US navy commander admits being bribed with cash and prostitutes

Commander Stephen Shedd pleads guilty to two bribery charges in ‘Fat Leonard’ case

Representative: A US navy commander has pleaded guilty for bribery and admitted to receiving cash and prostitution services from a foreign contractor in the Fat Leonard case (AFP via Getty Images)

A former US navy commander has pleaded guilty to receiving cash and prostitution services from a foreign contractor in exchange for state secrets.

Commander Stephen Shedd, 48, pleaded guilty to two bribery charges at a court in San Diego on Wednesday, reported the Los Angeles Times.

The crime is a part of what is known as the “Fat Leonard” case, named after influential Malaysian defence contractor Leonard Glenn Francis, who allegedly bribed senior admirals with prostitution services, Lady Gaga concerts and tickets to watch The Lion King.

Mr Francis, who founded Singapore-based Glenn Defence Marine Asia (GDMA), was arrested in 2013 in California.

Mr Shedd said along with eight other Navy members he had “received more than $250,000 [£186,408] in meals, entertainment, travel and hotel expenses, gifts, cash and the services of prostitutes” from GDMA.

The company provided husbanding services to ships in the US 7th fleet for years, according to the Justice Department.

The fleet is responsible for US navy ships and subordinate commands that operate in the western Pacific throughout Southeast Asia, the Pacific Islands, Australia, Russia and the Indian Ocean territories, along with ships and personnel from other US navy fleets that enter the 7th fleet’s area of responsibility.

Mr Francis had pleaded guilty to bribery and conspiracy charges in 2015 and has remained in prison and home detention since then. The sentencing in his case is awaited.

Mr Shedd, who was indicted in March 2017 along with the eight other navy members by a federal grand jury, is the third person to plead guilty ahead of the trial in the case.

Between 2006 to 2008, Mr Shedd served as the fleet’s South Asia policy and planning officer.

He was responsible for identifying ports that Navy ships would visit.

Mr Shedd admitted that along with other defendants in the case, he had given out schedules of naval movements and lobbied on behalf of GDMA to other naval officials, reported the BBC.

The Justice Department said the defendant knew these efforts would result in the service paying GDMA’s claims.

Prosecutors said that on the basis of information provided by Mr Shedd and others, GDMA was able to win and maintain contracts and overbill the navy by $35m (£26.1m) for services including providing tugboats, security and waste removal to ships at port.

Mr Shedd’s indictment had said that he was also one of the attendees of a $50,000 “raging multi-day party, with a rotating carousel of prostitutes, during which the conspirators drank all of the Dom Perignon available at the Shangri-La” in Manila, Philippines, in 2008.

“The defendant has admitted he was one of the many whose allegiance was switched from the Navy to Leonard Francis,” US attorney Randy Grossman was quoted as saying in a Justice Department release on Wednesday.

“This abdication of the defendant’s duties to the Navy and the United States comes with heavy consequences.”

US Naval Criminal Investigative Service (NCIS) director Omar Lopez said: “Cmdr Shedd abused his high-level position in the Navy by illegally accepting lavish gifts from Mr Francis in exchange for providing Mr Francis classified ship schedules listing numerous ships, specific ports, and dates for the visits far in advance of ship visits.”

A California federal court is scheduled to sentence Mr Shedd on 21 July.

The trial for the remaining six naval officials from 7^th fleet is set to begin on 28 February.

Twenty-eight of the total 34 naval officials, defence contractors and GDMA employees have pleaded guilty in the case along with two other 7^th fleet officers.