9th Person Charged in Glenn Defense Corruption Case

by Ship & Bunker News Team
Thursday February 5, 2015

A ninth person Tuesday was charged in connection with a long-running investigation into corruption related to procurement for the U.S. Navy's Pacific Fleet, Reuters reports.

Paul Simpkins, a former U.S. Navy contracting official, was charged with conspiracy to commit bribery.

Simpkins is accused of receiving cash, luxury travel, entertainment, and the services of prostitutes between May 2006 and 2012 in return for providing classified information to GDMA's President and CEO, Leonard Glenn Francis, which led to GDMA winning contracts in Thailand and the Philippines.

Simpkins is also charged with attempting to block an investigation into Glenn Defense Marine Asia's (GDMA) overcharging of the U.S. Navy.

He faces up to 5 years in prison and a fine of $250,000.

The arrest and charge of Simpkins is the latest development in the case concerning contracts won by former Singapore-based U.S. Navy contractor GDMA which has engulfed U.S. Naval officers as well as an high profile business figure.

"The GDMA investigation is far from over," said Naval Criminal Investigative Services (NCIS) Director Andrew Traver.

"NCIS will follow the evidence where ever (sic) it leads to bring to justice those who were involved in perpetrating this massive fraud on the Department of the Navy and the American taxpayer."

$200 million over 10 years

GDMA held contracts to restock, repair, refuel and clean the U.S. Navy's Pacific Fleet under contacts that federal authorities say have been worth over $200 million over 10 years.

The company is accused of overbilling the U.S. Navy, demanding kickbacks from subcontractors and bribing officials for inside information.

"With the arrest of Paul Simpkins, who was recently among the Defense Department's high ranking civilians we have uncovered yet another tentacle of this pervasive bribery scheme," said U.S. Attorney Laura E Duffy in a U.S. Department of Justice statement

"The more we learn about the extent of the greed and corruption, the more determined we are to eviscerate it."

Last month Francis, also known as Fat Leonard, was said to be ready to change his plea to guilty.