Francis plied the officers with things like foie gras terrine, duck leg confit, ox-tail soup, $2,000 boxes of cigars and $2,000 bottles of rare cognac, plus wild sex parties in fancy hotels.įor their part, the defendants allegedly worked in concert to help Francis and GDMA win and keep defense contracts to provide port services to U.S. The indictment is a veritable 78-page list of allegations in which Francis spent tens of thousands of dollars on bribing the defendants and the actions the officers took to reciprocate. Two defendants – Shedd and Herrera - are active duty the others are recently retired. The defendants face various charges including bribery, conspiracy to commit bribery, honest services fraud and obstruction of justice and making false statements to federal investigators when confronted about their actions. DeGuzman is also scheduled to appear before Judge Dembin today at 2 p.m. Commander Stephen Shedd and Chief Warrant Officer Robert Gorsuch. The other defendants are Captains David Newland, James Dolan, Donald Hornbeck and David Lausman Marine Corps Colonel Enrico DeGuzman Commander Mario Herrera Lt. Admiral Loveless was taken into custody at his home in Coronado and was expected to make his first appearance in federal court in San Diego at 2 p.m. The United States will seek their removal to face charges in San Diego. Navy officers were arrested early this morning in California, Texas, Florida, Colorado and Virginia. Navy Rear Admiral Bruce Loveless and David Newland, chief of staff to the Commander of the Navy’s Seventh Fleet, along with seven other high-ranking Navy officers are charged in a federal grand jury indictment with acting as a team of moles for a foreign defense contractor, trading military secrets and substantial influence for sex parties with prostitutes, extravagant dinners and luxury travel.Īccording to a federal grand jury indictment unsealed today, the Navy officers worked together to help Singapore-based defense contractor Leonard Glenn Francis and his company, Glenn Defense Marine Asia, pull off a colossal fraud that ultimately cost the Navy – and U.S. He serves on the editorial boards of Academy of Management Review and Organization Science.Assistant U.S. He is currently a Sloan Industry Studies Fellow. in Political Science from MIT, and an M.Chem from Oxford. Current projects explore how organizations balance internal promotions with external hiring, and why worker mobility has increased in recent years. A second focus of his research explores how workers build careers across organizations, working in different kinds of workplaces at different points in their careers. He has conducted detailed research on the contracting workforce in information technology, publishing papers on how those contractors are used within firms, on the effects of their relationships with staffing firms, and on who goes into contracting. Matthew Bidwell is Associate Professor of Management at The Wharton School, where his research examines new patterns in work and employment, focusing in particular on the causes and effects of more short-term, market-oriented employment relationships.
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