U.S. Navy moles helped Malaysian businessman bilk service, prosecutors say

By Craig Whitlock, WashPost, Published: November 7

For the past four years, Navy officials strongly suspected they were being ripped off by a major defense contractor that resupplied ships and submarines across Asia. The service launched several reviews and criminal investigations, but none produced hard evidence of wrongdoing.

The chief executive of the contractor, Glenn Defense Marine Asia, seemed to have a uncanny knack for swatting away auditors’ concerns. He even managed to persuade the Navy to give him more lucrative contracts, worth up to $200 million.

Now, federal prosecutors say they finally figured out how Leonard Glenn Francis — known in Navy circles as “Fat Leonard” for his imposing girth — was able to dodge scrutiny for so long. They have accused the Malaysian businessman of recruiting several high-placed moles in the Navy. The informants allegedly leaked sensitive information about contracts as well as closely guarded details about law-enforcement probes targeting Glenn Defense Marine, enabling the company to bilk the U.S. government out of more and more money as it fended off the investigations.

The case is shaping up as the biggest corruption scandal to hit the Navy in years. Two Navy commanders have been arrested — the most recent on Wednesday — and charged with feeding inside information to Francis, as has a senior agent with the Naval Criminal Investigative Service.

(More here.)