A federal jury in San Diego, California, on Wednesday handed guilty verdicts to four of the five former Navy officials who were accused of exchanging military secrets for sex parties with prostitutes, opulent dinners, and travel expenses covered by Leonard "Fat Leonard" Francis, a defense contractor, Courthouse News reported.
After a four-month trial, and a decadelong investigation into what was described as the Navy's biggest corruption scandal, 12 jurors unanimously determined that Captains David Newland, James Dolan and David Lausman, as well as Commander Mario Herrera, had engaged in a conspiracy to exchange Navy ship schedules for the Navy's Seventh Fleet with Francis, who had already pleaded guilty to bribery and fraud charges earlier.
The jurors, however, were unable to reach a verdict on the charges against the highest-ranking defendant, US Navy Rear Admiral Bruce Loveless, leading one of his attorneys to request that US District Judge Janis Sammartino enter a judgment clearing him of the charges.
Mark Pletcher, an assistant US attorney, reportedly objected to the move to enter judgment. Sammartino suggested the parties provide more background information on the matter.
“These are not routine motions, folks, and the issues in this case have never been routine,” Sammartino said.
The intelligence officer "tagged along with his friends" to parties hosted by Francis, Loveless' attorney Ivy Wang reportedly said, adding that the reason the intelligence officer didn't attend was "because of the women at these parties." The lawyer, however, supposedly neither confirmed or denied reports that Loveless accepted prostitutes paid for by Francis.
Francis, who acknowledged soliciting $500,000 in bribes from Navy officers in 2015, has been at the center of the case. In return for the money and favors, the officers gave him access to sensitive intelligence and even directed military ships to ports that would be profitable for his Singapore-based ship repair business, according to the San Diego Union-Tribune report.
Francis reportedly gave the military brass lavish hotel accommodations, sex parties with prostitutes, and expensive lunches with tabs of up to $20,000.
Initially, nine people were reportedly charged in the case. Prior to the trial, four of the defendants entered guilty pleas. On July 21, there will be a status conference following the trial. And on October 11, the defendants will be sentenced.
The Navy's Seventh Fleet, which is stationed in the Pacific and has more than 70 ships, 200 planes, and 40,000 sailors and Marines, is its largest fleet.