Retired Navy admiral among indicted in bribery case

SAN DIEGO (AP) — A retired Navy admiral and eight other current and former military officers were bribed with sex, trips and other lavish perks, according to an indictment unsealed Tuesday in a burgeoning scandal involving a Malaysian defense contractor nicknamed “Fat Leonard.”

Retired Adm. Bruce Loveless, 53, and the others were accused of accepting the services of prostitutes and other bribes from Leonard Francis in exchange for classified information that helped his company, Glenn Defense Marine Asia.

The indictment says Francis once rented the MacArthur Suite at the Manila Hotel, where million — largely by overcharging for his company’s services supplying Navy ships in the Pacific with food, water, fuel and other necessities.

Navy officers provided classified information to Francis that helped him beat out the competition and in some instances commanders steered ships to ports in the Pacific where his company could charge fake tariffs and fees, prosecutors said.

It was the latest indictment in the three-year-old case that has produced charges against more than 20 former or current Navy officials and marks one of the worst Navy corruption scandals in history. Loveless is the second admiral charged in the case. It is extremely rare for an admiral to face criminal proceedings.

Adm. John Richardson, the Navy’s top officer, vowed to repair damage caused by the scandal.

“This behavior is inconsistent with our standards and the expectations the nation has for us as military professionals,” he said. “It damages the trust that the nation places in us, and is an embarrassment to the Navy.”

Loveless made no substantive comments during a brief hearing hours after his arrest at his Coronado home near San Diego. Magistrate Judge Mitchell Dembin entered a not guilty plea on his behalf and ordered him released without bail.