SAN DIEGO — A former contractor for the Malaysian military received a 15-year prison sentence on Tuesday for his involvement in a major bribery and fraud scheme that targeted the U.S. Navy, according to prosecutors.

Leonard “Fat Leonard” Francis, 60, was sentenced to a total of 164 months for the bribery and fraud offenses, along with an additional 16 months for missing his original sentencing hearing in 2022, the U.S. Attorney’s Office for the Southern District of California reported. Besides his jail time, U.S. District Judge Janis L. Sammartino mandated that Francis pay the Navy $20 million in restitution and a $150,000 fine.

He was also required to forfeit $35 million in proceeds gained from his criminal activities, as stated in a news release from the U.S. Attorney’s Office.

Prosecutors characterized Francis as the “mastermind” of a scheme lasting over ten years, during which he bribed Navy officials using millions of dollars in cash, prostitution services, travel, and luxury gifts, among other extravagant benefits. In return, they claimed he acquired classified information from the Navy and defrauded the agency out of tens of millions.

Initially pleading guilty to bribery and fraud charges in 2015, Francis admitted on Tuesday, in a new plea agreement, that he had fled the United States to avoid his original sentencing hearing scheduled for September 2022.

While under house arrest, he removed his GPS monitor, escaped to Mexico, and then traveled to Cuba, according to prosecutors. He was eventually captured in Venezuela and extradited back to the U.S. in December 2023.

“Leonard Francis enriched himself with taxpayer money while compromising the integrity of U.S. Naval forces,” stated U.S. Attorney Tara McGrath. “His deceit and manipulation will have lasting effects, but justice has prevailed.”

What was the ‘Fat Leonard’ scandal?

Francis, a Malaysian national who was last based in Singapore, owned and managed a ship servicing company called Glenn Defense Marine Asia Ltd. (GDMA), which supplied goods and services to Navy vessels at ports in the Asia Pacific region.

Documents from the court reveal that Francis and GDMA admitted to providing numerous Navy officials with “millions of dollars in gifts,” which included more than $500,000 in cash, prostitution services, expensive travel accommodations like first or business class flights and five-star hotels, and extravagant dining experiences. They also received luxury gifts such as Cuban cigars, Kobe beef, Dom Perignon Champagne, and Spanish suckling pigs.

In return, Francis acknowledged that U.S. Navy personnel advocated for him and his company during the procurement processes and provided him with classified information about Navy ship port visits, sensitive U.S. Navy data such as competitor bids for contracts, and details regarding investigations by the Naval Criminal Investigative Service and U.S. Navy into GDMA’s operations.

According to prosecutors, Francis admitted in his 2015 plea agreement that he used this classified information to overcharge the Navy for services provided by his company, including fuel, tugboats, and sewage disposal.

Kelly Mayo, who directs the Defense Criminal Investigative Service, stated that Francis’s extensive scheme “ultimately cost American taxpayers millions and eroded public trust in some of the Navy’s senior leaders.”

Federal authorities have labeled this case as one of the “largest and most complex public corruption” cases ever investigated in the U.S. military’s history. In 2018, prosecutors indicated that 33 defendants were charged in relation to this investigation, with 22 having pleaded guilty.

Prosecutors estimate that ‘Fat Leonard’ has 8.5 years left on his sentence

Francis was first arrested in San Diego in September 2013 and was held in pretrial detention until December 2017, when he was released under medical circumstances, having served four years and three months in custody.

Following this, he was placed under house arrest until he fled the country in September 2022, according to prosecutors. After being recaptured, he pleaded guilty and cooperated with authorities.

For several years, Francis met with federal investigators to “discuss unprecedented levels of corruption within the U.S. Navy,” as reported by the U.S. Attorney’s Office. He provided insights on hundreds of sailors, including petty officers and admirals, along with various financial documents, photographs, receipts, and Navy contracting records.

Prosecutors indicated that Francis has already served over six years of his sentence, including time spent in custody in Venezuela, leaving him with an estimated 8.5 years remaining. Additionally, GDMA was also sentenced to five years of probation and faced a $36 million fine on the same day.