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New U.S. Navy arrest in Glenn Marine bribe case

A sixth defendant was charged in federal court Thursday with bribery involving Singapore-based defense contractor Glenn Defense Marine Asia (GDMA).

U.S. Navy Petty Officer First Class Dan Layug was arrested Wednesday in San Diego. He’s accused of taking cash, luxury travel and consumer electronics. 

The DOJ said in exchange for the bribes, Layug provided classified ship schedules and other sensitive Navy information to GDMA.

GDMA and its CEO, Leonard Glenn Francis, are accused of overbilling the Navy at least $20 million, prosecutors said.

Layug served as a logistics specialist at a U.S. facility in Yokosuka, Japan.

In May 2012, GDMA’s vice president of global operations allegedly told a company accountant that “at the end of each month, we will be providing an allowance to Mr. Dan Layug. Total of US $1,000. You may pay him the equivalent in Yen. He will come by the office at the end of each month to see you.”

The complaint said Layug also asked for a “bucket list” of electronics from GDMA, including a high-end camera, iPhone 5, iPad 3, Samsung S4 cell phone and an iPad Mini.

Prosecutors said Layug was also given rooms at luxury hotels throughout Asia for him and his friends.

Layug tried to hide his illicit relationship with GDMA, according to the complaint. He described the classified ship-movement information as “golf schedules” and opened a bank account under the name of his infant daughter, into which he deposited part of his “allowance.”

Layug faces up to five years in prison for conspiracy to commit bribery.

Five others have been implicated in the scandal, including Francis, who was charged with conspiring to bribe Navy officials.

Last month, Francis’ cousin and company manager Alex Wisdagama pleaded guilty to defrauding the U.S. Navy.

Two senior Navy officials, Commander Michael Vannak Khem Misiewicz and Commander Jose Luis Sanchez have been charged with bribery conspiracy. Both have pleaded not guilty.

Naval Criminal Investigative Service Supervisory Special Agent John Bertrand Beliveau II pleaded guilty in December to accepting bribes in exchange for tipping Francis off to the status of the government’s investigation into GDMA.

The DOJ’s April 17, 2014 release is here.


Julie DiMauro is the executive editor of FCPA Blog and can be reached here.

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