Prison for Navy officer involved in Fat Leonard affair

JANUARY 29, 2015 — U.S. Navy Lieutenant Commander Todd Dale Malaki was sentenced today to 40 months in prison for accepting cash, hotel expenses and the services of a prostitute from foreign defense contractor Glenn Defense Marine Asia (GDMA) in exchange for classified U.S. Navy ship and submarine schedules and other internal Navy information.

It is the latest development in the bribery and corruption scandal, known in Navy circles as the "Fat Leonard" affair— a reference to Glenn Marine founder, Leonard Glenn Francis.

Malaki's sentence was handed down one day after U.S. Navy Commander Michael Vannak Khem Misiewicz, 48, of San Diego, pleaded guilty before U.S. Magistrate Judge Jan Adler of the Southern District of California to bribery charges, admitting that he accepted cash, gifts, travel expenses, entertainment and the services of prostitutes from Glenn Defense Marine Asia (GDMA).  His sentencing is scheduled for April 29, 2016, before U.S. District Judge Janis L. Sammartino of the Southern District of California.

In April 2015, Todd Dale Malaki, 44, pleaded guilty to one count of conspiracy to commit bribery and admitted that in 2006, while he was working as a supply officer for the U.S. Navy’s Seventh Fleet, he began a corrupt relationship with Leonard Glenn Francis, the former president and CEO of GDMA, a company that provided port services to U.S. Navy ships and submarines throughout the Pacific.

In addition to his prison sentence, U.S. District Judge Janis L. Sammartino of the Southern District of California ordered Malaki to pay a $15,000 fine and $15,000 in restitution to the Navy.

As part of the scheme, says the Department of Justice, Malaki provided Francis with classified U.S. Navy ship schedules and proprietary invoicing information about GDMA’s competitors in exchange for luxury hotel stays in Singapore, Hong Kong and the island of Tonga, as well as envelopes of cash, entertainment expenses and the services of a prostitute. Malaki admitted that the total value of the benefits he received from Francis was approximately $15,000.

To date, 10 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including Malaki, Commander Michael Vannak Khem Misiewicz, Captain Daniel Dusek, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug.

Former Department of Defense (DoD) civilian employee Paul Simpkins awaits trial. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; the others await sentencing.

The NCIS, the DCIS and the Defense Contract Audit Agency are conducting the ongoing investigation.

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