Navy Bribery Ring Is Unraveling

SAN DIEGO (CN) - A fourth Navy official has been charged with taking bribes for giving a Singapore-based defense contractor classified and sensitive information on the Navy's movements.

Petty Officer First Class Dan Layug, 27, is accused of handing over internal Navy shipping schedules to defense contractor Glenn Defense Marine Asia in exchange for cash, stays in luxury Asian hotels, and electronics.

Federal authorities arrested Layug on April 16 in San Diego. The next day a federal judge set bail at $100,000 and ordered Layug to wear a GPS monitor should he be released. If convicted, Layug faces up to 5 years in prison.

According to an unsealed complaint for conspiracy to commit bribery, Layug had access to the confidential information as a logistics specialist at a Navy base in Yokosuka, Japan.

In return for shipping schedules, Glenn Defense paid Layug bribes of $1,000, sometimes delivering the payments in envelopes full of cash, federal prosecutors said.

In addition, Layug asked for an iPad 3 and provided to the contractor a list of electronics, including a camera, iPhone, Samsung cell phone and iPad Mini he would like, prosecutors said.

After a Glenn Defense's vice president of global operations sent Layug the items on his wish list, Layug allegedly wrote in an email: "the camera is awesome bro! Thanks a lot! Been a while since I had a new gadget!"

Prosecutors say Layug tried to cover his tracks by opening a bank account in his infant daughter's name and using the code word "golf schedules" to describe the ship schedules.

At the center of the scandal is Glenn Defense CEO Leonard Francis, 49, of Malaysia.

Francis, also known as "Fat Leonard," was charged in September 2013 with conspiracy to bribe officials and of overbilling the Navy by at least $20 million for port services.

Glenn Defense executive Alex Wisidagama, 40, of Singapore, pleaded guilty in March to defrauding the Navy.

Glenn Defense services include security and transport, tugboats, trash and waste disposal under government contracts worth hundreds of millions of dollars. Francis was accused of bribing officials for advance details of the Navy's movements and having ships steered to ports where he offered services.

Commander Michael Misiewicz, 46, and Commander Jose Luis Sanchez, 41 were charged with taking bribes from Glenn Defense for shipping schedules. Both men have pleaded not guilty.

Last year, Naval Criminal Investigative Service agent John Beliveau, 44, pleaded guilty to accepting bribes to tip off Francis as the government probed the contractor, prosecutors said.

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