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Petty officer charged in 'Fat Leonard' bribery scandal

Apr. 17, 2014 - 06:00AM   |  
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SAN DIEGO — A fourth member of the Navy has been charged with conspiracy to commit bribery in a multimillion-dollar scheme involving a Singapore-based defense contractor accused of providing cash, vacations, electronics and prostitutes in exchange for classified information.

“The camera is awesome bro!” Japan-based Petty Officer Dan Layug wrote in an email to the vice president of a military contractor that is included in a complaint unsealed Thursday. “Thanks a lot! Been a while since I had a new gadget!”

In another email, Layug asks, “What are the chances of getting the new iPad 3?” according to the complaint.

Layug made his initial court appearance Thursday, a day after he was arrested in San Diego. A judge set bail at $100,000 and ordered GPS monitoring if Layug is released, according to a U.S. attorney’s statement. He hasn’t entered a plea, and messages seeking comment from his attorney were not immediately returned.

Layug, a 27-year-old logistics specialist at a U.S. Navy facility in Yokosuka, Japan, revealed classified ship schedules and other sensitive U.S. Navy information in exchange for bribes from employees of a military contracting company, the complaint said.

In addition to the latest consumer electronics, Layug received a monthly “allowance” in the form of an envelope full of cash, the complaint said.

Three Navy officers were previously arrested in the case, which has also led to a congressional probe.

It centers on Leonard Glenn Francis, known in military circles as “Fat Leonard,” and his contracting company Glenn Defense Marine Asia Ltd., or GDMA, which has serviced Navy ships for 25 years.

Francis was arrested in September and has pleaded not guilty in the case that also alleges GDMA overbilled the Navy by at least $20 million for port services since 2009.

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