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A U.S. Navy commander has been found guilty of taking about $ 250,000 in cash and sexual services from a prostitute by a foreign defense contractor in exchange for state secrets.
Information Commander Stephen Shedd had helped the company gain about $ 35 million from the U.S. Navy contract.
In the case that is considered one of the most serious cases of US Navy corruption, dozens of other officials have been arrested.
Shedd is one of the members of the 7th U.S. Fleet based in Japan, and was tried by the Federal Jury in March 2017, becoming the seventh to plead guilty.
According to the US Department of Justice, Shedd and other officers had been to “sex parties with prostitutes, dinners and luxury travel” in exchange for leaking military secrets and influencing Glenn Defense Marine Asia (GDMA), a group in Singapore founded by Malaysian tycoon Leonard Glenn Francis.
The scandal became known as “Fat Leonard”, or ‘Fat Leonard’ from the doable mass of the main corruptor. He was arrested in California in 2013 after being tempted to come to the U.S. by investigators, and now remains in jail or house arrest.
Prosecutors said Shedd and other officers had helped GDMA win and maintain $ 35 million worth of inflated contracts with the U.S. Navy for services such as towing, security or waste management at ports.
As part of the deal with investigators, Shedd admitted that he and others had passed traffic and other information itineraries to the company.
A total of 34 naval officers, contractors and GDMA employees, of whom 28 have pleaded guilty, including 7 U.S. Navy officers.
Shedd will receive his decision from a California court in the summer, while the trial of seven others begins Feb. 28.
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