‘Fat Leonard’ faces sentencing as epic Navy scandal nears conclusion

SAN DIEGO — Leonard Glenn Francis, the pudgy U.S. Navy contractor, conman and escape artist who repeatedly outsmarted federal officials over two decades, could be released from prison in just one year under a new plea agreement he struck with by the Justice Department, court records show.

The acknowledged mastermind of the biggest corruption scandal in U.S. military history, Francis is scheduled to be sentenced on fraud and bribery charges Tuesday in U.S. District Court in San Diego, 11 years after he was first arrested here in an international sting operation, and two years after he was first arrested here during an international sting operation. after he escaped and fled to Venezuela.

In December, Francis returned to the United States in shackles as part of a high-stakes prisoner swap agreed between the Biden administration and the government of Venezuelan President Nicolas Maduro.

Under federal sentencing guidelines, Francis would normally have received a prison sentence of 17.5 to 22 years for his crimes, court documents show.

But as part of Francis’ plea agreement, the Justice Department agreed to support a much lighter sentence, citing the extensive cooperation he provided to federal agents investigating Navy corruption before fleeing to Venezuela.

Francis, 60, is currently being held in a prison in San Diego. As a Malaysian citizen, he will be deported after serving his sentence. His company, Glenn Defense Marine Asia, long known in maritime circles as “Fat Leonard” because of its weight, once received $250 million in federal contracts to resupply and maintain Navy ships during port calls in Asia.

In court papers, Francis admitted that he bribed “scores” of Navy officers to look the other way while his company overbilled the federal government by tens of millions of dollars for port visit expenses. Since the early 1990s, documents show, he treated visiting admirals and ship captains to lavish dinners at Michelin-starred restaurants, hosted sex parties during which he supplied Navy officers with prostitutes, and enticed 10 U.S. sailors to tell him military secrets.

As part of the plea deal, federal prosecutors are recommending that U.S. District Judge Janice Sammartino impose a total prison term of 140 months, or just under 12 years. Meanwhile, Francis’ lawyer is urging the judge to sentence Francis to just under nine years in prison.

Francis has already spent more than six years behind bars since he was first arrested in 2013, and that time will count toward his sentence. He will also likely be eligible for significant early release credits, further shortening his time in prison.

With those cuts, he could be freed by the end of next year if a judge accepts the sentence recommended by his lawyer, according to attorneys familiar with the case. If the Justice Department prevails, Francis will likely have to wait about three and a half years before he is eligible for release.

Sammartino, who has served as a federal judge since 2007 and oversaw the prosecution of Francis and 32 other defendants in the Navy corruption scandal, is not bound by the recommendations and could impose a tougher or lighter sentence.

Francis is the only remaining defendant in the case. His conviction will mark the end of a saga that has paralyzed Navy leadership for nearly a decade.

In a recent court filing, prosecutors said Francis orchestrated a bribery campaign “that essentially engulfed an entire generation of U.S. Navy commanders.”

After his arrest, about 1,000 people came under scrutiny, including 91 admirals. Federal prosecutors filed criminal charges against 34 defendants, while the Navy court-martialed four and disciplined many others. Dozens of other senior officers implicated in the case were denied promotions or forced to resign.

Francis first pleaded guilty to fraud and bribery charges in 2015. As part of his original plea deal, he became a cooperating witness. Between 2015 and 2017, federal agents and prosecutors questioned him for more than 300 hours. During these interrogations, he implicated hundreds of Navy personnel, providing detailed evidence of how they accepted his gifts and favors.

Federal authorities, encouraged by Francis’ help, gradually gave in to some of his demands for special treatment.

While in prison in late 2017, Francis was diagnosed with kidney cancer and other serious illnesses, including complications from weight-loss surgery he underwent before his arrest. During the secret trial, his lawyers asked to be put on medical leave, arguing that he would likely die if he remained in custody.

Fearing they might lose their star witness, Sammartino and federal prosecutors agreed to allow Francis to be treated by private doctors. But federal officials also allowed him to live in luxurious comfort, living in a $5,000-a-month mansion in San Diego with a pool and maids.

Over Labor Day weekend 2022, the sick scammer went on the run. He cut off the electronic ankle bracelet that court officials were using to track his whereabouts, called an Uber and raced south toward the border. By the time someone noticed he was missing, he was already in Mexico on his way to Venezuela. Francis was arrested several weeks later during a stopover at Simon Bolivar International Airport in Maiquetia. At that time he was trying to negotiate a trip to Russia.

In addition to bribery and fraud, Francis agreed to plead guilty to new charges related to his escape. Federal prosecutors said in court papers that he deserved a lighter sentence than sentencing guidelines allowed because he provided so much evidence against corrupt Navy officials.

“Perhaps a more severe sentence would have been warranted given Francis’s egregious and persistent criminal conduct and his violation of the Court’s trust in his release on medical leave,” they wrote. “But the substantial assistance provided by Francis cannot be ignored, and the extent and significance of his cooperation cannot be overstated.”

Joseph Mancano, a lawyer for one of the Navy officers against whom Francis testified, called the proposed sentence “grossly inadequate” given the totality of his crimes.

“He flees the country and the government has to engage in a prisoner exchange to bring him back. It’s funny,” Mancano said. “They were essentially caught with their pants down.”

In a court document, Douglas Sprague, Francis’ lawyer, asked for forgiveness for his client’s flight from justice, calling it a “horrific error of judgment.”

“For many reasons, Leonard now considers this one of the greatest mistakes of his life,” Sprague wrote. “Leonard understands that this decision was inexcusable and wrong.”

Sprague said Francis “panicked” because he feared he would be sent back to prison from his rented mansion, which meant he would never see his mother, who was also in poor health, again. (They were never reunited. She died in Malaysia in May.)

Francis is also concerned that he may have to indirectly pay for mistakes made by federal prosecutors during the 2022 criminal trial of five Navy officers on corruption-related charges, Sprague said.

Although the jury found the four officers guilty, Sammartino found that prosecutors committed “egregious and outrageous misconduct.” She later withdrew the conviction. Instead, the Justice Department allowed the officers to plead guilty to one misdemeanor each.

The misconduct tainted several other criminal cases, and the assistant U.S. attorneys handling the Francis case were reassigned. As a result, Francis feared that his cooperation agreement with the Justice Department might effectively fall apart and that he would face a lengthy prison sentence, according to his lawyer.

As part of his initial plea agreement with the government, Francis promised to forfeit $35 million in illegal profits he stole from the Navy. He paid off $5 million of his debt nine years ago but still owes the rest, court records show.