the benefits Malaki accepted from Francis was about $15,000.

Ten individuals have been charged in the case. Nine of them have pleaded guilty, including Malaki, Commander Michael Vannak Khem Misiewicz, Captain Daniel Dusek, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez, and U.S. Navy Petty Officer First Class Dan Layug. 

Layug was sentenced in January to 27 months in prison and a $15,000 fine. The others are waiting to be sentenced.

Paul Simpkins, a former Department of Defense civilian employee, is waiting for trial. 

Three rear admirals including the commander of naval forces in Japan announced their retirements in early 2015 after the secretary of the Navy censured them for the bribery scandal.

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Richard L. Cassin is the publisher and editor of the FCPA Blog. He can be contacted here.

Richard L. Cassin is the publisher and editor of the FCPA Blog. He can be contacted here. - See more at: http://www.fcpablog.com/blog/2016/1/25/navy-petty-officer-is-first-of-nine-defendants-sentenced-in.html#sthash.h5IB3GcL.dpuf