US suspends two admirals over major bribery scandal

Two US admirals — including the director of naval intelligence — are under investigation as part of a major bribery scandal

Telegraph, Jacqui Goddard, Miami, 09 Nov 2013

 (L-R): Rear Adm. Bruce F. Loveless and Vice Adm. Ted Branch Photo: AP

Two of America’s top Navy intelligence admirals have been placed on leave in a major escalation of a federal bribery probe in which officers are accused of selling military secrets in exchange for cash, prostitutes and Lady Gaga concert tickets.

Vice Admiral Ted Branch and Rear Admiral Bruce Loveless have also been stripped of access to classified information pending the outcome of an investigation into allegations of improper business relations with Leonard Francis, chief executive of the Singapore-based maritime contracting firm Glenn Defence Marine.

“The suspension was deemed prudent given the sensitive nature of their current duties and to protect and support the integrity of the investigative process,” read a US Navy statement.

“The allegations against Admirals Branch and Loveless involve inappropriate conduct prior to their current assignments and flag office rank. There is no indication, nor do the allegations suggest, that in either case there was any breach of classified information.”

Mr Francis, a flamboyant businessman known as “Fat Leonard”, is alleged to have bribed Navy officials to hand over confidential shipping information and divert warships to ports whose lax management allowed him to overcharge the military by at least $10 million for services such as tug boats, fuel, sewage removal, security and docking fees.

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He was arrested in September and charged with bribery. He has pleaded not guilty. The Navy has terminated contracts worth $200 million with his firm, which for 25 years had serviced and supplied the Pacific fleet.

The Naval Criminal Investigative Service (NCIS) began its investigation into corruption and bribery at the Navy’s outpost in Singapore in 2010. Vice Adm Branch, the director of naval intelligence, and Rear Adm Loveless, director of intelligence operations, are the highest-ranking staff to have been implicated in the scandal.

Three lower-ranking officers have been charged with accepting bribes such as prostitution services, luxury travel, and tickets to see the Lion King musical in Japan and Lady Gaga in Thailand. They have denied the charges. Prosecutors in the case

“According to the allegations in this case, a number of officials were willing to sacrifice their integrity and millions of taxpayer dollars for personal gratification,” said US attorney Laura Duffy, a prosecutor on the case.

Both admirals served in the Pacific region prior to their current Pentagon roles.

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