Home » Military Personnel » 9 More Indicted in ‘Fat Leonard’ Investigation; Retired Admiral Arrested at Home


9 More Indicted in ‘Fat Leonard’ Investigation; Retired Admiral Arrested at Home

Retired Rear Adm. Bruce Loveless. US Navy Photo

A federal court has indicted nine more officers – including a retired admiral — in the ongoing bribery and corruption probe into the operations of the Glenn Defense Marine Asia husbanding operation – the so-called “Fat Leonard” case.

On Tuesday, the nine were arrested, “in California, Texas, Florida, Colorado and Virginia. The United States will seek their removal to face charges in San Diego,” read a Tuesday statement from the U.S. Attorney’s Office for the Southern District of California.
“All are charged as conspirators in working with GDMA’s Leonard Francis to commit, “a colossal fraud that ultimately cost the Navy – and U.S. taxpayers – tens of millions of dollars.”

The highest ranking of those charged is retired Rear Adm. Bruce Loveless, 53, who was arrested at his home in Coronado, Calif. Loveless was the former Navy director of intelligence operations and had retired from the service in October.

Others indicted include four Navy captains, two commanders, a chief warrant officer and a retired Marine colonel.

“This is the first time multiple officers are charged as working all together in a multi-layered conspiracy, pooling their individual and collective resources and influence on behalf of Francis,” said prosecutors.

The federal charges range from bribery to corruption over 13 different counts alleging the accused traded classified information for elaborate dinners costing tens of thousands, luxury accommodations and time with prostitutes.

For example, “in March 2007, Francis hosted and paid for a multi-course dinner for several of the defendants at the Oak Door in Tokyo, Japan. The menu included foie gras, Lobster Thermidor, Sendai Tenderloin, and for dessert, Liberte Sauvage, the winning cake of the 10th Coupe du Monde de la Patisserie 2007, followed by cognac and cigars,” prosecutors say.

GDMA’s Leonard was arrested in September of 2013 after a three-year investigation by NCIS. Investigators said he crafted a web of Navy informants to provide classified ship movement data so his company could have a competitive advantage in bidding for ship husbanding contracts.

The nine arrested join, “a total of 25 named individuals have been charged in connection with the GDMA corruption and fraud investigation. Of those, 20 are current or former U.S. Navy officials; five are GDMA executives. Thirteen have pleaded guilty; other cases are pending,” read the statement.

Additionally, four former admirals have been censured over the investigation by the Navy for conduct that did not rise to criminal behavior but was deemed unacceptable to the service.

Service leaders were critical of those arrested.

“This behavior is inconsistent with our standards and the expectations the nation has for us as military professionals. It damages the trust that the nation places in us, and is an embarrassment to the Navy,” Chief of Naval Operations Adm. John Richardson said in a Tuesday statement.
“We are fully cooperating with officials from the Department of Justice and law enforcement agencies to ensure that those who violated the law are held accountable. But we must go further. We Naval officers have a professional and moral obligation to continuously examine our personal conduct to ensure that we embody the attributes of integrity and accountability.”

Previous to Loveless, the highest-ranking Navy officer charged with a crime during the investigation was senior supply officer Rear Adm. Robert Gilbeau. In June, Gilbeau pled guilty to one count of making a false official statement to federal investigators.

Undated photo of Leonard Francis

The following is a list of the nine officers arrested on Tuesday as part of the ongoing GDMA investigation from federal prosecutors.

Retired Capt. David Newland, 60, San Antonio, Texas
Chief of Staff to the Commander of the Seventh Fleet

Retired Marine Col. Enrico DeGuzman, 58, Honolulu, Hawaii
Fleet Marine Office of the Seventh Fleet, responsible for coordinating the missions of the U.S. Marine Corps with the Seventh Fleet; and Assistant Chief of Staff of Operations for U.S. Marine Corps Forces, Pacific

Retired Capt. James Dolan, 58, Gettysburg, Pa.
Assistant Chief of Staff for Logistics for the Seventh Fleet, responsible for meeting the logistical needs of every ship within the Seventh Fleet’s area of responsibility

Retired Capt. Donald Hornbeck, 56, United Kingdom
Deputy Chief of Staff for Operations for the Seventh Fleet, responsible for directing the operations of all combatant ships in the Seventh Fleet area of responsibility

Retired Rear Adm. Bruce Loveless, 53, Coronado, Calif.
Previously a Captain and Assistant Chief of Staff for Intelligence for the Seventh Fleet, responsible for assessing and counteracting foreign intelligence threats within the Seventh Fleet’s area of responsibility

Retired Capt. David Lausman, 62, The Villages, Fla.
Executive Officer of the aircraft carrier USS Abraham Lincoln; Commanding Officer of USS Blue Ridge; Commanding Officer of USS George Washington

Cmdr. Stephen Shedd, 43, Colorado Springs, Col.
Seventh Fleet’s South Asia Policy and Planning Officer, responsible for identifying ports that U.S. Navy ships would visit; and once promoted to Commander, served as Executive Officer and Commanding Officer of the USS Milius

Retired Cmdr. Mario Herrera, 48, Helotes, Texas
Fleet Operations and Schedules Officer for the Seventh Fleet, responsible for scheduling the port visits for ships and submarines in the Seventh Fleet’s area of responsibility (Herrera was previously charged in February 2017 via complaint)

Retired CWO Robert Gorsuch, 49, Virginia Beach, Va.
Seventh Fleet’s Flag Administration Officer, responsible for providing administrative support to the Seventh Fleet Commander and other senior officers on the Seventh Fleet staff

  • Josh Moore

    What the Navy has become is appalling.

    • Duane

      There’s always been a small number of corrupt, thieving, and sometimes treasonous officers in our military, and in every other military. Think Benedict Arnold. Or more recently, and even more destructively, John Walker and his family spy ring. It’s absolutely no reflection on any of their peers who don’t betray their nation and their fellow service members.

      • old guy

        I agree, but the stain is indelible, just the same. If treason can be proven in the release of ship movement data, I hope the full weight of the UCMJ is applied.

  • Jffourquet

    Why were these ative officers indicted in a civilian court? They should be courtmartialed and if convicted given a dishonorable discharge. Bet they will be given an honorable discharge and full retiremen benefits. Thereired officers shsousld be brough back on active duty to be court martialed and if convicted be dishonorably discharged.

    • el desconocido

      Stop talking as if you are an expert on military law. If you were, you would know that officers cannot be dishonorably discharged.

      • Gen. Buck Turgidson

        a little paranoid?

        • el desconocido

          paranoid about what?

    • Duane

      Being arrested on Federal charges of bribery and corruption that are applicable to any person acting on behalf of their Federal employment does not relieve the charged members from military courts martial liability. Apparently the Federal prosecutors believe this is the most effective way of dealing with these particular alleged crimes. Perhaps this Federal charging was done also to ensure that a panel of officers in a courts martial doesn’t attempt to whitewash the crimes, as military courts martials have done not all that infrequently throughout history. The military could also take a crack at prosecuting them under the UCMJ for different alleged offenses.

    • ChrisB

      Officers do not enlist and therefore cannot be discharged….dishonorably or otherwise They can receive a Dismissal Notice from their respective service Secretary only after a conviction in Courts Martial. Regardless, the officer is then known as a “felon”. In this particular case, the Navy can do any number of things: nothing; allow the Federal Court to adjudicate the proceedings or wait for the Fed Crt to finish then proceed with its own case within the UCMJ. Personally, I like the fact the Federal Court has taken the primary lead in prosecuting, it does not permit the Service(s) to sweep allegations under a rug and allow ‘favored’ individuals to retire in lieu of prosecution. Just my humble opinion

  • Nokali Fornia-Kweerz

    These are light sentences. Ship movement information is classified, particularily submarines- which they gave to a foreigner. I do not understand why they were not tried for espionage. Secondly, this is the tip of the iceberg- there must be hundreds of others who willfully colluded with their superiors to perpetuate this crime, others who looked the other way out of fear of reprisal, and others who were ordered to do it, were aware of it , or told to look the other way.

    • Gen. Buck Turgidson

      Perhaps why the VA these days refuses to post The presidents picture at some facilities then blames vets for troublemaking if they object,,,the New chief,,the WRONG pick

      • Disabled Veteran

        Vet them NSEERS

  • old guy

    As a WW2 vet, I just think of all the brave men who gave their lives over the past 80 years, that are dishonored by this bunch of cocktail-swilling thugs making a blot on the Navy’s honor that can never be erased. Next we should clean out the Congressmen and lobbyists who aided and abetted this rabble.

    • old guy

      The longer that I think about this, the angrier I become. Let us hope that the new administration cleans out this swamp also. The lock-in that all of the current contractors have from shipyards to service suppliers must change to a truly competitive arena if we are to restore Navy pride.

  • Gen. Buck Turgidson

    Military types work for the wrong corp,,,seeing the incredible corruption ,,crime etc commtted by higher management during 30 plus years with AT&T,,Post miitary Not Once did I see or hear of any media etc Prosecutions ,,only the perps skating thru or the power of it blanking the media,,the Miami area being a prime example,,Murders going unreported ,,drug cartels etc all operating with in the silent walls of the system,,

    • el desconocido

      What you’ve just written is one of the most insanely idiotic things I have ever read. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone on this website is now dumber for having read it. I award you no points, and may God have mercy on your soul.

      • Gen. Buck Turgidson

        About what I would expect from one of the most corrupt ethnic groups on the earth,,perhaps too close to home for you people??

  • SLIDINGINTOIT_911

    BRUCE…LOVELESS…FUN KNEE STUFF.

    KAY GRIGGS STATED THE TRUTH

    AND SHE CONTINUES TO .

    ____

    NOW ITS 60 PLUS OF THESE CREEPS , TREASONOUS SOLD OUT SCUM ,
    WHO DAMN WELL KNOW THAT THE OFFICIAL 9/11 STORYLINE , IS A FABLE,

    YET THEY ARE SO MUCH THE COWARDS , AND OWNED TWITS , THAT THEY DO NOTHING .

    • SLIDINGINTOIT_911

      HELVVVVV
      JUST LOOK AT THIS GUY , “BRUCE LOVELESS” …THIS IS WHO “LEADS ” [not]
      THE US MILITARY , CREvEPS JUST LIKE THIS …ANY TRUE PATRIOTvS WERE FIRED
      OVER THE PAST FEW ADMINISTRATIONS .

      YOU HAVE BEEN GOVJACKED , THEY HAVE THE FLAG,

      AND
      YOU ARE SO STUvvvPID AND LAZY AND UNINFORMED …[AND PROUD OF IT ] THAT
      YOU CONTINUE TO WAVE , THEIR , THEIR , ___THEIR_____ FLAG.

  • SLIDINGINTOIT_911

    building __ 7 .

    wake up.