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Julie DiMauro Contributing Editor

Thomas Fox Contributing Editor

Marc Alain Bohn Contributing Editor

Bill Waite Contributing Editor

Shruti J. Shah Contributing Editor

Russell A. Stamets Contributing Editor

Richard Bistrong Contributing Editor 

Eric Carlson Contributing Editor

Bill Steinman Contributing Editor

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Thursday
Apr162015

Navy officer is ninth defendant to plead guilty in ‘Fat Leonard’ bribe scandal

U.S. Navy Lieutenant Commander Todd Dale Malaki admitted accepting cash, hotel expenses, and the services of a prostitute in return for providing classified U.S. Navy ship schedules and other internal Navy information to the boss of a Singapore-based defense contractor.

Malaki, 44, of San Diego, pleaded guilty Wednesday in federal court there to one count of conspiracy to commit bribery.

He's scheduled to be sentenced on July 6.

Malaki admitted that in 2006, while working as a supply officer for the U.S. Navy’s Seventh Fleet, he began "a corrupt relationship" with Leonard Glenn Francis, the former president and chief executive officer of Singapore-based Glenn Defense Marine Asia (GDMA). The company provided services to U.S. Navy vessels at ports in Asia.

Malaki gave Francis -- a Malaysian who's also known as "Fat Leonard" -- classified U.S. Navy ship schedules and proprietary invoicing information about GDMA’s competitors.

In exchange, Francis provided Malaki with 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.

Malaki said the total value of the benefits he received was about $15,000.

He's the eighth individual to plead guilty in the Glenn Defense case. GDMA also pleaded guilty in January.

Two other individuals, Paul Simpkins, formerly a Department of Defense contracting officer, and Michael Misiewicz, a Captain-select in the U.S. Navy, were charged and have pleaded not guilty.

Assistant Attorney General Leslie R. Caldwell said Wednesday, “It is both troubling and disappointing how many Navy officers we have exposed as willingly falling prey to GDMA’s corruption, and our investigation remains active and ongoing."

"Those who serve in our nation’s military must uphold the public’s trust or pay the consequences for their crimes,” Caldwell said.

In February, three U.S. Navy rear admirals -- including the commander of naval forces in Japan -- announced their retirements after the secretary of the Navy censured them for the Glenn Defense scandal.

Naval Forces Japan commander Rear Adm. Terry Kraft and rear admirals Michael Miller and David Pimpo received censure letters from Secretary Ray Mabus.

The letters were intended to “document their failure of leadership” for the handling of Glenn Defense Marine Asia between 2006 and 2007.

The three admirals haven't been criminally charged.

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