-

..

.
1
2
3

4
5
6

LAURA E. DUFFY
United States Attorney
MARK W. PLETCHER (CO BN 34615)
ROBERT S. HUIE (CA BN 237374)
Assistant U.S. Attorneys
880 Front Street, Room 6293
San Diego, California 92101-8893
Telephone: (619) 546-9714
[email protected]
[email protected]

13

WILLIAM J. STELLMACH
Acting Chief, Fraud Section
CATHERINE VOTAW (DC BN 1012563)
Director, Procurement Fraud
BRIAN YOUNG (OH BN 0078395)
Trial Attorneys
Fraud Section
Criminal Division
U.S. Department of Justice
1400 New York Ave., N.W.
Washington, D.C. 20005
Telephone: (202) 353-0449
[email protected]

14

Attorneys for the United States

7
8

9
10
11

12

15

UNITED STATES OF AMERICA,

16
17
18
19

case No.

\'Qc.ro:f-~1
tW"~~

v.

\1:CQ.lt :1:6 :t

LEONARD GLENN FRANCIS,

PLEA AGREEMENT

Defendant.

20
21
22
23

IT IS HEREBY AGREED between the UNITED STATES OF

AMERICA, through its counsel, Laura E. Duffy, United

24

25
26
27

States Attorney, Mark W. Pletcher and Robert S. Huie,

Assistant United States Attorneys, William J. Stellmach,
Acting Chief, Fraud Section, Catherine Votaw, Director,

28

Procurement Fraud, and Brian Young, Trial Attorney, Fraud

Section, Criminal Division (collectively referred to as

"the United States"), and defendant LEONARD GLENN

3 FRANCIS, the President and Chief Executive Officer of

4

Glenn Defense Marine (Asia) Pte. Ltd.

("GDMA"), with the

6 advice and consent of Ethan M. Posner, Esq., and Sara J.

7

O'Connell, Esq., counsel for the defendant, as follows:

8
I:.

10
11

THE PLEA

A.

The Charges

12
13

14

The defendant agrees to plead guilty to a threecount Information charging the defendant with:

15

Count 1 - Conspiracy To Commit Bribery

16
17
18
19
20

21
22
23
24

25
26
27

28

Beginning in or about 2004, and continuing until

in or about September 2013, on the high seas and
outside of the jurisdiction of any particular
district,
FRANCIS,
GDMA,
GDMA employees,
and
others
(1)
knowingly and unlawfully combined,
conspired, and agreed with U.S. Navy officers and
employees and other federal employees, who were
public officials, to commit bribery, that 1s,
FRANCIS,
GDMA,
GDMA
employees,
these
public
officials, and others knowingly agreed that, in
return for these U.S. Navy officers and employees
and other federal employees being influenced in
the performance of official acts and being induced
to do and omit to do acts in violation of their
official and lawful duties, including providing to
FRANCIS and GDMA classified and other proprietary,
internal U.S. Navy information and using t~
Plea Agreement

Def. Initials

2
3
4

5
6
7

8
9

10
11

positions and influence within the U.S. Navy and

other federal agencies or entities to benefit
FRANCIS and GDMA,
(a) FRANCIS, GDMA, and GMDA
employees
would,
directly
and
indirectly,
corruptly give, offer, and promise things of value
to the U.S. Navy officers and employees and other
federal employees; and (b) the U.S. Navy officers
and employees and other federal employees would
directly and indirectly, corruptly demand, seek,
receive, accept, and agree to receive and accept
these things of value, all in violation of Title
18, United States Code, Sections 201(b) (1) (A) and
(C), and 201(b) (2) (A) and (C); and (2) FRANCIS and
his co-conspirators took overt acts in furtherance
of this conspiracy and to effect its unlawful
objects, all in violation of Title 18, United
States Code, Section 371.

12

Count 2 - Bribery

13

14
15
16

17

18

19
20
21
22
23

24

25
26

Beginning in or about January 2011, and continuing

until in or about September 2013, on the high seas
and outside the jurisdiction of any particular
district, FRANCIS knowingly engaged in a course of
conduct whereby he directly and indirectly, corruptly
gave,
offered,
and
promised
things
of
value,
including cash, travel, entertainment expenses, the
services of prostitutes, and other things of value to
Naval
Criminal
Investigative
Service
("NCIS")
Supervisory Special Agent John Bertrand Beliveau,
Jr., a public official, with the intent to influence
Beliveau 1n the performance of official acts, as
opportunities arose, and with the intent to induce
Beliveau to do and omit to do acts in violation of
his lawful duties, as opportunities arose, including
providing
to
FRANCIS
law
enforcement
sensitive
information and advice and counsel about ongoing NCIS
criminal
investigations
into
the
activities
of
FRANCIS and GDMA, all in violation of Title 18,
United States Code, Section 201(b) (1) (A) and (C).

27

28
Plea Agreement

Count 3 - Conspiracy To Defraud the United States

Beginning in or about July 2009, and continuing to

in or about September 2013, on the high seas and
outside
the
jurisdiction
of
any
particular
district,
FRANCIS
knowingly and
intentionally
combined, conspired, and agreed with GDMA, GDMA
employees, and others to defraud the United States
by obstructing the lawful functions of the United
States Department of the Navy through deceitful
and
dishonest
means,
namely,
by
submitting
fraudulently inflated claims for payment,
and
false and fraudulent documentation in support of
those claims for payment related to GDMA' s ship
husbanding contracts with the U.S.
Navy;
and
FRANCIS and his co - conspirators took overt acts in
furtherance of this conspiracy and to effect its
unlawful objects, all in violation of Title 18,
United States Code, Section 371.

2
3
4

6
7

8
9

10
11

12
13
14
15

16

17

Defendant

further

allegations

of

the

Information and agrees

agreement

and

the

plea

consents

to

attached

the

forfeiture
that

Forfeiture

this

Addendum

shall govern forfeiture in this case.

18

B.

Prosecution Of Additional Counts

19

In

exchange

for

the

defendant's

agrees

not

to

guilty pleas,

the

20

States

21
22
23

initiate

or

prosecute

any

dditional criminal charges against the defendant relating

o

fraud

involving

U.S.

Navy

husbanding

contracts,

or

24

u.s.

25

ribery

26

ederal employees,

27

othing

of

1n

this

or

other

committed prior to September 17,

20 1 3.

Navy

officers

agreement

or

employees

shields

defendant

28
Plea Agreement

Def. Initials _

_.;:.____
/.Y _

rosecution for other crunes.

The United States

is also

to prosecute the defendant for perjury or the giving

material false statement to a

federal agent 1n the

vent that the defendant commits such an offense after the

6

efendant
ornrnit

signs

this

plea

perJury or give a

agreement.
material

Should defendant

false

statement,

the

8
9

nited States,

10

rosecute

11

side

the

this

at

its

sole discretion,

defendant

plea

for

that

agreement,

and/or

will be

offense,
be

free

to

move

to

set

relieved

of

its

12
13

bligations under this agreement.

14

c.

15

This

Package Disposition -- GDMA

plea

agreement

is

part

of

"package"

16

disposition.
17

this

For the defendant to receive the benefits

18

of

agreement,

GDMA must

plead guilty at

the

19

time pursuant to a separately executed plea agreement.

20

II.
21
22

NATURE OF THE OFFENSES

23
24

A.

25

The offenses to which the defendant 1s pleading

26

Elements Explained

guilty have the following elements:

27

28
Plea Agreement

same

Count 1 - Conspiracy To Commit Bribery

1.

There was an agreement between two or more

persons to commit bribery;

2.

The defendant became a member of the

6 conspiracy knowing of at least one of its objects and

7

intending to help accomplish it; and

3.

10
11

One of the members of the

consp~racy

performed at least one overt act in furtherance of the

conspiracy and to effect its unlawful objects.

12

Count 2 -- Bribery

13

1.

14
15

The defendant gave/ offered/ and promised

things of value to a public official; and

16

2.

17

The defendant acted corruptly/ that is/ with

18

the intent to influence an official act by the public

19

official/ or with the intent to induce the public

20
21
22
23

official to do or to omit to do an act in violation of

his lawful duty.
Count 3 - Conspiracy To Defraud the United States

24

1.

25
26

There was an agreement between two or more

persons to defraud the United States by obstructing the

27

28
Plea Agreement

lawful functions of the United States Department of the

Navy through deceitful or dishonest means;

2.

The defendant became a member of the

4
5

conspiracy knowing of at least one of its objects and

intending to help accomplish it; and

3.

One of the members of the conspiracy

8
9

10

performed at least one overt act in furtherance of the

conspiracy and to effect its unlawful objects.

11

Forfeiture

12
13

The defendant understands that the Government would

14

have to prove by a preponderance of the evidence that the

15

property subject to forfeiture are property(ies) which

16

constitute or are derived from proceeds traceable to the

17
18

defendant's violations of 18 U.S.C. 371, conspiracy to

19

commit bribery; 18 U.S.C. 201(b), bribery; and 18

20

U.S.C. 371, conspiracy to defraud the United States.

21
22

B.

23

The defendant has fully discussed the facts of this

24

Elements Understood And Admitted - Factual Basis

case with defense counsel.

The defendant has committed

25
26

each of the elements of the charged crimes and admits

27

that there is a factual basis for his guilty pleas.

rrn

28
Plea Agreement

Def. Initials

_/j/-=-----

1
2

facts set forth in Attachment A (Stipulated Statement of

Facts) are true and undisputed.

III.

PENALTIES

The defendant understands that the crimes to which he

lS

pleading guilty carry the following penalties:

Count 1 - Conspiracy To Commit Bribery

10

A.

a maximum of 5 years in prison;

11

B.

a maximum fine of $250,000, or twice the gross

12

pecuniary gain or gross pecuniary loss from the

13

offense, whichever is greater;

14

15

c.

a mandatory special assessment of $100;

D.

a term of supervised release of three years; the

16

17
18

defendant understands that failure to comply with

19

any of the conditions of supervised release may

20

result in revocation of supervised release,

21
22

requiring the defendant to serve in prison all or

23

part of the term of supervised release;

24

E.

an order from the Court pursuant to 18

u.s.c.

25
26

3663A that the defendant make mandatory

27

restitution to the victim of the offense

28
Plea Agreement

Def. Initials

of~

_ff_=--- ---

conviction, 1n this case, the United States Navy.

The defendant understands that the Court shall

also order, if agreed to by the parties,

restitution to persons other than the victim of

the offense of conviction; and

6
7

F.

forfeiture of any property, real or personal,

which constitutes or is derived from proceeds

traceable to the offense.

10
11

Count 2 - Bribery

12

13
14

A.

a maximum of 15 years in prison;

B.

a maximum fine of $250,000, twice the gross

15

pecuniary gain or gross pecuniary loss from the

16

offense, or three times the monetary equivalent

17

of the thing of value, whichever is greater;

18

19

c.

a mandatory special assessment of $100;

D.

a term of supervised release of three years; the

20
21
22

defendant understands that failure to comply with

23

any of the conditions of supervised release may

24

result in revocation of supervised release,

25
26

requiring the defendant to serve in prison all or

27

part of the term of supervised release;

28
Plea Agreement

Def.

Initials__..!~::...__
_ _ _ __

E.

an order from the Court pursuant to 18 U.S.C.

3663A that the defendant make mandatory

2
3

restitution to the victim of the offense of

conviction, 1n this case, the United States Navy.

The defendant understands that the Court shall

6
7

also order, if agreed to by the parties,

restitution to persons other than the victim(s)

of the offense of conviction; and

10
11

F.

forfeiture of any property, real or personal,

12

which constitutes or is derived from proceeds

13

traceable to the offense.

14
15

Count 3 - Conspiracy To Defraud The United States

16
17
18

A.

a maximum of 5 years in prison;

B.

a maximum fine of $250,000, or twice the gross

19

pecuniary gain or gross pecuniary loss from the

20

offense, whichever is greater;

21
22

c.

a mandatory special assessment of $100;

23

D.

a term of supervised release of three years; the

24

defendant understands that failure to comply with

25
26

any of the conditions of supervised release may

27

result 1n revocation of supervised release,

28
Plea Agreement

10

requiring the defendant to serve in prison all or

part of the term of supervised release;

2
3

E.

an order from the Court pursuant to 18 U.S.C.

3663A that the defendant make mandatory

restitution to the victim(s) of the offense of

6
7

conviction, in this case, the United States Navy.

The defendant understands that the Court shall

also order, if agreed to by the parties,

10
11

restitution to persons other than the victim(s)

12

of the offense of conviction; and

13

14

F.

15

forfeiture of any property, real or personal,

which constitutes or is derived from proceeds

16

traceable to the offense.

17
18

IV.

19

DEFENDANT'S WAIVER OF TRIAL RIGHTS

20

The defendant understands that, by entering into this

21

guilty plea agreement, he knowingly and voluntarily

22
23

waives the right to:

A.

Continue to plead not guilty and require the

government to prove the elements of the crimes
beyond a reasonable doubt;

26

B.

A speedy and public trial by jury;

27

C.

The assistance of counsel at all stages

28

D.

Confront and cross-examine

24
25

Plea Agreement

11

1
2

E.

Present evidence and have witnesses testify on

behalf of the defendant;

F.

Not testify or have any adverse inferences drawn

from the failure to testify;

G.

Assert any rights and defenses defendant may have

under the Excessive Fines Clause of the Eighth
Amendment to the United States Constitution to
the forfeiture of property in this proceeding or
any related civil or administrative forfeiture
proceeding; and

H.

Assert any legal, constitutional, statutory,

regulatory, and procedural rights and defenses
that he may have under any source of federal law,
including among others challenges to personal
jurisdiction, extra-territoriality, statute of
limitations, venue, and the form and substance of
the Information, including any claim of
multiplicity or duplicity.

3
4

6
7

8
9

10
11

v.

12
13
14

DEFENDANT ACKNOWLEDGES NO PRETRIAL RIGHT TO BE

PROVIDED WITH IMPEACHMENT AND AFFIRMATIVE DEFENSE
INFORMATION

15

The United States represents that any information

16

establishing the factual innocence of the defendant known

17

to the undersigned prosecutors in this case has been

18
19

turned over to the defendant.

20

continue to provide any such information establishing the

21

The United States will

factual innocence of the defendant.

22
23
24

25

The defendant understands that if this case proceeded

to trial, the government would be required to provide
impeachment information relating to any informants or

26
27
28

other witnesses.

In addition, if the defendant raised an

affirmative defense, the government would

12
Plea Agreement

1
2
3

provide information in its possession that supports such

a defense.

The defendant acknowledges, however, that by

pleading guilty he will not be provided this information,

5
6
7

if any, and the defendant also waives the right to this

information. Finally, the defendant agrees not to attempt
to withdraw the guilty plea or to file a collateral

8
9

attack based on the existence of this information.

10

VI.

11

DEFENDANTs REPRESENTATION THAT GUILTY

PLEA IS KNOWING AND VOLUNTARY

12
13

The defendant represents that:

14

A.

The defendant has had a full opportunity to

15

16

discuss all the facts and circumstances of this case with

17

defense counsel and has a clear understanding of the

18

charges and the consequences of this plea.

The defendant

19

understands that, by pleading guilty, he may be giving up

20
21

and rendered ineligible to rece1ve valuable government

22

benefits and civic rights, such as the right to vote, the

23

right to possess a firearm,

the right to hold any office

24

25

of honor, trust, or profit under the United States, and

26

the right to serve on a jury.

27

The defendant further

understands that the conviction in this case

28
Plea Agreement

13

2
3

him to various collateral consequences, including but not

limited to deportation, removal or other adverse
immigration consequences; revocation of probation,

6
7

parole, or supervised release in another case; and

suspension or revocation of a professional license, none
of which will serve as grounds to withdraw the

8
9

10
11

defendant's guilty plea.

B.

No

one has

made

any promises

rewards in return for this guilty plea,

or

offered

any

other than those

12
13

contained in this agreement or otherwise disclosed to the

14

Court;

15

c.

No

one

has

threatened

the

defendant

or

the

16

17

defendant's family to induce this guilty plea; and

18

D.

19

truth and

The

defendant

in

fact

~s

pleading

the defendant

is

guilty
guilty,

because

in

and

no

for

20

other reason.
21
22
23

E.

Package

acknowledges

his

Disposition.
understanding

Defendant
that

the

expressly
disposition

24

contemplated by

this

agreement

is

part

of

"package"

25
26

disposition

with

of

the

27

United States under this agreement are conditioned o

he

GDMA,

whereby

28
Plea Agreement

14

the

obligations

performance

by

the

defendant

and

GDMA

of

their

obligations under their respective plea agreements.

VII.

4
5

6
7

8
9

AGREEMENT LIMITED TO U.S. ATTORNEY'S OFFICE

SOUTHERN DISTRICT OF CALIFORNIA AND THE FRAUD SECTION,
CRIMINAL DIVISION, UNITED STATES DEPARTMENT OF JUSTICE
This plea agreement is limited to the United States
Attorney's Office for the Southern District of California
and the Fraud Section, Criminal Division, U.S. Department

10
11

of Justice, and cannot bind any other federal, state or

12

local prosecuting, civil, administrative, or regulatory

13

authority, although the United States will bring this

14
15

plea agreement to the attention of any other authority if

16

requested by the defendant.

17

VIII.

18

APPLICABILITY OF SENTENCING GUIDELINES

19
20

The defendant understands that the sentence imposed

21

22

will be based on the factors in 18 U.S.C. 3553(a).

The

23

defendant understands that in imposing the sentence, the

24

Court must consult the United States Sentencing

25
26
27

Guidelines ("Guidelines") and take them i9to account.

The defendant has discussed the Guidelines

28
Plea Agreement

15

2
3

counsel and understands that the Guidelines are only

advisory, not mandatory, and the Court may impose a
sentence more severe or less severe than otherwise

6
7

applicable under the Guidelines, up to the maximum in the

statutes of conviction.

The defendant understands

further that the sentence cannot be determined until a

8
9

10
11

presentence report has been prepared by the U.S.

Probation Office and defense counsel and the United
States have had an opportunity to review and challenge

12
13

the presentence report.

Nothing in this plea agreement

14

shall be construed as limiting the duty of the United

15

States to provide complete and accurate facts to the

16

17

district court and the U.S. Probation Office.

18

IX.

19

SENTENCE IS WITHIN SOLE DISCRETION OF JUDGE

20
21

This plea agreement is made pursuant to Federal Rule of

22

Criminal Procedure ll(c) {1) (B).

The defendant

23

understands that the sentence is within the sole

24

discretion of the sentencing judge.

The United States

25
26

has not made and will not make any representation as to

27

what sentence the defendant will receive.

The d e f / j t

28
Plea Agreement

16

Def.

Initial?_-=~----

1
2
3

understands that the sentencing judge may impose the

maximum sentence provided by statute, and is also aware
that any estimate of the probable sentence by defense

counsel is a prediction, not a promise, and is not

binding on the Court.

Likewise, the recommendation made

by the United States is not binding on the Court, and it

8
9

10
11

is uncertain at this time what the defendant's sentence

will be.

The defendant also has been advised and

understands that if the sentencing judge does not follow

12
13

14

any of the parties' sentencing recommendations, the

defendant nevertheless has no right to withdraw the plea.

15

x.

16

PARTIES' SENTENCING RECOMMENDATIONS

17
18

A.

19

Although the parties understand that the Guidelines

Sentencing Guideline Calculations

20

are only advisory and just one of the factors that the
21
22

Court will consider under 18 U.S.C. 3553(a) in imposing

23

a sentence, the parties agree to jointly recommend the

24

following Guideline calculation to the Court using the

25
26

Guidelines, effective November 1, 2014.

27
28
Plea Agreement

17

The parties agree that, pursuant to USSG

3D1.2,

Counts One and Two described in this plea agreement

combine to form a single group (the "Bribery Group"), and

the Guideline calculation for the Bribery Group is:

Base Offense Level
[USSG 2C1.1(a) {2)]

6
7

Special Offense Characteristics -

More than One Bribe

[USSG 2C1. 1 (b) ( 1) ]

+ 2

Value of Benefit Received (more

than $7,000,000 but less than $20,000,000)
[USSG 2C1.1(b) (2)and
2B1.1(b)(1)(K)]
+20

10
11
12

Offense Involved Public Officials

In High-Level Decision-Making and
Sensitive Positions
[USSG 2C1. 1 (b) ( 3) ]

13
14
15

12

Total (Bribery Group)

+ 4

38

16
17

The parties further agree that pursuant to USSG 3D1.2,

18

Count 3 forms a separate group (the "Fraud Group") and

19

the Guideline calculation for the Fraud Group is:

20
21

Base Offense Level

[USSG 2B1.1(a) (2)]

22

Special Offense Characteristics -

23
24
25
26
27

Loss in excess of $20,000,000

[USSG 2B1.1(b) (1) (L)]

+22

Substantial part of the scheme

committed overseas, and use of
sophisticated means
[USSG 2B1.1(b) (10) (B) and (C)]

+ 2

28
Plea Agreement

18

Organizer/Leader
(USSG 3Bl.l(a)]

+ 4

Obstruction of the Administration

of Justice
[USSG 3Cl.l]

+ 2

2
3

4
5
6

Total (Fraud Group)

36

The parties further agree that pursuant to USSG

3D1.4

7
8

the combined offense level is determined as follows:

9
10
11
12

Highest Offense Level Group

(Bribery Group]

38

Addition of Fraud Group

+2

Total Combined Offense Level

40

13
14
15

The parties further agree to the application of the

following Guideline provisions, subject to Paragraph X.B.

16

Acceptance of Responsibility
[USSG 3El.l]

17
18

-3
-1

19

Combination of Circumstances
[USSG 5K2.0]

20

Total Combined Adjusted Offense Level

36

21
22

B.

Acceptance Of Responsibility

23

Notwithstanding Paragraph X.A, the United States will

24
25

not be obligated to recommend any adjustment for

26

acceptance of responsibility if the defendant engages 1n

27
28
Plea Agreement

19

conduct inconsistent with acceptance of responsibility

including, but not limited to, the following:

1.

Failing to truthfully admit a complete

factual basis as stated in Attachment A to

this plea agreement at the time the plea 1s

6
7

entered, or falsely denying or making a

statement inconsistent with, the factual

basis set forth in Attachment A;

10
11

2.

Falsely denying prior criminal conduct or

12

convictions;

13

3.

14
15

Being untruthful with the government, the

Court or the Probation Office;

16

4.

17

Materially breaching this plea agreement 1n

any way;

18

19

5.

Contesting or assisting any third party 1n

20

contesting the forfeiture of money,

21
22

property, or assets, which the defendant has

23

agreed to forfeit as set forth 1n the

24

attached Forfeiture Addendum, or

25

6.

26
27

Concealing, transferring, encumbering or

otherwise making unavailable any asse~

28
Plea Agreement

20

Def. I n i t i a l s - - - - - -

assisting any person therewith, excluding

reasonable family expenses to be agreed upon

by the parties, and attorneys' fees and

costs, which would otherwise be available to

the United States through exercise of legal

processes, domestic or foreign,

including

but not limited to MLAT requests, writs of

execution, motions to substitute property,

10
11

turnover orders, and writs of garnishment,

12

to satisfy any financial obligation imposed

13

by the Court including, but not limited to,

14
15

the forfeiture judgment, money judgment, and

16

restitution judgment.

17
18

c.

19

Further Adjustments and Sentence Reductions

Including Those Under 18 U.S.C. 3553

20

The parties agree that defendant will not request or

21

recommend additional downward adjustments and departures,

22

including criminal history departures under USSG 4A1.3,

23

24

pursuant to the United States Sentencing Guidelines.

The

25

defendant may, however, request or recommend a sentencing

26

variance pursuant to 18 U.S.C. 3553, and the United

27
28

States may oppose any such request or

Plea Agreement

21

recommendatio~
Def. Initials - - - - - -

D.

The parties have no agreement as to the defendant's

2
3

No Agreement As To Criminal History Category

Criminal History Category.

E.

6
7

Factual Basis And Relevant Conduct Information

The parties agree that the facts in Attachment A are

true, and may be considered as "relevant conduct" under

8
9

10
11

USSG

1B1.3, and as the nature and circumstances of the

offense under 18 U.S.C.

F.

3553(a) (1).

Parties' Recommendations Regarding Custody

12
13

The parties agree that the United States will

14

recommend that the defendant be sentenced within the

15

advisory guideline range as calculated by the United

16
17

18

States pursuant to this agreement.

G.

19

Special Assessment/Fine/Restitution
1.

Special Assessment

20

The parties agree that defendant will pay a special

21

22 assessment in the amount of $100.00 per felony count of

23

24

conviction to be paid forthwith at time of sentencing,

for a total of $300.00.

The special assessment shall be

25
26

paid through the office of the Clerk of the District

27

28
Plea Agreement

22

1
2

Court by bank or cashier's check or money order made

payable to the "Clerk, United States District Court."

2.

Fine

The parties have no agreement as to a recommended

fine,

if any, the Court may order the defendant pay.

3.

Restitution

8
9

The defendant agrees to the entry of an order of

10

restitution in the full amount of the victim(s)' losses

11

as determined by the Court pursuant to 18 U.S.C. 3556,

12

3663A(c) (1) (A) (ii), and 3664(f) (1) (A).

As of the date of

13

14

the execution of this plea agreement, the parties agree

15

that the loss to the United States Navy occasioned by

16

defendant's criminal conduct was at least more than

17
18

$20,000,000.

The parties agree to jointly move that the

19

Court hold a restitution hearing and enter an order of

20

restitution within 15 months of the execution of this

21
22

agreement.

23

be ordered payable as directed by the Court.

24

The defendant agrees that restitution shall

The parties

agree that amounts paid prior to sentencing pursuant to

25
26

defendant's forfeiture obligations as set forth in the

27

attached and incorporated Forfeiture Addendum shall b

28
Plea Agreement

23

2
3

applied to offset any of defendant's restitution

obligation ordered by the Court.

Any remaining

restitution obligation must be paid, as directed by the

Court.
The parties will further recommend that the Court

order defendant's liability for restitution to be joint

8
9

and several with that of GDMA and that any amounts paid

10

by GDMA prior to sentencing pursuant to GDMA's forfeiture

11

obligations shall be applied to offset any of defendant's

12
13

restitution obligation ordered by the Court.

After the

14

application of any amounts paid by GDMA, any remaining

15

restitution obligation must be paid by the defendant, as

16

17
18
19

directed by the Court.

The United States retains its rights at all times
to take all actions and take all remedies available to

20
21

collect the full amount of the restitution.

The

22

defendant agrees that the restitution, restitution

23

judgment, payment provisions, and collection actions of

24

this plea agreement are intended to, and will, survive

25
26

the defendant, notwithstanding the abatement of any

27

underlying criminal conviction after the execution of

28
Plea Agreement

24

this agreement.

The defendant further agrees that any

restitution collected and/or distributed will survive

him, notwithstanding the abatement of any underlying

5
6
7

criminal conviction after execution of this agreement.

The restitution shall be paid through the Office of
the Clerk of the District Court by bank or cashier's

8
9

10
11

check or money order made payable to the "Clerk, United

States District Court."
The defendant agrees that he will provide to the

12

13

United States within 90 days of the signing of this plea

14

agreement, under penalty of perjury, a full and complete

15

financial disclosure listing all of the defendant's

16
17

assets and financial interests valued at more than

18

$5,000, including all assets and financial interests,

19

tangible and intangible, real and personal, in which the

20

defendant has an interest, direct or indirect, whether

21
22

held in the defendant's own name, in trusb, in

23

partnership, the name of GDMA, in the name of any other

24

business which defendant owned, operated, controlled or

25
26

in which he had an interest, direct or indirect, as of

27

28
Plea Agreement

25

1
2

the date of the execution of this plea agreement, or 1n

the name of any other person, real or fictitious.
The defendant also agrees to identify, to the best

4
5

of his ability, all assets valued at more than $5,000

6 which have been transferred to third parties since

7

January 1, 2013, including the location of the assets and

the identity of the third party(ies). The defendant

10

further understands that any false statements made in

11

connection with these financial disclosures shall

12

constitute a breach of this agreement.

13

14

The defendant agrees that, other than reasonable

15

family expenses to be agreed upon by the parties, and

16

attorneys' fees and costs, prior to the date of his

17
18

completion of his custodial sentence he will not, nor

19

assist any third person to, transfer, encumber, conceal

20

or make unavailable, any asset or financial interest,

21
22

tangible or intangible, real or personal, with a value

23

over $5,000 in which the defendant has an interest,

24

direct or indirect, whether held in the defendant's own

25
26

name, in trust, in partnership, in the name of GDMA, in

27

the name of any other business which defendant

28
Plea Agreement

26

operated, controlled or in which he had an interest,

2 direct or indirect, as of the date of the execution of

3

this plea agreement, or in the name of any other person,

4
5

6
7

real or fictitious, without the prior, express, written

consent of the United States.
The parties will jointly recommend that, as a

8
9

10
11

condition of probation or supervised release, the

defendant will notify the Collections Unit, United States
Attorney's Office, of any interest in property valued at

12
13
14
15

over $5,000 obtained, directly or indirectly, including

any interest obtained under any other name, or entity,
including a trust, partnership, business or corporation

16
17

after the execution of this plea agreement until any fine

18

and restitution obligations are paid in full and

19

dis charged .

20

21

The parties will also jointly recommend that as a

22

condition of probation or supervised release, the

23

defendant will notify the Collections Unit, United States

24

25

Attorney's Office, before the defendant transfers any

26

interest in property owned directly or indirectly by the

27

defendant, including any interest held or owned un/Jer y

28
Plea Agreement

27

Def. Initials..:::;.__ _ _ __

2
3

other name or entity, including trusts, partnerships,

businesses, and/or corporations, valued at more than
$5,000, excluding reasonable family expenses to be agreed

upon by the parties, and attorneys' fees and costs.

XI.

8
9

DEFENDANT WAIVES APPEAL AND COLLATERAL ATTACK

In exchange for the concessions made by the United

10
11

States in this plea agreement, the defendant knowingly

12

and voluntarily waives, to the full extent of the law,

any right to appeal or to collaterally attack the

14
15

conviction and any lawful restitution order, except a

16

post-conviction collateral attack based on a claim of

17

ineffective assistance of counsel.

The defendant also

18
19

knowingly and voluntarily waives, to the full extent of

20

the law, any right to appeal or to collaterally attack

21

his sentence, except a post-conviction collateral attack

22
23

based on a claim of ineffective assistance of counsel,

24

unless the Court imposes a custodial sentence above the

25

total statutory maximum for the offenses of conviction.

26

If the custodial sentence is greater than the total

27

28

statutory maximum, the defendant may appeal, but

Plea Agreement

28

t~

Def. Initials __:4=----_."\:----

United States will be free to support on appeal the

sentence actually imposed on any available grounds.

at any time the defendant files a notice of appeal,

If

4
5

appeals or collaterally attacks the conviction or

sentence in violation of this plea agreement, this

violation will be a material breach of this agreement.

XII.

BREACH OF THE PLEA AGREEMENT

10
11

12
13

The defendant acknowledges, understands and agrees

that if defendant violates or fails to perform any of
defendant's obligations under this agreement or the

14
15
16

attached Addenda, such violation or failure to perform

may constitute a material breach of this agreement.

17
18
19

20

The defendant acknowledges, understands and agrees

further that the following non-exhaustive list of conduct
by the defendant unquestionably constitutes a material

21
22

breach of this plea agreement:

23

1.

Failing to plead guilty pursuant to this

24

agreement,

25
26

2.

27

Failing to fully accept responsibility as

established in Section X.B,

28
Plea Agreement

29

1
2
3

3.

Failing to appear in court,

4.

Attempting to withdraw the plea,

5.

Failing to abide by any lawful court order

related to this case,

6.

6
7

Failing to make forfeiture payments as set

forth in the Forfeiture Addendum,

7.

Failing to make restitution payments as

ordered by the Court,

10
11

8.

Appealing or collaterally attacking the

12

sentence or conviction in violation of

13

Section XI of this plea agreement,

14
15

9.

Engaging 1n additional criminal conduct from

16

the time of arrest until the time of

17

sentencing,

18
19

10.

Providing false information or making

20

material false omissions to the United

21
22

States in any financial disclosure or

23

otherwise, or

24

11. Attempting to hide, hiding, or transferring,

25
26

encumbering, or otherwise making unavailable

27

for collection of the forfeiture and

28
Plea Agreement

30

. -

.
restitution judgments or from the Court, or

assisting any person in doing so, any asset,

real or personal, tangible or intangible,

which defendant owns or has an interest in,

directly or indirectly, whether 1n his name

6
7

or the name of any other person or entity.

8
9

10
11

In the event of the defendant's material breach of

this plea agreement, the defendant will not be able to
enforce any of its provisions, and the United States will

12

13

be relieved of all its obligations under this plea

14

agreement.

For example, the United States may pursue any

15

charges including those that were dismissed, promised to

16
17

be dismissed, or not filed as a result of this agreement.

18

The defendant agrees that any statute of limitations

19

relating to such charges is tolled as of the date of this

20

21

agreement.

The defendant also waives any double jeopardy

22

defense to such charges, in the event that charges are

23

brought following a breach of this agreement by the

24

defendant.

The United States may move to set aside the

25
26

defendant's guilty plea.

The defendant may not withdraw

27
28
Plea Agreement

31

#_____

Def. Initials _ _

. .

.
1

2
3

the guilty plea based on the government's pursuit of

remedies for the defendant's breach.
Additionally, the defendant agrees that in the event

6
7

of the defendant's material breach of this plea

agreement:

(i) any statements made by the defendant,

under oath, at the change of plea hearing (before either

8
9

10
11

a Magistrate Judge or a District Judge);

(ii) the

stipulated factual basis contained in Attachment A; and

(iii) any evidence derived from such statements, are

12
13

admissible against the defendant in any prosecution of or

14

action against the defendant.

This includes the

15

prosecution of the charges that are the subject of this

16
17

plea agreement or any charges that the United States

18

agreed to dismiss or not file as part of this agreement,

but later pursues because of a material breach by the

20
21

defendant.

Additionally, the defendant knowingly and

22

voluntarily waives any argument under the United States

23

Constitution, any statute, Rule 410 of the Federal Rules

24

of Evidence, Rule ll(f) of the Federal Rules of Criminal

25
26

Procedure, and/or any other federal rule, that the

27
28
Plea Agreement

32

'

statements or any evidence derived from any statements

should be suppressed or are inadmissible.

3
4

XJ:J:J:.

ENTJ:RE AGREEMENT

6
7

This plea agreement,

with its addenda,

embodies the

8
9

10

entire agreement between the parties and supersedes any

other agreement, written or oral.

11

XJ:V.

12

MODJ:FJ:CATJ:ON OF AGREEMENT MUST BE :IN WRJ:TJ:NG

13
14

No modification of this plea agreement shall be

15

effective unless in writing signed by all parties.

16
17

XV.

18

DEFENDANT AND COUNSEL FULLY UNDERSTAND AGREEMENT

19

20
21
22

By signing this agreement, the defendant certifies

that the defendant has read it (or that it has been read
to him in defendant's native language).

The defendant

23

24
25

has discussed the terms of this agreement with defense

counsel and fully understands its meaning and effect.

26
27

28
Plea Agreement

33

XVI.

DEFENDANT SATISFIED WITH COUNSEL

3
4

The defendant has consulted with counsel and 1s

5 satisfied with counsel's representation.

This is the

6 defendant's independent opinion, and his counsel did not

7
8

advise him about what to say in this regard.

LAURA E. DUFFY
United States Attorney

10

11
12

DATED

MARK W. PLETCHER
ROBERT S. HUIE
Assistant U.S. Attorneys

13

WILLIAM J. STELLMACH
Acting Chief, Fraud Section

14

cW~!Mvp

15
16
17

CATHERiilE VOrlAW
Director, Procurement Fraud
BRIAN YOUNG
Trial At
Fraud

DATED

18

19
20
21

DATED

M. POSNER, ESQ.
SARA J. O'CONNELL, ESQ.
Covington & Burling LLP
Counsel for Defendant

t- s,t~

22

23

IN ADDITION TO THE FOREGOING PROVISIONS, WHICH I

UNDERSTAND AND TO WHICH I AGREE, I SWEAR UNDER PENALTY OF
PERJURY THAT THE FACTS IN THE "FACTUAL BASIS n SECTION
2 5 ABOVE, AND ATTACHED STATEMENT OF FACTS, ARE TRUE.
24

26
27

DATED

1-f-J t'

~GLENN~

Defendant

28
Plea Agreement

34

Def. Initials

ATTACHMENT A
STIPULATED STATEMENT OF FACTS
The United States and defendant Leonard Glenn Francis
hereby stipulate to the following statement of facts.
These facts are true and correct, and provide a
sufficient factual basis to support the entry of the
guilty pleas in this case.
BACKGROUND

1. The U.S. Navy is a branch of the U.S. Department

of Defense, whose mission is to maintain, train, and
equip combat-ready naval forces capable of winning
wars, deterring aggression, and maintaining freedom of
the seas. The U.S. Navy's 7th Fleet is its largest
numbered fleet, with 60-70 ships, 200-300 aircraft and
approximately 40,000 Sailors and Marines. The 7th Fleet
is responsible for U.S. Navy ships and subordinate
Commands which operate in the Western Pacific Ocean
throughout Southeast Asia, Pacific Islands, Australia,
and Russia as well as the Indian Ocean territories, as
well ships and personnel from other U.S. Navy Fleets
that enter the 7th Fleet's area of responsibility. The
USS Blue Ridge is the command and control ship of the
7th Fleet and houses at-sea facilities for 7th Fleet
senior officials. The U.S. Navy Military Sealift
Command ("MSC"} is responsible for the large scale,
bulk replenishment of supplies, fuel, munitions, and;j]
1

Def.

initials~

other required items to u.s. Navy vessels while they

are at sea or at port in locations abroad. Elements of
the MSC directly replenish u.s. Navy ships that are
underway at sea, enabling those ships to deploy for
long periods of time without having to come to port.
The MSC ships are made up of a core fleet of ships
owned by the U.S. Navy and other transport ships under
long term contracts to the U.S. Navy. The MSC has five
geographic area commands including MSC Far East, based
out of Singapore, which operates in the 7th Fleet area
of responsibility.
2. The U.S. Naval Supply Systems Command ("NAVSUP")
is a command within the U.S. Navy responsible for the
global supply and delivery of goods and services to
u.S. Navy personnel and warfighting assets. The U.s.
Navy Fleet Logistics Centers ("FLCs") are subordinate
commands of NAVSUP. The FLCs are located in various
domestic and foreign locations and provide logistics
support for naval installations and vessels operating
in their areas of responsibility. NAVSUP FLC commands
are responsible for soliciting, awarding, and
overseeing contracts for goods and services, including
contracts for ship husbanding. NAVSUP FLC in Yokosuka,
Japan ("FLC Yokosuka") directly supports naval
installations and vessels operating in Japan, Hong
Kong, and Russia. FLC Yokosuka also oversees the
2

Def. initials

operations of an FLC detachment in Singapore ("FLC

Singapore"), which directly supports naval
installations and vessels in Singapore, Indonesia, the
Philippines, Thailand, Cambodia, Vietnam, Australia,
and elsewhere.

THE DEFENDANTS: GDMA AND LEONARD GLENN FRANCIS

3. Defendant GLENN DEFENSE MARINE ASIA PTE. LTD.

("GDMA") is a multi-national corporation with
headquarters in Singapore and operating locations in
other countries, including Japan, Singapore, Thailand,
Malaysia, Korea, India, Hong Kong, Indonesia,
Australia, Philippines, Sri Lanka, and the United
States. GDMA is owned and controlled by defendant
LEONARD GLENN FRANCIS, who is the Group Executive
Chairman and President, and who oversees the daily
business and operations of the company. FRANCIS was
assisted by a core management team, consisting of
persons identified here by initials: HP, Vice President
Worldwide Contracts; NP, Vice President Global
Operations; AW, General Manager Global Government
Contracts; LR, General Manager, Singapore, Australia
and Pacific Islands; EA, Japan Country Manager; and PS,
Country Manager for Thailand, Cambodia, and Vietnam.
4. Defendant FRANCIS is a Malaysian citizen,
residing in Singapore.
3

Def. initials

5. GDMA is a commercial and government contractor

whose main business involves the "husbanding" of marine
vessels, and as such, GDMA is known as a "husbanding
service provider" ("HSP"). "Husbanding" involves the
coordinating, scheduling, and direct and indirect
procurement of items and services required by ships and
submarines when they arrive at port. Examples of items
and services required by ships and submarines when in
port include tugboats, fenders, port authority/custom
fees, security, provisions (food), fuel, water, trash
removal, collection, holding and transfer of liquid
waste ("CHT"), transportation, and many others.
6. GDMA has been husbanding vessels for the U.S.
Navy for over 25 years under contracts and purchase
orders issued by the U.S. Navy Supply Command
("NAVSUP") and its predecessor organization. Between
2006 and 2013, NAVSUP awarded GDMA multiple contracts
to provide husbanding services to U.S. ships and
submarines at ports throughout Singapore, Japan,
Philippine Islands, Malaysia, Pacific Island, South
Asia and Islands in the Indian Ocean, and in
particular, in June 2011, NAVSUP awarded GDMA three
regional contracts to provide husbanding services to
U.S. Navy ships and submarines at ports throughout

De f.

~ initials fJ_

Southeast Asia (Region 2), Australia and Pacific Isles

(Region 3), and East Asia (Region 4).
COUNT ONE - CONSPIRACY TO COMMIT BRIBERY

7. From in or about 2004 through in or about

September 2013, on the high seas and outside the
jurisdiction of any particular district, defendant
GDMA, defendant LEONARD GLENN FRANCIS, other GDMA
employees, and various U.S. Navy officers and employees
and other federal employees, all public officials, and
others known and unknown (1) knowingly and unlawfully
combined, conspired, and agreed to commit bribery, that
is, GDMA, FRANCIS, and their co-conspirators knowingly
agreed that, in return for their public official coconspirators being influenced in the performance of
official acts and being induced to do and omit to do
acts in violation of their official and lawful duties,
all as opportunities arose,

(a) GDMA, FRANCIS, and

other GDMA employees would directly and indirectly,

corruptly give, offer, and promise things of value to
their public official co-conspirators, including cash,
gifts, travel expenses, entertainment, and the services
of prostitutes, and {b) their public official coconspirators would directly and indirectly, corruptly
demand, seek, receive, accept, and agree to receive and
accept these things of value; and (2) GDMA, FRANCIS,

Oef. ini tialsf)_

and their co-conspirators took overt acts in

furtherance of this conspiracy.
8. As part of this conspiracy, GDMA, FRANCIS, other
GDMA employees regularly sought and their public
official co-conspirators provided classified
information about the U.S. Navy's scheduling of ship
and submarine port visits in the 7th Fleet's area of
responsibility. Classified ship schedules could not be
lawfully released by U.S. Navy officials to GDMA,
Francis, or other GDMA employees.
9. Armed with this classified information about
ship and submarine port visits, GDMA, FRANCIS, and
other GDMA employees sought to influence their public
official co-conspirators in the scheduling and
selection of U.S. Navy port visits, particularly for
the strategically important and lucrative aircraft
carriers, away from certain low revenue ports, such as
Singapore, and into "fat revenue GDMA ports" such as
"Phuket, [Laem Chabang, Thailand], [Port Klang,
Malaysia] PKCC, and now Kota Kinabalu".
10. As part of this conspiracy, GDMA, FRANCIS, and
other GDMA employees regularly sought and received from
their public official co-conspirators other internal,
proprietary U.S. Navy information, including
6

Def.

initials~

information about competitors' pricing and performance,

information about competitors' bids for U.S. Navy
contracts, information about the U.S. Navy's internal
deliberations about ship husbanding issues generally,
about GDMA's performance and potential billing
improprieties specifically, and information about NCIS
and U.S. Navy investigations into GDMA's practices.
11. As part of this conspiracy, GDMA and FRANCIS
regularly sought and received from their public
official co-conspirators favorable evaluations and
recommendations to others within the U.S. Navy.
12. As part of this conspiracy, GDMA, FRANCIS, and
other GDMA employees regularly sought and received from
their public official co-conspirators the exercise of
the public official co-conspirators' position and
influence within the U.S. Navy or the federal
government to benefit GDMA, as opportunities arose,
including: by the award of U.S. Navy contracts to GDMA,
by the scheduling and movement of U.S. Navy ships to
various ports favored by GDMA; and by the advocating
for and advancing GDMA's interests with the U.S. Navy
with respect to various ship husbanding

issues~

13. In return for the performance of these official

acts and in return for these public official co7

Def. initials _______

conspirators being induced to do and omit to do acts in

violation of their lawful duties, GDMA and FRANCIS
would give, offer, and promise public official coconspirators various things of value, including cash,
gifts, travel expenses, entertainment, and the services
of prostitutes.

14. The public official co-conspirators occupied

high-level, decision-making and sensitive positions.
Their actions of providing classified U.S. Navy ship
schedules, and other proprietary, internal U.S. Navy
information to GDMA and FRANCIS and using their
positions and influence within the U.S. Navy to benefit
GDMA and FRANCIS, as opportunities arose, violated the
lawful duties of these public official co-conspirators.

15. By way of representative examples of aspects of

the conspiracy described in Count One, and without
limitation, GDMA, FRANCIS, and other GDMA employees
engaged in corrupt relationships with the following
U.S. Navy officers and employees, among others:

A. CAPTA:IN-SELECT M:ICHAEL VANNAK KHEM M:IS:IEW:ICZ

16. From in or about December 2012 until in or

about September 2013, defendant MICHAEL VANNAK KHEM
MISIEWICZ was a Captain-select in the U.S. Navy
stationed in Colorado Springs, Colorado. From in or~
8

Def.

initials~

about January 2011 to in or about December 2012,

MISIEWICZ served as the Deputy Director of Operations
for the Commander of the 7th Fleet aboard the USS Blue
Ridge, home-ported in Yokosuka, Japan. From in or about
June 2009 to in or about January 2011, MISIEWICZ served
at the rank of Commander as the Commanding Officer for
the USS Mustin, a forward-deployed Destroyer class
vessel in the U.S. Navy's 7th Fleet, home-ported in
Yokosuka, Japan.
17. As early as June 2010, while in command of the
USS Mustin, Misiewicz first met GDMA representatives.
18. As a non-exhaustive sample of this particular
aspect of the conspiracy, on or about the dates set
forth in Column "A," MISIEWICZ, a public official,
directly and indirectly, corruptly demanded, sought
received, accepted, and agreed to receive and accept
from GDMA and FRANCIS the things of value or performed
the official acts, as set forth in Column "B," in
return for being influenced in the performance of
official acts and in return for being induced to do or
omit to do things in violation of his official duties,
as opportunities arose, including providing classified
and other internal, proprietary U.S. Navy information
to FRANCIS and GDMA on dozens of occasions, and using
his position and influence within the U.S. Navy to
9

Def.

initials~

benefit GDMA and FRANCIS by influencing the scheduling

and movement of U.S. Navy ships to various ports
favored by GDMA and by advocating for and advancing
GDMA's interests with the U.S. Navy with respect to
various other ship husbanding issues.
"A" - DATE

"B" - QUID or QUO

Feb. 14, 2011

Hotel expenses in Manila

June 24, 2011

Travel expenses for travel

to Kuala Lumpur, Malaysia
and Cambodia and
approximately $1500 cash.

Aug. 27, 2011

Misiewicz emailed FRANCIS

advising that the USS John
C. Stennis was adding a day
to its port visit to Port
Klang, Malaysia, and
stating: "See, you ask -- I
deliver! LoL!".

Nov. 25, 2011

Travel expenses for

Misiewicz's travel from
Japan to Cambodia and
Singapore, and for his
mother from Texas to
Cambodia and back.

Dec. 2011 - June 2012

Misiewicz provided
classified ship schedules /1
10

Def. init i a l s

ILl

_/

to FRANCIS on at least a
half dozen occasions
Apr. 27, 2012

Travel expenses for

Misiewicz's brother to
travel from the U.S. to
Cambodia and back.

May 17, 2012

Hotel expenses at a luxury

hotel in Singapore

July 2, 2012

Travel expenses for

Misiewicz and three family
members to travel from
Japan to Cambodia,
Singapore, and Malaysia.

Sept. 5, 2012

Hotel expenses at a luxury

hotel in Singapore.

Nov. 19, 2012

Travel expenses for

Misiewicz's travel from
Japan to Malaysia,
Cambodia, Singapore, and
back to Japan.

B. COMMANDER JOSE LUIS SANCHEZ

19. From in or about April 2013 until in or about

September 2013, Jose Luis SANCHEZ was a Commander in
the U.S. Navy stationed at United States Central
Command in Tampa, Florida. From in or about May 2012
until in or about April 2013, SANCHEZ served as the ~
11

Def. initials

Executive Officer for the Commanding Officer of FLC

Yokosuka. From in or about July 2010 until in or about
May 2012, SANCHEZ was the Director of Operations for
FLC Yokosuka. From in or about May 2008 to in or about
July 2010, SANCHEZ was the Deputy Logistics Officer for
the Commander of the 7th Fleet in Yokosuka, Japan.
20. As early as May 2008, when he was posted to
Yokosuka, Japan, SANCHEZ first met GDMA
representatives.
21. As a non-exhaustive sample of this particular
aspect of the conspiracy, on or about the dates set
forth in Column "A," SANCHEZ, a public official,
directly and indirectly, corruptly demanded, sought,
received, accepted, and agreed to receive and accept
from GDMA and FRANCIS the things of value or performed
the official acts, as set forth in Column "B," in
return for being influenced in the performance of
official acts and in return for being induced to do or
omit to do things in violation of his official duties,
as opportunities arose, including providing classified
and other internal, proprietary U.S. Navy information
to FRANCIS and GDMA on dozens of occasions, and using
his position and influence within the

u.s. Navy to

benefit GDMA and FRANCIS by influencing the purchase of

various ship husbanding services from GDMA, and by
12

Def. initials

V_j~-

otherwise advocating for and advancing GDMA's interests

with the U.S. Navy with respect to various other ship
husbanding issues.

"A" - DATE
May 27, 2011

"B" - QUID or QUO

A stay at a luxury hotel ln
Hong Kong and various sums
of money.

July 23, 2011

A stay at a luxury hotel in

Singapore and the servlces
of prostitutes.

May 14, 2012

A stay at a luxury hotel in

Singapore.

July 12, 2012

Travel expenses for SANCHEZ

and his daughter from Japan
to Texas and back to Japan.

Oct. 24, 2012

A stay at a luxury hotel in

Tokyo.

I
Jan. 4, 2013

A stay at a luxury hotel in

Tokyo.

I
I

13

Def. initials

fi)

C. CAPTAIN

~EL

DUSEK

22. From on or about January 11, 2009 to on or

about February 24, 2011, DUSEK was a Commander in the
United States Navy serving as the Deputy Director of
Operations for the 7th Fleet, aboard the USS Blue
Ridge, the flagship for the 7th Fleet. In this
position, DUSEK had input into the movement and
schedule of port visits for all the ships in the 7th
Fleet as well as ships from other Fleets transiting
through the 7th Fleet's area of responsibility. After
being succeeded by MISIEWICZ as Deputy Director of
Operations, from May 12, 2011 to on or about March 15,
2012, DUSEK was a Captain and the Commanding Officer of
the USS Essex, and from on or about March 15, 2012 to
in or about September 2013, DUSEK was the Commanding
Officer of the USS Bonhomme Richard.
23. Beginning in or around July 2010 in Asia, DUSEK
and his co - conspirators entered into a relationship by
which GDMA, FRANCIS, EA, and others, would give DUSEK
things of value, including meals, alcohol,
entertainment, dozens of nights and incidentals at
luxury hotels, gifts, and the services of prostitutes,
in return for DUSEK's providing to GDMA classified U.S.
Navy ship schedules and other proprietary, internal
U.S. Navy information, and as opportunities arose,

14

Def. initials

using his position and influence within the U.S. Navy

to benefit GDMA.
24. On or about July 13, 2010, DUSEK delivered to
GDMA Japan Country Manager EA classified U.S. Navy ship
schedules, noting to EA that GDMA had provided him with
significant things of value theretofore and that he
uwasn't worried about the security one bit". Having
received these schedules, EA sent Francis an email
exclaiming: u[DUSEK] is an official GDMA card
holder ... "
25. On or about July 19, 2010, GDMA paid for a
hotel room for DUSEK and his family at the Marriott
Waikiki and on August 5, 2010, GDMA provided DUSEK with
a hotel room at the Shangri-La in Makati, Philippines
and the services of two prostitutes while there.
26. Upon providing DUSEK with the hotel room and
entertainment in the Philippines, GDMA, Francis, and EA
asked DUSEK to exercise his influence on GDMA's behalf
in bringing the aircraft carrier, the USS Abraham
Lincoln, and its associated strike group, to Port
Klang, Malaysia ( uPKCC"), a port owned by Francis. In
furtherance of GDMA's interests in this regard, DUSEK
emailed EA on August 21, 2010, reporting ugood
discussion with NOO [Admiral] today and convinced hi~
15

Def. initials

L/JX

that PKCC is the better choice." On August 24, DUSEK

reported to Francis that he had

~everyone

in agreement

that the next CSG [Carrier Strike Group] through the

AOR [area of responsibility] will stop at PKCC. Dates
will be 08-12 Oct."

27. The USS Abraham Lincoln Carrier Strike Group

did make a port visit at PKCC on October 8-12, 2010.
The total GDMA invoice for this port visit was
$1,590,745.98.

28. On October 3, 2010, EA wrote to Francis,

further explaining GDMA's preferences for ship visits
at particular ports:

~r

will have [DUSEK] out this

week, will take care of him, and try to funnel as much

traffic out of Singapore as possible, understand the
preference is PKCC and Thailand." Francis replied:
"[DUSEK] is a golden asset to drive the big decks
[aircraft carriers] into our fat revenue GDMA ports
. Phuket,

[Laem Chabang, Thailand], PKCC, and now Kota

Kinabalu ... Plug that in his ear." Immediately

thereafter, on October 4, DUSEK wrote to Aruffo, using
a rudimentary code, alerting him to the proposed port
visits for the USS Peleliu Amphibious Readiness Group
( "ARG") . Aruffo responded, instructing DUSEK to replace
one ship's port visit to Singapore with a port visit in
Phuket, Thailand, one of the "fat revenue GDMA ports.~
16

Def. initials

-=(/'-----)__

DUSEK replied on October 5,

~Got

it. I will work on

it."
29. Continuing throughout the duration of this
aspect of the conspiracy, pursuant to their corrupt
relationship, DUSEK provided GDMA, Francis, and EA with
classified schedules of projected port visits by U.S.
Navy vessels approximately dozens of times and whenever
specifically requested to do so by EA. DUSEK would
deliver these schedules in person to EA at the GDMA
office in Japan or email them directly to EA, each
time, taking steps to avoid detection by law
enforcement or U.S. Navy personnel.
30. Also continuing throughout the duration of this
conspiracy, pursuant to their corrupt relationship,
DUSEK used his positions and influence within the U.S.
Navy, first as Deputy Director of Operations for the
7th Fleet and later as Commanding Officer of the USS
Essex and USS Bonhomme Richard, as opportunities arose,
to benefit GDMA and FRANCIS, including particularly in
the selection and scheduling of U.S Navy vessels' port
visits into GDMA-identified ufat revenue GDMA ports."
D. LT COMMANDER

31.
the

u.s.

is a Lieutenant Commander in
Navy who has been assigned to NAVSUP in
17

Def. initials

Ventura, California since May 2014. Prior to that, he

was the Supply Officer (\\SUPPO") for Naval Mobile
Construction Battalion in Oxnard, California, since
about March 2013.

From about October 2009 until his

transfer in about March 2013,

111111

was assigned to

MSC in Singapore as a Combat Logistics Officer (\\CLO").

As the CLO,

111111

was responsible for providing

logistics planning and support to the ships and

personnel who operated in the 7th Fleet's area of
responsibility.
2009,

111111

From about May 2007 to about October

was the SUPPO aboard the USS John McCain.

As a SUPPO on the USS John McCain,

111111

was

responsible for the management and procurement of goods

and services required by the ship and crew.
January 2005 to about May 2007,

111111

From about

was a SUPPO and

Operational Logistics Planner, aboard the USS Blue

Ridge.

There, l l l l l l's duties included planning,

budgeting and executing the procurement of goods and

services for 7th Fleet Forces to maintain readiness as
well as logistical planning for these forces.

32. Beginning in or around 2006 in Asia,

111111

and

his co-conspirators entered into a relationship by

which GDMA, FRANCIS, and others, would give
things of value, including cash,

111111

meals, alcohol,

entertainment, dozens of nights and incidentals at

luxury hotels, gifts, and the services of prostitute~

18

Def. initials _ __

in return for

111111

providing to GDMA, classified U.S.

Navy ship schedules and other proprietary, internal

U.S. Navy information, and as opportunities arose,
using his position and influence within the U.S. Navy
to benefit GDMA.

33.

As an additional part of this aspect of the

conspiracy, upon his imminent departure from MSC,

111111

attempted to recruit other U.S. Navy personnel

to provide Francis with classified ship schedules and

other internal, proprietary U.S. Navy information.

34. To this end, on about November 6, 2011,

111111

and FRANCIS exchanged SMS text messages regarding PV, a

U.S. Navy Lieutenant assigned to MSC Far East
Singapore.

FRANCIS stated,

ui nde [need] to meet PV

again to get him [o]nboard [sic].

111111

responded,

"Ok, he is a pussy guy so maybe show him a good time."

FRANCIS responded,

"Yeah Fuzzy n Gas."

"PV n pussy has 5 kids.

will be a lock."

111111

replied,

Set up some class pussy he

FRANCIS responded, "Roger will do."

E. U.S. NAVY LEAD CONTRACT SPEC:IAL:IST

35.

was a national and resident of

Singapore, who was employed by the U.S. Navy as a lead

contract specialist at the NAVSUP FLC Singapore, a
position she had held in Singapore for over 20 years.~
19

Def. initials

fl_

As a U.S. Navy contract specialist,

1111

was

responsible for the award and oversight of U.S. Navy

contracts, including various ship husbanding contracts
held by GDMA.
36. As a non-exhaustive sample of this particular
aspect of the conspiracy,

1111,

a public official,

directly and indirectly, corruptly demanded, sought

received, accepted, and agreed to receive and accept
things of value from GDMA and FRANCIS, including
without limitation travel expenses and hotel stays, in
return for being influenced in the performance of
official acts and in return for being induced to do or
omit to do things in violation of her official duties,
as opportunities arose, including providing internal,
proprietary U.S. Navy information to FRANCIS and GDMA
on numerous occasions, and using her position and
influence within the U.S. Navy to benefit GDMA and
FRANCIS, and advocating for and advancing GDMA's
interests with the U.S. Navy with respect to various
ship husbanding issues.
37. Over the course of this aspect of the
conspiracy, FRANCIS and GDMA provided

1111

with luxury

hotel stays in locations such as Bali, Bangkok, Dubai,

Turkey, and Greece.

20

Def. initials

F. PETTY OFFICER 1ST CLASS DAN MARTIN TIMBOL LAYUG

38. April 2011 to April 2014, LAYUG was a Petty

Officer First Class in the U.S. Navy assigned to the
U.S. Navy's Fleet Logistics Center in Yokosuka, Japan.
In this position, LAYUG was responsible for screening,
processing, coordinating, tracking, and expediting
logistics requirements in support of U.S. Navy vessels.
Prior to this assignment, from March 2007 to March
2011, LAYUG was assigned to the USS Blue Ridge, the
command flagship for the U.S. Navy's 7th Fleet, in
several logistics roles, including shopkeeper and
government purchase card program manager.

39. Beginning in or about November 2010, and

continuing to in or about September 2013, LAYUG, GDMA,
FRANCIS, and others entered into a relationship in
which GDMA would give LAYUG things of value, including
cash, consumer electronics, and payment by GDMA of
LAYUG's travel expenses; and in return LAYUG would
provide classified U.S. Navy ship schedules and other
proprietary, internal U.S. Navy information to GDMA.

40. As part of this aspect of the conspiracy,

FRANCIS, GDMA, and other GDMA employees arranged to
give LAYUG a monthly

~allowance"

in cash. In return for

this cash, LAYUG provided updated classified U.S. Navy

ship schedules at the demand of GDMA employees,
21

Def.

often~

initials~

passing the classified information and receiving an

envelope with his cash allowance in the parking lot of
the GDMA facility in Japan.
ADDITIONAL ASPECTS OF THE BRIBERY CONSPIRACY

41. In addition to those representative examples

discussed above, as additional aspects of this
conspiracy, GDMA, FRANCIS, and other GDMA employees
maintained corrupt relationships with scores of other
U.S. Navy officers and employees and federal employees.
42. In the aggregate, over the course of the
conspiracy described in Count One, GDMA and FRANCIS
gave their public official co-conspirators millions of
dollars in things of value including over $500,000 in
cash; hundreds of thousands of dollars in the services
of prostitutes and associated expenses; hundreds of
thousands of dollars in travel expenses, including
airfare, often first of business class, luxurious hotel
stays, incidentals, and spa treatments; hundreds of
thousands of dollars in lavish meals, top-shelf alcohol
and wine, and entertainment; and hundreds of thousands
of dollars in luxury gifts, including designer handbags
and leather goods, watches, fountain pens, fine wine,
champagne, Scotch, Kobe beef, Spanish suckling pigs,
designer furniture, Cuban cigars, consumer electronics,
ornamental swords, and hand-made ship models.
22

Def. initials

43. In addition to being influenced in the

performance of their official acts and being induced to
do and omit to do acts in violation of their lawful
duties, many of the public official co- conspirators
recruited other U.S. Navy officers and employees to
join the conspiracy by using their positions and
influence within the U.S. Navy to benefit GDMA.
44. As an additional aspect of the conspiracy, the
co-conspirators endeavored to keep their corrupt
relationships secret and evade detection by law
enforcement by, for example, using email accounts
established for the sole purpose of communicating among
members of the conspiracy, periodically deleting email
and entire email accounts, using code to communicate,
and using methods of communication thought difficult to
detect or intercept by law enforcement, such as
foreign-based email providers, Skype callas and chat,
Whats App messenger, and Blackberry chat services.
45. As an additional part of the conspiracy, as set
forth in Count Two below, GDMA and FRANCIS maintained a
corrupt relationship with Naval Criminal Investigative
Service Special Agent John Beliveau, who was given

7/i)_

cash, travel expenses, the services of prostitutes and

other things of value in return for providing to

FRANCIS information about pending NCIS investigatio

23

Def. init i a l s

into GDMA and FRANCIS and advice and counsel about how
to respond to, stall, and thwart those investigations.

COUNT TWO - BRIBERY

46. Beginning in or about January 2011, in order to

promote and facilitate his business and personal
interests, Francis sought, entered into and then
maintained a corrupt relationship with John Beliveau,
an NCIS Special Agent, who was then stationed in
Singapore.

Pursuant to this corrupt relationship,

Francis would give Beliveau cash, travel and

entertainment expenses, the services of prostitutes,
and other things of value, and in return Beliveau would
conduct regular searches of the NCIS database, which
housed information about ongoing NCIS investigations,
download NCIS reports involving investigations into the
activities of GDMA and Francis, provide copies of these
reports to Francis, and give Francis advice and counsel
on how to respond to, stall, and thwart these NCIS
investigations.

This corrupt relationship continued

until September 2013.

47. At all times, Beliveau was a "public official"

within the meaning of 18 U.S.C.

201(a), al nd as an

NCIS Special Agent, occupied a high-level decision

making and sensitive position.

His actions providing

law enforcement sensitive information, and advice abfl:J

24

De f.

initials

V-L

how Francis should respond to ongoing NCIS

investigations, violated his official and lawful
duties.
48. Among the law enforcement sensitive information
provided by Beliveau to Francis were the identities of
the subjects of the investigations; the information
provided by witnesses and documents, including
identifying information about cooperating witnesses and
their testimony; the particular aspects of GDMA's
billings that were of concern to the investigations;
the fact that the investigations had obtained numerous
email accounts, and the identity of those accounts; the
particulars about bank records and financial
information sought by the investigations; the reports
to prosecutors; and outlines of planned future
investigative activities.
49. Francis and Beliveau took steps to conceal and
prevent detection of their relationship, including
deleting emails, changing email accounts, creating
covert email accounts shared by Beliveau and Francis,
not transferring funds through the normal banking
channels, and using Skype calls and chat and text
messages to transmit information and discuss the
investigations.

25

Def.

initials~

50. The following events are non-exhaustive,

representative examples of the corrupt briber-bribee
relationship between Francis and Beliveau:

a. On or about March 4, 2011, Francis paid

for Beliveau to travel to Bangkok, stay two nights
in a luxury hotel, and receive the services of a
prostitute.

Francis also paid for that

prostitute's round-trip from the Philippines.

b. On or about March 12, 2012, FRANCIS and
Beliveau discussed by text message the ongoing
investigations in Japan, including their evaluation
of the assigned NCIS case agent and strategies for
placing blame for any wrongdoing on the
subcontractors.

Beliveau counseled,

~[N]ext

make

the subs look bad, divert attention so they look

dirty."
c. On or about the following dates,
Beliveau searched the NCIS database for reports
related to ongoing criminal investigations into
FRANCIS and GDMA in order to provide those reports
to FRANCIS:
1) December 2011
2) March 2012
3) May 2012
4) June 2012
5) August 2012
26

Def. initials

6) September 2012
7) November 2012

8) January 2013
9) April 2013
10) July 2013
11) August 2013
12) September 9, 2013.
d. On or about August 17, 2012, Beliveau
and FRANCIS discussed the ongoing investigations by
text messages, including the fact that statements
by co-conspirators were covertly recorded at the
GDMA office in Thailand.

Beliveau wrote, "I have

30 reports for u, not good, ur girl in [T]hailand

f[']d up and got caught on tape."

Later in the

exchange Beliveau specified, "[Country Manager PS]

to our source on tape."
! ."

FRANCIS replied, "No way

"What did she say."

warned you about this,

Beliveau answered "I

[I']ll send, u read."

e. In or about late November 2012, FRANCIS

paid for the airfare and hotel expenses for a
three-week trip for Beliveau to travel from
Virginia to Singapore, Thailand, the Philippines,
and Indonesia, and then back to Singapore and
Virginia.

During this trip, Beliveau hand-

delivered to FRANCIS, numerous law enforcement

sensitive investigative reports and provided

27

Def.

initials~

FRANCIS with advice and counsel on how to respond

to and thwart the investigations.
f. On or about December 22, 2012, the day
before Beliveau returned to the United States,
Francis gave Beliveau over $9,500 in cash.
51. The bribery offenses embodied in Count One and
Count Two involved more than one bribe.
52. The value of the benefit received by GDMA and
FRANCIS as a result of the bribery offenses embodied in
Count One and Count Two was at least more than
$7,000,000.00 but less than $20,000,000.00.
COUNT THREE - CONSPIRACY TO DEFRAUD THE UNITED STATES

53. Beginning in or about July 2009, and continuing

to in or about September 2013, FRANCIS knowingly and
intentionally combined, conspired, and agreed with
GDMA, GDMA employees, and others to defraud the United
States by obstructing the lawful functions of the
United States Department of the Navy through deceitful
and dishonest means, namely, by submitting or causing
to be submitted fraudulently inflated claims for
payment, and false and fraudulent documentation in
support of those claims for payment related to GDMA's
ship husbanding contracts with the U.S. Navy; and

G~

FRANCIS and their co-conspirators took overt acts in

28

Def. initials

furtherance of this conspiracy and to effect its

unlawful objects.
A. SHIP HUSBANDING CONTRACTS AWARDED 2011

54. In 2011, NAVSUP awarded GDMA three contracts to

provide ship husbanding services to U.S. Navy vessels
at ports throughout Southeast Asia (Region 2),
Australia and Pacific Isles (Region 3), and East Asia
(Region 4).
55. The Region 2 contract was structured with a
first-year base value of $25 million, with options to
extend the contract for up to four additional years,
for a total base value of over $125 million. The Region
2 contract provided for pricing of different ship
husbanding services as follows:
a. Fixed Price Items. For each port, GDMA and the
U.S. Navy agreed to fixed prices for various specified
services.
b. Incidentals. The contract also provided for
uincidentals," or items that fall within the general
scope of ship husbanding services but were not
enumerated as fixed price items. For these items, GDMA
was generally required to obtain at least two
competitive quotes for the service and provide those
quotes to the U.S. Navy. GDMA was allowed to submit its
own quote as one of the competitive market quotes, b~
29

Def. initials

Ll1/

in its quote, GDMA was required to disclose any profit

or markup. GDMA would also submit an Authorized
Government Representative Form ("AGR Form") in which
GDMA would recommend a particular source. After
receiving the quotes and the AGR Form, the U.S. Navy
would select which vendor to use for each Incidental.
c. Fuel. Fuel was a subtype of Incidentals. Under
the Region 2 contract, if GDMA arranged for the
acquisition of fuel, it was required to bill the U.S.
Navy for the fuel's actual costs, without markup; GDMA
received a separate fixed fee for its efforts in
arranging for the acquisition of the fuel.
d. Port Tariff Items. Under the Region 2 contract,
"Port Tariff Items" were ship husbanding services
provided by a bona fide Port Authority and charged at
"Port Tariff Rates" established and controlled by the
Port Authority. For any of these services rendered to
U.S. Navy vessels in port, GDMA was required to bill
the U.S. Navy for the actual costs paid to the Port
Authority, without markup.
56. In connection with the Region 2 contract, at
the conclusion of each port visit, GDMA submitted to
U.S. Navy personnel on the vessel a claim for payment - typically consisting of a series of invoices and
supporting documentation

for all the ship husbanding

services rendered to the vessel during th8 port

30

vis~

Def. initials

57. As part of this conspiracy, Francis and his coconspirators submitted and caused to be submitted to
the U.S. Navy fraudulent quotes for Incidentals,
purporting to be from prospective subcontractors, for
port visits in Thailand, Malaysia, Cambodia, Indonesia,
Philippines, Australia, and other countries.
58. As a part of this conspiracy, Francis and his
co-conspirators submitted and caused to be submitted to
the U.S. Navy fraudulent representations related to the
acquisition of fuel, including fraudulent
representations about the unavailability of the type of
fuel required by U.S. Navy vessels, as well as
fraudulent representations about the source and actual
cost of the fuel ultimately provided by GDMA to the
U.S. Navy vessels.
59. As a part of this conspiracy, Francis and his
co-conspirators submitted and caused to be submitted to
the U.S. Navy fraudulent representations related to
Port Tariff Items, including fraudulent representations
about the availability and actual cost of Port Tariff
Items at particular ports, fraudulent representations
about the true identity of the bona fide port
authority, and ultimately fraudulent invoices inflating

31

Def.

initials~

the costs of the Port Tariff Items rendered to each

U.S. Navy vessel.
60. To this end, Francis and his co-conspirators
created entirely sham companies and fraudulently
represented them to the U.S. Navy to be bona fide Port
Authorities, including Laem Thong East Services, Ltd.,
purporting to service the port of Laem Chabang,
Thailand, and Phuket International Cruise Terminal,
purporting to service the port of Phuket, Thailand. In
other ports, Francis and his co-conspirators falsely
represented to the U.S. Navy that certain GDMA
subcontractors were, in fact, the bona fide Port
Authority, including (1) Lumut, Malaysia: S.W. Maritime
SIB Lumut Ports; and (2)

Sepangar, Malaysia: MY.

Maritime Network (Sabah Ports) . Using these sham

entities, Francis and his co-conspirators submitted
fraudulent invoices to the U.S. Navy which inflated the
actual costs of the Port Tariff Items rendered to each
U.S. Navy vessel.
61. Further to this end, Francis and his coconspirators submitted and caused to be submitted
fraudulently inflated invoices purporting to be from
legitimate Port Authorities, including (1) Langkawi,
Malaysia: Star Cruises Langkawi Cruise Centre SND BHD;
(2) Jakarta, Indonesia: PT. Pelabuhan Indonesia II; ~
32

Def. initials

Bali, Indonesia: PT. Pelabuhan Indonesia III; (4) Ream,

Cambodia: Royal Cambodian Navy; and (5) Sihanoukville,
Cambodia: Kampuchea Shipping Agency & Brokers.
62. At the end of the port visit by a particular
U.S. Navy vessel, GDMA, FRANCIS and their coconspirators, submitted and caused to be submitted to
the U.S. Navy fraudulently inflated claims for the
purpose of obtaining payment for ship husbanding
services rendered to U.S. Navy vessels during port
visits, which claims included, depending on the port
visited and U.S. Navy vessel, fraudulently inflated
claims for payment related to Incidentals, Fuel, and
Port Tariff Items.
63. By some combination of the manner and means
described above in Paragraphs 57-61, GDMA, Francis, and
their co-conspirators defrauded the U.S. Navy in
connection with at least as many as hundreds of U.S .
Navy vessels' port visits throughout Asia and the
Pacific from at least September 2011 until September
2013.
B. SHXP HUSBANDING CONTRACT XN JAPAN 2009-2010

64. As an additional part of this conspiracy to

defraud the United States, GDMA, EA, and their coconspirators conspired to arrange kickbacks to GDMA ~
33

Def. initials

from GDMA's vendors in Japan (i.e. subcontractors for

particular ship husbanding services).

To implement

this scheme, GDMA, EA and their co-conspirators

obtained letterhead from several Japanese vendors and
used that letterhead to prepare fraudulently inflated
vendor invoices to the U.S. Navy. GDMA, EA and their
co-conspirators inflated these invoices to bill the
U.S. Navy for more money than the vendor would have
charged to provide the good or service. After the U.S.
Navy approved the invoices and paid the inflated
amounts to the Japanese vendors, EA required the
vendors to kick a portion of those inflated payments
back to GDMA. To do so, the co-conspirators issued GDMA
invoices to the vendors in the amount of the kickback,
and the vendors then paid the invoiced kickback amount
to GDMA.

After FRANCIS learned about this scheme, he

approved and continued to benefit from it.

65. By the manners and means described in Paragraph

64, GDMA, EA, and their co-conspirators defrauded the
U.S. Navy in connection with a wide variety of
husbanding services provided to nearly every U.S. Navy
vessel that came to port in Japan from July 2009 until
September 2010, including: USS Lake Erie, USS Blue
Ridge, USCGC Jarvis, USS John McCain; USS Stethem; USS
Cowpens; USS Pinckney; USS Rentz; USS Mount Rushmore;
USS Mustin; USS Fitzgerald; USS Curtis Wilbur; USS
34

nef. initials

~~

_V----=)'---

Guardian; USS Russell; USS Vandegrift; USS Denver; USS

Defender; USS Shiloh; USS Momsen, and many others.

66. The total actual loss to the U.S. Navy from the
conspiracy to defraud the United States described in
Count Three and in Paragraphs 54-64 above was at least
more than $20 million.

67. A substantial part of the conspiracy to defraud

the United States, as described in Count Three, was
committed from outside the United States and otherwise
involved sophisticated manners and means.

68. As to the conspiracy to defraud the United

States, as described in Count Three, Francis was the
organizer and leader of that criminal activity which
involved more than five participants, and was otherwise
extensive in its duration, reach, and magnitude.

69. Francis willfully obstructed and impeded, and

attempted to obstruct and impede, the administration of
justice with respect to the investigation and
prosecution of the conspiracy to defraud the United
States, as described in Count Three, and his
obstructive conduct related to that offense, and
relevant conduct.

35

Def. initials

FORFEITURE

70. The assets and substitute assets enumerated in

the Forfeiture Addendum constitute or are derived from
proceeds that defendant received as a result of the
conspiracy to commit bribery, bribery, and conspiracy
to defraud the United States, as described in the plea
agreement and in this Stipulated Statement of Facts.

##

36

Def. initials

/
DEFENDANT SATISFIED WITH COUNSEL

65. The defendant has consulted with counsel and is

satisfied with counsel's representation. This is the
defendant's independent opinion, and his counsel did
not advise him about what to say in this regard.
LAURA E. DUFFY
United States Attorney
DATED
MARK W. PLETCHER
ROBERT S. HUIE
Assistant U.S. Attorneys
WILLIAM J. STELLMACH
Acting Chief, Fraud Section
DATED

ytJ/ I )

w
Direct r, Procurement Fraud
BRIAN YOUNG

SNER, ESQ.
~~~O'CONNELL, ESQ.
Covington & Burling LLP
Counsel for Defendant

I SWEAR UNDER PENALTY OF PERJURY THAT THE FACTS IN THIS

STIPULATED STATEMENT OF FACTS ARE TRUE AND CORRECT.

DATED

1-4- IS ~GLENN
~
~
FRANCIS
Defendant

37

Def. initials