Navy Captain gets prison term for Fat Leonard affair role

Navy Captain Daniel Dusek will get a change of uniform June 15 when he reports to the U.S. Bureau of Prisons Navy Captain Daniel Dusek will get a change of uniform June 15 when he reports to the U.S. Bureau of Prisons

MARCH 28, 2016 — U.S. Navy Capt. Daniel Dusek, 49, will get a change of uniform June 15. That's when he must report to the U.S. Bureau of Prisons to start serving a 46 months sentence, imposed Friday, for giving classified information to a foreign defense contractor in exchange for prostitutes, luxury travel and other gifts.

Dusek is the highest-ranking official thus far charged in the massive bribery scandal known in Navy circles as the Fat Leonard affair.

In addition to imposing the prison sentence, U.S. District Judge Janis L. Sammartino of the Southern District of California, also ordered Dusek to pay a $70,000 fine and $30,000 in restitution to the Navy.

Dusek, 49, pleaded guilty in January 2015 to a single count of conspiracy to commit bribery. Dusek admitted that he used his influence as Deputy Director of Operations for the Seventh Fleet, headquartered in Yokosuka, Japan, and later as executive officer of the USS Essex and the commanding officer of the USS Bonhomme Richard, to benefit Leonard Glenn Francis ["Fat Leonard"] and his company, Glenn Defense Marine Asia (GDMA).

For decades, GDMA provided port services to U.S. Navy ships and in return, Francis plied Dusek with meals, alcohol, entertainment, gifts, dozens of nights and incidentals at luxury hotels and the services of prostitutes, Dusek admitted.

Underscoring his importance to the conspiracy, says the Department of Justice, in an email to one of his employees, Francis wrote: "(Dusek) is a golden asset to drive the big decks (aircraft carriers) into our fat revenue GDMA ports."

According to Dusek's plea agreement, he hand-delivered Navy ship schedules to the GDMA office in Japan or emailed them directly to Francis or a GDMA employee on dozens of occasions, each time taking steps to avoid detection by law enforcement or U.S. Navy personnel.

The Department of Justice says that Dusek was lavishly rewarded for his efforts to help GDMA. For example, according to the plea agreement, GDMA paid for a hotel for Dusek and his family at the Marriott Waikiki in Hawaii on July 19, 2010, and on Aug. 5, 2010, GDMA paid for a hotel room for Dusek at the Shangri-La in Makati, Philippines, and provided him with the services of a prostitute.

Soon after, Francis asked Dusek to exercise his influence on GDMA's behalf by steering the aircraft carrier USS Abraham Lincoln and its associated strike group to Port Klang, Malaysia (PKCC) – a port terminal owned by Francis. Dusek replied in a series of emails to GDMA in late August 2010 that he would make it happen.

"Good discussion with N00 (Admiral) today and convince him that PKCC is the better choice," Dusek wrote to Francis on Aug. 21, 2010.
Three days later, Dusek reported to Francis that he had "everyone in agreement that the next CSG (Carrier Strike Group) through the AOR (area of responsibility) will stop at PKCC. Dates will be 08-12 Oct."

The port visit cost the United States approximately $1.6 million.

On Sept. 17, 2013, when Dusek learned that Francis and Navy personnel had been arrested, he deleted the contents of his email accounts in an effort to avoid detection by law enforcement.

To date, 10 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including Dusek, Lieutenant Commander Todd Malaki, Commander Michael Vannak Khem Misiewicz, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug. Former Department of Defense civilian employee Paul Simpkins awaits trial. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; and on March 18, 2016, Alex Wisidagama, a former GDMA employee, was sentenced to 63 months and $34.8 million in restitution to the Navy; the others await sentencing.

The ongoing investigation is being conducted by NCIS, DCIS and DCAA. The case is being prosecuted by Assistant Chief Brian R. Young of the Criminal Division's Fraud Section and Assistant U.S. Attorney Mark W. Pletcher of the Southern District of California.

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