Fugitive in Navy bribery case caught in Venezuela

SAN DIEGO (AP) — A Malaysian defense contractor nicknamed "Fat Leonard" who orchestrated one of the largest bribery scandals in U.S. military history has been arrested in Venezuela after fleeing before his sentencing, authorities said Wednesday.

The international manhunt for Leonard Glenn Francis ended with his arrest by Venezuelan authorities Tuesday morning at the Caracas airport as he was about to board an airplane for another country, the U.S. Marshals Service said.

Francis had traveled to Venezuela from Mexico with a stopover in Cuba, Interpol Venezuela Director General Carlos

Garate Rondon said in a statement posted on Instagram. Francis was headed to Russia and was arrested at the main international airport in Caracas, the agency said.

The arrest came on the eve of his scheduled sentencing in a federal court in California for a bribery scheme that lasted more than a decade and involved dozens of U.S. Navy officers.

There was no immediate word on when he might be extradited to the United States.

At the sentencing hearing Thursday, U.S. District Court Judge Janis Sammartino announced to the court that Francis was in custody in Venezuela and that a "no bail arrest warrant" had been issued.

"This turn of events raises several issues, and obviously will have an impact on other cases," she said. A sentencing hearing for four Navy officers who went to trial in the case and were found guilty is set for October.

Prosecutors asked the court to note that Francis failed to appear at his sentencing hearing as ordered, while defense attorneys notified the court that they would be filing a motion severing their ties with Francis due to an "irreparable break down of the attorney-client relationship."

Sammartino set a Dec. 14 status hearing for Francis with the caveat that all parties could meet sooner depending on how events unfold.

"I believe that's all we can accomplish this morning," Sammartino said.

The U.S. government faces an uphill challenge returning the fugitive back to American soil. The U.S. government doesn't recognize Nicolas Maduro's socialist government, has no embassy in the country and has imposed crushing sanctions on the country that has further embittered relations. Law enforcement cooperation between the two countries is rare.

Francis was under home arrest in San Diego when he cut off his GPS ankle bracelet and escaped on Sept. 4. Ten U.S. agencies searched for Francis and authorities issued a $40,000 reward for his arrest.

U.S. authorities also issued a red notice, which asks law enforcement worldwide to provisionally arrest someone with the possibility of extradition. Malaysia and Singapore both have extradition agreements with the United States.

Francis pleaded guilty in 2015 to offering prostitution services, luxury hotels, cigars, gourmet meals and more than $500,000 in bribes to Navy officials and others to help his Singapore-based ship servicing company, Glenn Defense Marine Asia Ltd. or GDMA. Prosecutors said the company overcharged the Navy by at least $35 million for servicing ships, many of which were routed to ports he controlled in the Pacific.