Nicola Smith
Thu, 21 December 2023
Leonard Glenn Francis has been extradited to the US in prisoner swap
The billionaire fraudster “Fat Leonard”, who masterminded one of the biggest corruption scandals in the Pentagon’s history, has been handed over to the US in a prisoner exchange.
Leonard Glenn Francis, 59, a Malaysian defence contractor, was swapped for a close ally of Nicolas Maduro, the Venezuelan president.
Dubbed Fat Leonard for his hefty 6ft 2in-frame, Francis fled from house arrest in San Diego last year and made an audacious escape to Caracas after pleading guilty to swindling the US navy out of $35 million (£27.7 million) and bribing naval officers with cash, sex and lavish parties to secure influence and work for his shipyards.
In the latest twist in his extraordinary tale, he was swapped in a prisoner deal with Venezuela for Alex Saab, a Colombian-born businessman long regarded by the US as a bagman for Mr Maduro, but considered by the Venezuelan leader as a diplomat illegally arrested on a US warrant.
The exchange has been seen as a bold move by the Biden administration to improve relations with the major oil-producing nation, but the US president justified it as the right decision to also bring home 10 other imprisoned Americans who had “lost far too much precious time with their loved ones”.
For Francis, however, it means he will once again face sentencing for his role in a bribery scandal that shook the US Pacific fleet.
Nicolas Maduro and Colombian businessman Alex Saab - Shutterstock
Francis, the owner of a ship-servicing company, was arrested in a San Diego hotel nearly a decade ago as part of a sting operation.
Court documents in his trial revealed lurid details of alcohol-fueled hedonistic parties with prostitutes in glitzy five-star hotels – all part of his reported strategy to lure officers into exchanging confidential military information that could be used to gain a competitive edge for his business.
During one multi-day session in 2008 at the presidential suite of the Shangri-La in Manila, the capital of the Philippines, room and alcohol charges exceeded $50,000 (£39,000), according to US justice department files.
Mr Francis was also accused of bribing navy officers with more than $500,000 (£394,000) in cash and items such as “Cuban cigars, Kobe beef and Spanish suckling pig” so they could steer business to his company, Glenn Defense Marine Asia Ltd.
Venezuelan President Maduro and Alex Saab, left, walk out of the Miraflores presidential palace - AP
Federal prosecutors alleged the company overcharged the navy by at least $35 million (£27.6 million) for servicing its ships in ports throughout the Pacific.
Several naval officials have been arrested and prosecuted over the case and Mr Francis was just three weeks away from being sentenced in September 2022 when he snipped off his GPS-operated ankle bracelet and escaped the gated community where he was under surveillance and house arrest.
The scandal caused reputational damage to the US navy at a time when Washington and its allies are boosting their regional presence in the Indo-Pacific to counter Chinese military influence.
It has also raised questions about the wider security implications of highly sensitive information that may have been leaked.
'Fat Leonard,' a fugitive now returning to the US, was behind one of the military's biggest scandals
LOLITA C. BALDOR AND JULIE WATSON
Updated Wed, December 20, 2023
FILE - This undated photo provided by the U.S. Marshals Service shows Leonard Francis. The felony convictions of four former Navy officers in one of the worst bribery cases in the maritime branch's history were vacated Wednesday, Dec. 20, 2023, following allegations of prosecutorial misconduct, the latest setback to the government's yearslong efforts in going after dozens of military officials tied to Leonard Francis, a defense contractor nicknamed Fat Leonard. (U.S. Marshals Service via AP, File)More
WASHINGTON (AP) — Returning convicted defense contractor Leonard “Fat Leonard” Francis to U.S. custody as part of the Venezuelan prisoner swap on Wednesday is the latest twist in a decade-long salacious saga and bribery scheme that swept up dozens of American Navy officers.
One of the biggest bribery investigations in U.S. military history led to the conviction and sentencing of nearly two dozen Navy officials, defense contractors and others on various fraud and corruption charges. And it was punctuated by Francis' daring escape last year, when he fled from house arrest at his San Diego home to South America.
An enigmatic figure who was 6-foot-3 and weighed 350 pounds at one time, Francis owned and operated his family’s ship servicing business, Singapore-based Glenn Defense Marine Asia Ltd. or GDMA, which supplied food, water and fuel to vessels. The Malaysian defense contractor was a key contact for U.S. Navy ships at ports across Asia for more than two decades. During that time he wooed naval officers with Kobe beef, expensive cigars, concert tickets and wild sex parties at luxury hotels from Thailand to the Philippines.
In exchange, the officers, including the first active-duty admiral to be convicted of a federal crime, concealed the scheme in which Francis would overcharge for supplying ships or charge for fake services at ports he controlled in Southeast Asia. The officers passed him classified information and even went so far as redirecting military vessels to ports that were lucrative for his Singapore-based ship servicing company.
In a federal sting, Francis was lured to San Diego on false pretenses and arrested at a hotel in September 2013. He pleaded guilty in 2015, admitting that he had offered more than $500,000 in cash bribes to Navy officials, defense contractors and others. Prosecutors say he bilked the Navy out of at least $35 million. As part of his plea deal, he cooperated with the investigation leading to the Navy convictions. He faced up to 25 years in prison.
While awaiting sentencing, Francis was hospitalized and treated for renal cancer and other medical issues. After leaving the hospital, he was allowed to stay out of jail at a rental home, on house arrest with a GPS ankle monitor and security gaurds.
But three weeks before his scheduled sentencing in September 2022, he snipped off his monitor and made a brazen escape, setting off an international search. Officials said he fled to Mexico, made his way to Cuba and eventually got to Venezuela.
He was arrested more than two weeks after his disappearance — caught before he boarded a flight at the Simon Bolivar International Airport outside Caracas. Venezuelan officials said he intended to reach Russia.
He has been in custody in Venezuela even since, and officials said he sought asylum there.
President Joe Biden, in a statement, referred to Leonard's “lead role in a brazen bribery and corruption case” and said Leonard was returning to the United States to “face justice for crimes he committed against the U.S. government and the American people.”
On Wednesday, the U.S. freed a close ally of Venezuelan President Nicolás Maduro in exchange for the release of 10 Americans imprisoned in Venezuela and for Francis' return. The deal represents the U.S. government’s boldest bid to improve relations with the major oil-producing nation and extract concessions from the self-proclaimed socialist leader. The Biden administration agreed to suspend some sanctions, following a commitment by Maduro and an opposition faction to work toward free and fair conditions for the 2024 presidential election.
Francis' escape wasn't the only prosecution stumble.
The cases were handled by the U.S. attorney’s office in an effort to be independent of the military justice system. But they have came under scrutiny.
Earlier this fall, the felony convictions of four former Navy officers were vacated following allegations of prosecutorial misconduct. U.S. District Judge Janis Sammartino agreed to allow them to plead guilty to a misdemeanor and pay a $100 fine each.
Last year Sammartino had ruled that the lead federal prosecutor in their case committed “flagrant misconduct” by withholding information from defense lawyers but she said at the time that it was not enough to dismiss the case. During a sentencing hearing in federal court in San Diego in early September, assistant U.S. Attorney Peter Ko, who was brought on after the trial last year, admitted to “serious issues” and asked the judge to vacate the officers’ felony convictions.
___
Watson reported from San Diego.
He escaped after bribing Navy officials. Now Venezuela is sending ‘Fat Leonard’ back
Max Greewood
Wed, December 20, 2023
It’s one of the largest bribery scandals in U.S. military history: a defense contractor bribing dozens of Navy officials with cash, prostitutes and luxury goods worth millions of dollars in order to win more contracts and overcharge the government for its services.
Now, the man at the center of that bribery scheme, a Malaysian businessman named Leonard Glenn Francis — better known as “Fat Leonard” — is heading back to the U.S. after fleeing the country ahead of his 2022 sentencing hearing, while under house arrest.
A senior U.S. official said on Wednesday that Francis — whose escape was widely viewed as a blunder by the U.S. government — would soon be flown back to the U.S. where he will be placed in a federal detention facility, describing Francis’ scheme as “one of the most brazen bribery conspiracies in the US Navy’s history.”
“The United States will now assure that he is held fully accountable for his time, as well as for his attempts to escape from justice,” the official told reporters.
READ MORE: Major prisoner swap between U.S. and Venezuela frees Maduro aide in exchange for Americans
What did he do?
According to charging documents, the bribery scheme began in 2004, when Francis and his company Glenn Defense Marine Asia began offering several Navy officials “cash, gifts, travel expenses, entertainment and the services of prostitutes.”
“In return for these things of value, the public officials provided Francis and GDMA with classified and other proprietary, internal U.S. Navy information, and used their positions and influence within the U.S. Navy to advocate for and advance the interests of Francis and GDMA, all as opportunities arose,” the charges read.
Francis and his company provided “husbanding” services for the U.S. Navy; services that involved coordinating, scheduling and procuring items and services for ships and submarines at port.
But Francis and GDMA repeatedly overcharged the Navy and submitted fraudulent claims, prosecutors say. In an effort to evade detection, Francis also bribed a Navy Criminal Investigative Service official in exchange for “law enforcement sensitive information,” as well as “advice and counsel about ongoing NCIS criminal investigations into the activities of Francis and GDMA.”
The scheme would last nearly a decade before Francis was arrested in a San Diego hotel room during a 2013 law enforcement raid. He pleaded guilty in 2015 to conspiracy to commit bribery, bribery and conspiracy to defraud the United States. Prosecutors say he scammed the Navy out of at least $35 million.
According to his plea agreement, Francis faced a sentence of up to 25 years in prison.
How did he end up in Venezuela?
Francis spent years in custody before being put under house arrest in San Diego under federal supervision as he awaited sentencing, due to failing health. But his case would take a turn in 2022, when he cut off his ankle-monitor and fled the U.S. just three weeks before his sentencing hearing, according to the U.S. Marshals Service, which, along with NCIS, issued a $40,000 reward for his capture at the time.
U.S. officials said that Francis initially fled to Mexico, then Cuba, before eventually arriving in Venezuela, where he was arrested before boarding a flight at the Simon Bolivar International Airport outside Caracas. He has been in Venezuelan custody ever since and, according to The Associated Press, requested asylum there.
While the U.S. and Venezuela have an extradition agreement, the complicated relationship between the two countries made his return to the U.S. uncertain.
That changed, however, when the U.S. agreed to free a close ally of Venezuelan President Nicolás Maduro — Colombian-born businessman Alex Saab — in exchange for the return of Francis and 10 Americans detailed by Maduro’s government.
LOLITA C. BALDOR AND JULIE WATSON
Updated Wed, December 20, 2023
FILE - This undated photo provided by the U.S. Marshals Service shows Leonard Francis. The felony convictions of four former Navy officers in one of the worst bribery cases in the maritime branch's history were vacated Wednesday, Dec. 20, 2023, following allegations of prosecutorial misconduct, the latest setback to the government's yearslong efforts in going after dozens of military officials tied to Leonard Francis, a defense contractor nicknamed Fat Leonard. (U.S. Marshals Service via AP, File)More
WASHINGTON (AP) — Returning convicted defense contractor Leonard “Fat Leonard” Francis to U.S. custody as part of the Venezuelan prisoner swap on Wednesday is the latest twist in a decade-long salacious saga and bribery scheme that swept up dozens of American Navy officers.
One of the biggest bribery investigations in U.S. military history led to the conviction and sentencing of nearly two dozen Navy officials, defense contractors and others on various fraud and corruption charges. And it was punctuated by Francis' daring escape last year, when he fled from house arrest at his San Diego home to South America.
An enigmatic figure who was 6-foot-3 and weighed 350 pounds at one time, Francis owned and operated his family’s ship servicing business, Singapore-based Glenn Defense Marine Asia Ltd. or GDMA, which supplied food, water and fuel to vessels. The Malaysian defense contractor was a key contact for U.S. Navy ships at ports across Asia for more than two decades. During that time he wooed naval officers with Kobe beef, expensive cigars, concert tickets and wild sex parties at luxury hotels from Thailand to the Philippines.
In exchange, the officers, including the first active-duty admiral to be convicted of a federal crime, concealed the scheme in which Francis would overcharge for supplying ships or charge for fake services at ports he controlled in Southeast Asia. The officers passed him classified information and even went so far as redirecting military vessels to ports that were lucrative for his Singapore-based ship servicing company.
In a federal sting, Francis was lured to San Diego on false pretenses and arrested at a hotel in September 2013. He pleaded guilty in 2015, admitting that he had offered more than $500,000 in cash bribes to Navy officials, defense contractors and others. Prosecutors say he bilked the Navy out of at least $35 million. As part of his plea deal, he cooperated with the investigation leading to the Navy convictions. He faced up to 25 years in prison.
While awaiting sentencing, Francis was hospitalized and treated for renal cancer and other medical issues. After leaving the hospital, he was allowed to stay out of jail at a rental home, on house arrest with a GPS ankle monitor and security gaurds.
But three weeks before his scheduled sentencing in September 2022, he snipped off his monitor and made a brazen escape, setting off an international search. Officials said he fled to Mexico, made his way to Cuba and eventually got to Venezuela.
He was arrested more than two weeks after his disappearance — caught before he boarded a flight at the Simon Bolivar International Airport outside Caracas. Venezuelan officials said he intended to reach Russia.
He has been in custody in Venezuela even since, and officials said he sought asylum there.
President Joe Biden, in a statement, referred to Leonard's “lead role in a brazen bribery and corruption case” and said Leonard was returning to the United States to “face justice for crimes he committed against the U.S. government and the American people.”
On Wednesday, the U.S. freed a close ally of Venezuelan President Nicolás Maduro in exchange for the release of 10 Americans imprisoned in Venezuela and for Francis' return. The deal represents the U.S. government’s boldest bid to improve relations with the major oil-producing nation and extract concessions from the self-proclaimed socialist leader. The Biden administration agreed to suspend some sanctions, following a commitment by Maduro and an opposition faction to work toward free and fair conditions for the 2024 presidential election.
Francis' escape wasn't the only prosecution stumble.
The cases were handled by the U.S. attorney’s office in an effort to be independent of the military justice system. But they have came under scrutiny.
Earlier this fall, the felony convictions of four former Navy officers were vacated following allegations of prosecutorial misconduct. U.S. District Judge Janis Sammartino agreed to allow them to plead guilty to a misdemeanor and pay a $100 fine each.
Last year Sammartino had ruled that the lead federal prosecutor in their case committed “flagrant misconduct” by withholding information from defense lawyers but she said at the time that it was not enough to dismiss the case. During a sentencing hearing in federal court in San Diego in early September, assistant U.S. Attorney Peter Ko, who was brought on after the trial last year, admitted to “serious issues” and asked the judge to vacate the officers’ felony convictions.
___
Watson reported from San Diego.
He escaped after bribing Navy officials. Now Venezuela is sending ‘Fat Leonard’ back
Max Greewood
Wed, December 20, 2023
It’s one of the largest bribery scandals in U.S. military history: a defense contractor bribing dozens of Navy officials with cash, prostitutes and luxury goods worth millions of dollars in order to win more contracts and overcharge the government for its services.
Now, the man at the center of that bribery scheme, a Malaysian businessman named Leonard Glenn Francis — better known as “Fat Leonard” — is heading back to the U.S. after fleeing the country ahead of his 2022 sentencing hearing, while under house arrest.
A senior U.S. official said on Wednesday that Francis — whose escape was widely viewed as a blunder by the U.S. government — would soon be flown back to the U.S. where he will be placed in a federal detention facility, describing Francis’ scheme as “one of the most brazen bribery conspiracies in the US Navy’s history.”
“The United States will now assure that he is held fully accountable for his time, as well as for his attempts to escape from justice,” the official told reporters.
READ MORE: Major prisoner swap between U.S. and Venezuela frees Maduro aide in exchange for Americans
What did he do?
According to charging documents, the bribery scheme began in 2004, when Francis and his company Glenn Defense Marine Asia began offering several Navy officials “cash, gifts, travel expenses, entertainment and the services of prostitutes.”
“In return for these things of value, the public officials provided Francis and GDMA with classified and other proprietary, internal U.S. Navy information, and used their positions and influence within the U.S. Navy to advocate for and advance the interests of Francis and GDMA, all as opportunities arose,” the charges read.
Francis and his company provided “husbanding” services for the U.S. Navy; services that involved coordinating, scheduling and procuring items and services for ships and submarines at port.
But Francis and GDMA repeatedly overcharged the Navy and submitted fraudulent claims, prosecutors say. In an effort to evade detection, Francis also bribed a Navy Criminal Investigative Service official in exchange for “law enforcement sensitive information,” as well as “advice and counsel about ongoing NCIS criminal investigations into the activities of Francis and GDMA.”
The scheme would last nearly a decade before Francis was arrested in a San Diego hotel room during a 2013 law enforcement raid. He pleaded guilty in 2015 to conspiracy to commit bribery, bribery and conspiracy to defraud the United States. Prosecutors say he scammed the Navy out of at least $35 million.
According to his plea agreement, Francis faced a sentence of up to 25 years in prison.
How did he end up in Venezuela?
Francis spent years in custody before being put under house arrest in San Diego under federal supervision as he awaited sentencing, due to failing health. But his case would take a turn in 2022, when he cut off his ankle-monitor and fled the U.S. just three weeks before his sentencing hearing, according to the U.S. Marshals Service, which, along with NCIS, issued a $40,000 reward for his capture at the time.
U.S. officials said that Francis initially fled to Mexico, then Cuba, before eventually arriving in Venezuela, where he was arrested before boarding a flight at the Simon Bolivar International Airport outside Caracas. He has been in Venezuelan custody ever since and, according to The Associated Press, requested asylum there.
While the U.S. and Venezuela have an extradition agreement, the complicated relationship between the two countries made his return to the U.S. uncertain.
That changed, however, when the U.S. agreed to free a close ally of Venezuelan President Nicolás Maduro — Colombian-born businessman Alex Saab — in exchange for the return of Francis and 10 Americans detailed by Maduro’s government.
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