The U.S. Justice Department released the
below information:
SAN DIEGO – U.S. Marine Corps Colonel
Enrico DeGuzman pleaded guilty to a bribery charge today, admitting that he
accepted more than $67,000 in extravagant meals, drinks, entertainment and
hotel stays in Hong Kong, Singapore, and Tokyo from foreign defense contractor
Leonard Glenn Francis.
DeGuzman admitted that in return for
this and other things of value, he corruptly used his official position to
assist 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. DeGuzman admitted that he endeavored to influence Navy ships into
ports serviced by GDMA; he shared confidential Navy information with Francis in
order to help GDMA; and he helped with evaluating and indoctrinating potential
new Navy members into Francis’s cabal.
In one instance, DeGuzman joined Francis
and others for a $40,000 meal that featured foie gras terrine, duck leg confit,
ox-tail soup, and roasted Chilean sea bass, paired with expensive wine and
champagne, followed by digestifs, cigars and overnights at the Shangri La - all
at Francis’s expense.
DeGuzman 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. DeGuzman is the second
of the Seventh Fleet defendants to plead guilty. The trial of the remaining
defendants was scheduled to begin November 1, 2021, but yesterday it was
postponed until February 7, 2022. The remaining defendants - who are
accused of trading military secrets and substantial influence for sex parties
with prostitutes and luxurious dinners and travel - include U.S. Navy Rear
Admiral Bruce Loveless; Captains David Newland, James Dolan, Donald Hornbeck
and David Lausman; Commander Stephen Shedd; and Commander Mario Herrera.
The overarching fraud and bribery case
has resulted in federal criminal charges against 34 U.S. Navy officials,
defense contractors and the GDMA corporation. So far, 27 of those have pleaded
guilty, admitting collectively that they accepted millions of dollars in luxury
travel and accommodations, meals, 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.
DeGuzman served on the Seventh Fleet
Staff as the Fleet Marine Officer from July 2004 to July 2007. In this
role, DeGuzman was responsible for coordinating the mission of the U.S. Marine
Corps within the Seventh Fleet area of responsibility. From July 2007 to
January 1, 2011, DeGuzman served as the Assistant Chief of Staff of Operations
for U.S. Marine Corps Forces, Pacific, and thereafter, DeGuzman served in a
civilian capacity as the Deputy Chief of Staff of Operations for U.S. Marine Corps
Forces, Pacific.
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.
“With every extravagant meal, Enrico
DeGuzman violated his duty to serve the United States with honor and
integrity,” said Acting U.S. Attorney Randy Grossman. “Today those choices have
caught up to him, and he has been held accountable.” Grossman commended the
federal prosecutors and agents who diligently pursued this case.
“Mr. DeGuzman knowingly misused his
position of trust as a senior U.S. Marine Corps officer to actively work with,
and advocate for, a corrupt U.S. Navy contractor, while expecting and receiving
lavish gifts in return, all at the expense of the U.S. Navy and the national
security interests of the United States,” said Kelly P. Mayo, the Director of
the Department of Defense Office of Inspector General, Defense Criminal
Investigative Service (DCIS). “As this case underscores, DCIS will
work tirelessly with its partners to root out corruption within the Department
of Defense and its components in order to maintain the trust, faith, and
precious resources of the American taxpayer.”
“Colonel DeGuzman put his personal
interests ahead of protecting the nation,” said NCIS Director Omar Lopez.
“NCIS and our law enforcement partners will continue to aggressively pursue any
act of bribery and corruption involving Mr. Francis and GDMA or otherwise as
these reprehensible acts diminish the operational readiness of the fleet and
warfighter superiority of the USMC and U.S. Navy.”
According to his plea agreement,
DeGuzman admitted to receiving the following bribes from Francis:
- On February 17, 2006,
during the U.S.S. Blue Ridge's port visit to Hong Kong, DeGuzman and others
dined and drank at Francis’s expense at the Petrus Restaurant at a cost of
more than $20,000. To conceal and cover up their corrupt relationship,
Francis created fraudulent receipts for the Petrus dinner that DeGuzman
knew represented a small fraction of the actual cost of the dinner. While
in Hong Kong, DeGuzman and others also stayed at the Shangri-La Hotel paid
for, in part, by Francis.
- On March 9, 2006, during
the U.S.S. Blue Ridge’s port visit to Singapore, DeGuzman and others dined
with Francis at the Jaan Restaurant in Singapore. Prior to dinner,
DeGuzman and others enjoyed entertainment and cocktails on the exclusive
rooftop helipad. At dinner, enjoyed foie gras terrine, duck leg confit,
ox-tail soup, and roasted Chilean sea bass, paired with expensive wine and
champagne, followed by digestifs and cigars. The estimated cost to
Francis was $40,000.
- On September 9, 2006,
DeGuzman and others dined at Francis's expense at the New York Grill in
Tokyo, Japan, and stayed at Francis's expense at the Park Hyatt Hotel, all
at a total cost to Francis of approximately $30,000.
- During the U.S.S. Blue
Ridge's port visit to Singapore from about February 22-27, 2007, Francis
paid for the hotel expenses for DeGuzman and others at the Shangri-La
Hotel, Singapore at a total cost to Francis of approximately $50,000. As
part of this port visit, DeGuzman and others dined with Francis at
Francis's expense on multiple occasions, including at the Blu Restaurant
within the Shangri-La Hotel, and at the Jaan Restaurant atop the
Shangri-La Hotel.
- On March 24, 2007,
DeGuzman 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.
In a moment of candor encapsulating
these corrupt relationships, just before DeGuzman departed Seventh Fleet
assignment, he warned Francis in an email dated July 7 2007, “[U]nfortunately,
I don't think I'll be able to influence people [in my next assignment] like I
did there at 7th Fleet.”
DEFENDANT Case
Number: 17-CR-0623-JLS
Enrico
DeGuzman
Age: 63
Las Vegas, Nevada
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
You can also read my Counterterrorism magazine
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
