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Another Navy official charged in burgeoning bribery scandal

Dan Layug accepted $1,000 payments per month, plus expensive gadgets and hotel stays, in exchange for information

It’s one thing for multinational corporations to engage in foreign bribery. That’s a relatively common occurrence. But for a branch of the U.S. military to engage in foreign bribery? That’s not exactly a common occurrence.

However, that’s the scandal facing the U.S. Navy, as a fourth officer was charged in a corruption investigation involving a Singapore-based defense contractor. The Navy officers stand accused of accepting gifts of cash, electronics luxury hotel stays from Glenn Marine Defense Asia.

 Petty Officer First Class Dan Layug, the latest charged in the scandal, is accused of accepting $1,000 payments per month, plus expensive gadgets and hotel stays, in exchange for information on the Navy’s ship schedules. He was detained in San Diego on April 17 is being charged with conspiracy to commit bribery.

U.S. Navy Commander Michael Misiewicz and Navy criminal investigations special agent John Beliveau were arrested on September 16, 2013, and charged with conspiracy to commit bribery as well. Commander Jose Luis Sanchez was charged in November 2013 with accepting prostitutes, cash and luxury travel from the company.

Multiple Glenn Marine executives have been charged for their role in the scandal as well. Former CEO Leonard Glenn Francis was arrested on September 16, 2013, the same time as Misiewicz and Beliveau, for supply Navy officers with cash, concert tickets, prostitutes and other gifts in exchange for business. Company executive Alex Wisidagama was also charged with the same crimes. Both have pleaded guilty.

According to court records, the relationship between the officers and Glenn Marine had been occurring since 2009 for a host of services, including cleaning, restocking, refueling and hosting Navy personnel during their stay in Singapore. In 2011, the U.S. Navy awarded Glenn Marine a contract worth $200 million.

If convicted, Layug faces up to five years in prison and a maximum fine of $250,000.


For more on bribery in legal news, check out these recent InsideCounsel articles:

GlaxoSmithKline investigating bribery of foreign doctors

Navigating the minefield: Special risks in FCPA cross-border internal investigations

Former Direct Access Partners heads charged in bribery scheme

U.K. releases guidelines for new Bribery Act

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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