The U.S. Attorney’s Office Southern District of California released the below information:
SAN DIEGO – Former U.S. Navy Captain
Donald Hornbeck pleaded guilty in federal court today to bribery charges,
admitting that while he directed the operations of all combatant ships in the
Seventh Fleet, he accepted at least $67,830 in extravagant dinners, hotels,
parties and prostitutes from foreign defense contractor Leonard Francis in
exchange for breaching his official duty to the U.S. Navy.
According to his plea agreement,
Hornbeck admitted that he corruptly used his official position to benefit
Francis, the owner and CEO of Singapore-based Glenn Defense Marine Asia, a ship
husbanding company that serviced U.S. Navy ships in the Asia Pacific
region. He admitted that he endeavored to send Navy ships into ports
serviced by GDMA; shared confidential Navy information with Francis in order to
help GDMA; and helped with evaluating and indoctrinating potential new Navy
members to help Francis.
Hornbeck was one of nine members of the
U.S. Navy’s Seventh Fleet indicted by a federal grand jury in March 2017 for conspiring
with Francis and for receiving bribes. Hornbeck is the fourth of the
Seventh Fleet defendants to plead guilty. The remaining 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 and David Lausman; and Commander Mario
Herrera. Trial is scheduled for February 28, 2022.
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, 29 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 many other things of value, from Francis in exchange for
helping GDMA win and maintain contracts and overbill the Navy by over $35
million.
“While scores of Navy officials were
partying with Leonard Francis, a massive breach of national security was in
full swing,” said U.S. Attorney Randy Grossman. “Today another participant has
admitted that he lost his way, allowing greed to replace honor and duty as the
driving force in his life. This is a day of reckoning for a captain who traded
his honor and integrity for material pleasures.”
“Mr. Hornbeck abdicated the standards,
responsibilities, and ideals required of a senior U.S. Navy officer over a
multi-year period solely to enrich himself and others by willfully facilitating
a corrupt Navy contractor's years’ long fraud against the U.S. Government,”
said Kelly P. Mayo, the Director of the Department of Defense Office of
Inspector General, Defense Criminal Investigative Service (DCIS). “DCIS
will continue to work unrelentingly with its law enforcement partners to
mitigate corruption from within the Department of Defense and its contractors.
This investigation demonstrates the American taxpayer, the Department of
Defense, and the national security interests of the United States deserve
better.”
“Mr. Hornbeck betrayed his oath to the
Navy and deserves to be held fully accountable for his criminal actions to
accept lavish gifts from Mr. Francis in exchange for influencing ship schedules
in favor of ports that Mr. Francis preferred and otherwise prioritizing the
business interests of GDMA and Mr. Francis over those of the Navy,” said NCIS
Director Omar Lopez. “NCIS and our law enforcement partners are steadfastly committed
to rooting out bribery and corruption that wastes valuable U.S. taxpayer money,
damages the integrity of the United States Navy, and undermines the public
trust.”
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 his plea agreement,
Hornbeck admitted to receiving the following bribes from Francis:
- On February 24, 2007, during the U.S.S. Blue
Ridge's port visit to Singapore, Hornbeck and others attended a cocktail
reception hosted by Francis on the helipad of the Jaan Restaurant atop the
Shangri-La Hotel, followed by an extravagant dinner and live
entertainment. The U.S.S. Blue Ridge is the flagship of the Seventh Fleet.
- On March 24, 2007, Hornbeck and others attended a
multi-course dinner hosted by Francis at the Oak Door in Tokyo, Japan,
during which was served, at Francis’s expense, foie gras, Lobster
Thermidor, and Sendai Tenderloin, and for dessert, “Liberté Sauvage,” the
winning cake of the 10th Coupe du Monde de la Patisserie 2007, followed by
cognac and cigars. During the event, the attendees posed for a photograph
wearing custom-made GDMA neckties.
- On January 29, 2008, during the U.S.S. Blue
Ridge's port visit to Hong Kong, Francis hosted and paid for a dinner
event in the Alsace Room of the Petrus Restaurant, which Hornbeck and
several others attended. Dinner that evening was an eight-course meal,
featuring black truffle soup, rock lobster salad, oscetra caviar, pan-seared
duck liver with pear and sunchoke, Dover sole, grilled Wagyu beef
tenderloin Rossini, a selection of fine cheeses, and baked Alaska. The
total cost of the event was approximately $18,371.
- On May 2, 2008, Hornbeck and others stayed at
Francis’ expense for one night at the Conrad Hotel in Bangkok, during
which they were entertained by prostitutes paid for by Francis. On May 4,
2008, a co-conspirator emailed Francis to notify him that Hornbeck and
others “were all smiles on the drive home over their “one night in
Bangkok.”
- Incident to the U.S.S. Blue Ridge's port visit to
Singapore from May 6-9, 2008, Hornbeck and others stayed at Francis’s
expense at the Shangri-La Hotel in Singapore.
- On May 6, 2008, Francis hosted dinner at Mezza9
in Singapore, after which, Francis arranged for several prostitutes to
entertain Hornbeck and others. On May 7, 2008, Hornbeck emailed Francis to
say thank you for a fantastic dinner last night. “Also really enjoyed my
new Mongolian Friend,” a reference to a prostitute, to which Francis
noted: “Hot Mongolian [B]arbeque Ribs!” On May 10, 2008, a co-conspirator
wrote to Francis reporting, “The 3 [Ensigns] [JD, Hornbeck, and BL] were
all grins this morning as we got underway! Hornbeck said he couldn’t have
survived another night in Singapore with you!”
- On May 22-25, 2008, during a port visit by the
U.S.S. Blue Ridge to Manila, Philippines, Hornbeck and several others
stayed at Francis’ expense at the Makati Shangri-La in Manila,
Philippines, where for himself and the U.S. Navy attendees, Francis booked
the Presidential Suite. In this venue, Francis hosted a multi-day party,
with many prostitutes in attendance. Room and alcohol charges borne by
Francis exceeded $50,000 USD. On or about May 25, 2008, Hornbeck emailed
Francis to say, “[J]ust wanted to say thanks - was great seeing you again.
Always a pleasure spending time with you.”
Hornbeck is scheduled to be sentenced on
September 8, 2022 before U.S. District Judge Janis L. Sammartino.
DEFENDANT Case
Number: 17-CR-0623-JLS
Donald
Hornbeck
Age:
61
Greenfield, Indiana
SUMMARY OF CHARGES
Bribery of a Public Official, in
violation of 18 U.S.C. § 201(b)(2)
Maximum Penalty: Fifteen years in
prison, $250,000 fine
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
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