Yet another Navy officer had pled guilty to bribery in the “Fat Leonard” Glenn Francis U.S. Navy bribery and fraud case.
The U.S. Attorney’s Office Southern District of California released the below information:
SAN DIEGO – U.S. Navy Commander Stephen
Shedd pleaded guilty in federal court today to bribery charges, admitting that
he and eight other indicted leaders of the U.S. Navy’s Seventh Fleet received
more than $250,000 in meals, entertainment, travel and hotel expenses, gifts,
cash and the services of prostitutes from foreign defense contractor Leonard
Glenn Francis.
Shedd is one of nine members of the
Seventh Fleet indicted by a federal grand jury in March 2017 for conspiring
with and receiving bribes from Francis, the owner and CEO of Singapore-based
Glenn Defense Marine Asia, which provided services for U.S. Navy ships in port,
including tugboats; fenders; security; food; fuel; water; trash and waste
removal; and transportation.
Shedd is the third of the Seventh Fleet
defendants to plead guilty. The trial of the remaining defendants is scheduled
to begin on February 28, 2022. The remaining six defendants - who are accused
of conspiring to trade military secrets and substantial influence for sex
parties with prostitutes and luxurious dinners and travel, among other lavish
things of value - include U.S. Navy Rear Admiral Bruce Loveless; Captains David
Newland, James Dolan, David Lausman and Donald Hornbeck; and Commander Mario
Herrera.
The overarching fraud and bribery
investigation has resulted in federal criminal charges against 34 U.S. Navy
officials, defense contractors and the GDMA corporation. So far, 28 of those
have pleaded guilty, admitting collectively that they accepted millions of
dollars in luxury travel and accommodations, meals, lavish gifts, or services
of prostitutes, among other things of value, from Francis in exchange for
helping GDMA win and maintain contracts and overbill the Navy by over $35
million.
The U.S. Navy’s Seventh Fleet represents
a vital piece of the United States military’s projection of power as well as
American foreign policy and national security. The largest numbered fleet in
the U.S. Navy, the Seventh Fleet is comprised of 60-70 ships, 200-300 aircraft
and approximately 40,000 sailors and Marines. The Seventh Fleet is responsible
for U.S. Navy ships and subordinate commands that operate in the Western
Pacific throughout Southeast Asia, Pacific Islands, Australia, and Russia and
the Indian Ocean territories, as well ships and personnel from other U.S. Navy
Fleets that enter the Seventh Fleet’s area of responsibility.
According to Shedd’s admissions as set
forth in his plea agreement, the defendants informed Francis of planned U.S.
Navy ship movements by providing Francis with classified U.S. Navy ship
schedules and narrative summaries of those schedules. The defendants provided
Francis with internal, proprietary U.S. Navy information. The defendants took
official acts and exerted pressure on, advocated before, and provided advice to
other U.S. Navy officials, knowing and intending that such advocacy and advice
would form the basis for such other officials' decisions to pay GDMA’s claims,
overlook inflated invoices, quash bid protests filed by GDMA's competitors,
suppress competition in contract awards, and resolve in GDMA’s favor other
questions, matters, and controversies regarding GDMA’s husbanding business.
From November 2006 to October 2008,
Shedd served as the Seventh Fleet’s South Asia Policy and Planning Officer,
where he was, in part, responsible for identifying ports that U.S. Navy ships
would visit. From November 2008 to May 2010, Shedd served as a Personnel
Distribution Officer stationed in Millington, Tennessee, and thereafter, upon
being promoted to Commander, from March 2011 until May 2014, Shedd served as
the Executive Officer and later the Commanding Officer of the U.S.S. Milius.
“The defendant has admitted he was one
of the many whose allegiance was switched from the Navy to Leonard Francis,”
said U.S. Attorney Randy Grossman. “This abdication of the defendant’s duties
to the Navy and the United States comes with heavy consequences.”
“Mr. Shedd's disgraceful actions while
serving in a sensitive position with the U.S. Navy's 7th Fleet betrayed the
standards and expectations of all members of the Armed Forces and jeopardized
the Fleet's safety and security,” said Kelly P. Mayo, the Director of the
Department of Defense Office of Inspector General, Defense Criminal
Investigative Service (DCIS). “This lengthy investigation demonstrates
that DCIS and our law enforcement partners will continually strive to fortify
the integrity of the Department of Defense's procurement systems by doggedly
pursuing and rooting-out corruption in the Department.”
“Cmdr. Shedd abused his high-level
position in the Navy by illegally accepting lavish gifts from Mr. Francis in
exchange for providing Mr. Francis classified ship schedules listing numerous
ships, specific ports, and dates for the visits far in advance of ship visits,”
said NCIS Director Omar Lopez. “NCIS and our law enforcement partners are
committed to rooting out bribery and corruption that wastes valuable U.S.
taxpayer money and damages the integrity of the Navy.”
Shedd is scheduled to be sentenced on
July 21, 2022 before U.S. District Judge Janis L. Sammartino.
You can also read my Counterterrorism
magazine piece on the Fat Leonard case via the below link:
Paul Davis On Crime: My Piece On The 'Fat Leonard' U.S. Navy Bribery And Fraud Case
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