CALIFORNIA – U.S. Navy Petty Officer First Class Daniel Layug plead guilty today to accepting more than $10,000 in cash, consumer electronics and travel expenses from a foreign defense contractor in exchange for classified and internal Navy information.
The bribery crimes involving Layug and others have cost the Navy more than $20 million in losses, officials stated.
Layug, 27, entered his plea before U.S. Magistrate Judge Karen S. Crawford to one count of conspiracy to commit bribery.
He is the sixth defendant charged – and the third to plead guilty – in the alleged bribery scheme involving Singapore-based defense contractor Glenn Defense Marine Asia, which provided port services to U.S. Navy ships in the Asia Pacific region.
“Today, U.S. Navy Petty Officer First Class Dan Layug admitted that he swapped classified U.S. Navy information for cash, luxury travel perks and electronic gadgets from a defense contractor,” said Acting Assistant Attorney General David O’Neil.
Adding, “The Criminal Division, with our law enforcement partners, is committed to holding responsible those who were part of this massive fraud and bribery scheme that cost the U.S. Navy more than $20 million.”
“Every service member is entrusted with the enormous responsibility of protecting this country at all costs,” said U.S. Attorney Laura Duffy. “Because of greed, Daniel Layug fell woefully short of that high calling, and this guilty plea holds him accountable for a painful betrayal.”
Layug’s guilty plea is part of an ongoing investigation, authorities said.
Glenn Defense Marine Asia CEO and His Cousin Secretly Recruited Navy Personnel
According to allegations in court documents, Defense Marine Asia owner and CEO Leonard Glenn Francis and his cousin, Defense Marina Asia executive Alex Wisidigama, secretly recruited Navy personnel – including Layug, Commander Michael Vannak Khem Misiewicz, Commander Jose Luis Sanchez, and Naval Criminal Investigative Service Special Agent John Beliveau – to provide classified ship schedules and other sensitive U.S. Navy information in exchange for cash, travel expenses, and consumer electronics.
Defense Marine Asia allegedly overcharged the Navy under its contracts and submitted bogus invoices for more than $20 million in port services, officials said. It gave Layug envelopes of cash on a regular basis. Layug admitted that he accepted a $1,000 monthly allowance from Defense Marine Asia.
On May 21, 2012, Defense Marine Asia’s vice president of global operations instructed a Defense Marine Asia accountant that “at the end of each month, we will be providing an allowance to Mr. Dan Layug. Total of US $1,000. You may pay him the equivalent in Yen. He will come by the office at the end of each month to see you.”
Layug also admitted that he received luxury hotel stays for himself and others in Malaysia, Singapore, Indonesia, Hong Kong and Thailand, according to officials.
Layug Asked Glen Defense Marine Asia for an iPad3 and Other Electronics in Exchange for Information
Court documents indicate that Layug asked Defense Marine Asia for consumer electronics.
In an email on March 9, 2012, Layug asked the vice president of global operations, “What are the chances of getting the new iPad 3? Please let me know.”
In the plea agreement, Layug admitted that Defense Marine Asia then provided him with an iPad 3.
In another email exchange on May 28, 2013, Layug asked the vice president of global operations for a “bucket list” of items including a high end camera, an iPhone5 cellular phone, a Samsung S4 cellular phone, and an iPad Mini.
Shortly after sending his “bucket list” to the vice president of global operations, Layug stated in an email that “the camera is awesome bro! Thanks a lot! Been a while since I had a new gadget!”
Defense Marine Asia CEO Francis was previously charged with conspiring to bribe U.S. Navy officials. Wisidagama pleaded guilty on March 18 to defrauding the U.S. Navy.
Two other senior Navy officials – Commander Michael Vannak Khem Misiewicz, 46, and Commander Jose Luis Sanchez, 41 – have been charged separately with bribery conspiracies involving Defense Marine Asia.
On Dec. 17, Naval Criminal Investigative Service Supervisory Special Agent John Bertrand Beliveau II, 44, pleaded guilty to conspiracy and bribery charges for regularly tipping off Francis to the status of the government’s investigation into Defense Marine Asia.