A third senior U.S. Navy officer has been arrested in a widening bribery investigation and overbilling probe involving a Singapore company.
Navy Commander Jose Luis Sanchez was arrested Wednesday in Florida, the DOJ said. He was charged with accepting prostitutes, luxury travel, and $100,000 in exchange for classified and internal Navy information.
This overbilling scheme was allegedly orchestrated by Singapore-based defense contractor Glenn Defense Marine Asia. The company has contracts for refueling and supplying U.S. fleet ships in Asian ports.
GDMA chief executive Leonard Glenn Francis and another company official were arrested in September in San Diego, after federal investigators lured them to the United States by arranging a sham meeting with Navy officials, VOA News said.
Prosecutors allege Sanchez took bribes in return for providing sensitive information on ship deployments. He’s also is accused of recommending refuel and resupply calls at Asia ports serviced by Glenn Defense Marine.
The Washington Post broke the story last month. It said, ‘The unfolding investigation is shaping up as the biggest fraud case in years for the Navy.’
A senior agent for the Naval Criminal Investigative Service was arrested last month.
GDMA’s boss was charged with providing the NCIS agent travel, entertainment, prostitutes and other favors in return for information about an ongoing NCIS investigation into his company.
Another Navy commander who captained a U.S. destroyer was arrested earlier, and a U.S. commander in Japan was relieved of his ship’s command last month in connection with the investigation.
GDMA has reportedly earned more than $200 million through U.S. Navy contacts over the past 25 years.
Richard L. Cassin is the publisher and editor of the FCPA Blog. He can be contacted here.