U.S. Navy captain sentenced to 46 months in prison for bribery scandal
SAN DIEGO (KUSI) – 3/25/2016 – U.S. Navy Capt. Daniel Dusek was sentenced to 46 months in federal prison Friday during a sentencing hearing on charges related to a bribery scandal that led to legal action against 10 different people. Dusek is the highest-ranked military official to be charged in the corruption ring. The investigation was centered around Singapore-based defense contractor Glenn Defense Marine Asia, which provided port services to U.S. Navy ships in the Asia Pacific region.
Dusek was also ordered to pay $70,000 in fines and $30,000 in restitution. His final sentencing added two months to the 44 months the U.S. Attorney’s Office recommended for his crimes. He will be moved to federal prison in Oregon.
“It’s truly unimaginable to the court that someone in your position with the United States Navy would sell out based on what was provided to you – hotel rooms, entertainment and the services of prostitutes,” Judge Sammartino told Dusek during sentencing.
"Captain Dusek’s betrayal is the most distressing because the Navy placed so much trust, power and authority in his hands,” said U.S. Attorney Laura Duffy. “This is a fitting sentence for a man who was so valuable that his conspirators labeled him their ‘Golden Asset.’”
1/29/2016 – A U.S. Navy officer was sentenced in federal court Friday to 40 months in prison for accepting cash, hotel expenses and the services of a prostitute in return for providing classified U.S. Navy ship and submarines schedules and other internal Navy information to a foreign defense contractor.
Lt. Cmdr. Todd Dale Malaki, 44, pleaded guilty last year to one count of conspiracy to commit bribery.
As part of his guilty plea, Malaki admitted that in 2006, while he was working as a supply officer for the U.S. Navy’s Seventh Fleet, he began a corrupt relationship with “Fat Leonard” Glenn Francis, the former president and CEO of Glenn Defense Marine Asia, a company that provided services to the U.S. Navy.
During Friday’s sentencing hearing, U.S. District Judge Janis Sammartino noted that the 40-month prison sentence was warranted because Malaki’s conduct was not a momentary lapse of judgment but long-term corruption that spanned more than seven years.
The judge described Malaki’s case as "one of the most serious offenses the court has seen in its tenure in the Southern District of California.”
In addition to the prison sentence, the judge ordered Malaki to pay a $15,000 fine and pay $15,000 in restitution to the Navy. The defendant was ordered to report for custody on May 2.
Malaki is the second defendant to be sentenced in the investigation of corruption and fraud in the U.S. Navy. Last week, U.S. Navy Petty Officer First Class Daniel Layug was sentenced to 27 months in prison for conspiracy to commit bribery.
To date, 10 people have been charged in connection with the scheme; of those, nine have pleaded guilty, including Malaki, Cmdr. Michael Vannak Khem Misiewicz, Capt. Daniel Dusek, NCIS Special Agent John Beliveau, Cmdr. Jose Luis Sanchez and Layug, as well as GDMA executives Francis, Alex Wisidagama and Edmond Aruffo. Former Department of Defense civilian employee Paul Simpkins is awaiting trial.
1/21/2016 – A U.S. Navy petty officer accused of stealing cash and consumer electronics from a foreign defense contractor in exchange for classified Navy information was sentenced Thursday in San Diego to 27 months in federal prison.
Daniel Layug, 27, pleaded guilty in May 2014 for his role in the bribery scandal involving Singapore-based defense contractor Glenn Defense Marine Asia, which for decades provided port services to U.S. Navy ships in the Asia Pacific region.
Layug told U.S. District Judge Janis Sammartino that he was willing to accept whatever punishment she handed down. Layug apologized to his family and especially his father, who was also in the military.
"I let my ego and my greed take over me,” Layug told Sammartino.
Rear Adm. Jonathan Yuen, Chief of Navy Supply Corps, told the judge that Layug’s actions represented a "fundamental betrayal of everything we stand for.”
Sammartino told Layug that he breached and violated his position of trust.
"You put the Navy at risk. You put your colleagues at risk. And you put our country at risk,” the judge said. "I think our security and safety were all at risk.”
Assistant U.S. Attorney Mark Pletcher said Layug is the first of nine charged defendants to be sentenced in the case. Seven defendants have pleaded guilty and two are awaiting trial.
According to court documents, GDMA owner and CEO "Fat Leonard” Francis and his cousin, GDMA executive Alex Wisidagama, enlisted the clandestine assistance of Navy personnel — including Cmdr. Michael Vannak Khem Misiewicz, Cmdr. Jose Luis Sanchez, Naval Criminal Investigative Service Special Agent John Beliveau and Layug — to provide classified ship schedules and other sensitive information about the ongoing criminal investigation.
Layug admitted that he accepted a $1,000-a-month allowance from GDMA, plus luxury hotel stays for himself and others in Malaysia, Singapore, Indonesia, Hong Kong and Thailand.
He also admitted asking GDMA for numerous electronic devices, including a iPad 3, Nikon digital camera, Blackberry, VAIO computer, PSP gaming unit and Wii gaming unit.
"In return for a monthly cash allowance, the latest gadgets and luxury accommodations for himself and his friends, the defendant betrayed the country that had given him every opportunity,” said U.S. Attorney Laura Duffy.
"Layug essentially sold his honor for an iPad 3, and in doing so he put the U.S. Navy at risk of embarrassment, exploitation, attack or worse,” she said. "Today’s sentence is the first of many that we hope will remind others to resist temptation.”