JammedUp News

News

Eight Navy officials indicted in massive corruption scandal involving raunchy booze-filled hotel sex parties

March 15, 2017  |  Posted by: Francesca Falzarano
Eight Navy officials indicted in massive corruption scandal involving raunchy booze-filled hotel sex parties

Are you in a legal jam? Find a Lawyer, Bail Bondsman or Private Investigator on JammedUp.

Nine Navy officials are accused of throwing a crazy $50,000 party with a rotating carousel of prostitutes and an orgy in a massive federal corruption probe.

The Justice Department revealed that the inappropriate behavior is part of a massive bribery case referred to as “Fat Leonard,” where millions of dollars were swindled from the U.S. military.

The high-ranking Navy officials, which include Rear Adm. Bruce Loveless, a retired Navy intelligence officer, accepted bribes in the form of gifts, prostitutes and fancy hotel stays from 2006 to 2014.

In one case, some of the men had a $50,000 “multi-day party with a rotating carousel of prostitutes,” and emptied out the hotel’s stock of Dom Perignon.

Capt. David Newland (left) and Lt. Cmdr. Stephen Shedd (right) were indicted in the scandal

In another incident, they had an orgy using General Douglas MacArthur’s memorabilia as a sex toy.

In exchange for their good time, the military men would provide confidential information to Leonard Glenn Francis – aka Fat Leonard – a Singapore-based defense contractor who pleaded guilty to using the information to defraud the military out of millions of dollars.

The other Navy officials who were indicted were Captain Donald Hornbeck, Captain David Lausman, Marine Colonel Enrico de Guzman, warrant officer Robert Gorsuch.

The eight Navy officers indicted- including Admiral Bruce Loveless (left) – of taking part in a massive bribery scandal known as ‘Fat Leonard’ (right), which swindled millions of dollars from the US military, it was revealed on Tuesday

All of them are said to be retired. Active duty Captain James Dolan and Commander Stephen Shedd were also identified in the indictment.

The case accuses the officers of participating in the bribes while based in Japan.

In May 2008, Francis paid for the cost for several of the officers, including Loveless, Hornbeck, Dolan, Lausman and Shedd, to stay in the presidential suite at the Shangri-La Hotel.

They reportedly accumulated a bill of $50,000, which did not include the price of the prostitutes.

Capt. James R. Dolan (left) and Capt. Donald Hornbeck (right) were also indicted in the scandal. The military men would take the gifts and then give Francis classified military information

Days after, the men contacted Francis to thank him for their great time.

In 2007, the men took part in an orgy where “historical memorabilia related to General Douglas MacArthur were used by the participants in sexual acts” in the MacArthur Suite of the Manila Hotel.

Francis also gifted cash for the men’s family’s travel costs, as some officials brought their wives on the expensive trips across Asia.

The men are accused of accepting lavish gifts such as Cuban cigars and expensive wine that Francis gave them, and in turn feeding him fleet schedules, so that he could use the knowledge to cheat the military.

Captain David Lausman is accused of going to a $50,000 ‘multi-day party with a rotating carousel of prostitutes’, emptying out the hotel’s supply of Dom Perignon

The eight Navy officials and one Marine were the latest indictments in the bribery conspiracy that now has charged 27 charged. There are approximately 200 individuals under investigation.

Francis pleaded guilty to fraud and corruption in 2015, but the probe has steadily become the largest fraud case in the history of the Navy.

The 51-year-old Malaysian had permeated the Naval ranks so deeply that his company had no worries of getting caught and were given rafts of leaked confidential contracting information.

They even provided him with law enforcement investigations about his company.

In the bribe case, the men are said to have stayed at the MacArthur (pictured) suite at the Manila Hotel, where the general stayed as a military advisor to the Philippines, and used his memorabilia in sexual acts

After he had been arrested, four Naval officers, an enlisted sailor and a senior agent with the Naval Criminal Investigation Service pleaded guilty.

Acting Assistant Attorney General Blanco told Fox News:

“The defendants in this indictment were entrusted with the responsibility of the operations of the U.S. Navy’s Seventh Fleet, which is tasked with protecting our nation by guarding an area that spanned from Russia to Southeast Asia and the Indian Ocean. With this honor and responsibility came a duty to make decisions based on the interests of the Navy and the 40,000 Sailors and Marines under their care who put their lives at risk to keep us secure and free. Unfortunately, these defendants have sold their honor and responsibility in exchange for personal enrichment.”

Get the latest news from the world of crime