Former U.S. Navy Captain and Two Chief Petty Officers Latest to be Indicted in International Navy Bribery and Fraud Scandal

Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718

NEWS RELEASE SUMMARY – August 16, 2018

SAN DIEGO – U.S. Navy Captain (Retired) David Williams Haas was indicted by a federal grand jury yesterday on charges that he received at least $145,000 in bribes from foreign defense contractor Leonard Francis, who plied him with parties at luxurious hotels, prostitutes, top-shelf booze and food.

In separate indictments, Master Chief Petty Officer (Retired) Ricarte Icmat David and Chief Petty Officer (Retired) Brooks Alonzo Parks were charged with honest services fraud for receiving cash, luxury travel, lavish hotel suites, dining and the services of prostitutes from Francis, owner and chief executive of Glenn Defense Marine Asia. The company provided services such as tugboats, security, fuel, food, water and trash removal to U.S. Navy ships during port visits in Asia Pacific.

According to three indictments returned today in San Diego, the trio reciprocated by using their influence within the Navy’s Seventh Fleet to approve inflated invoices by GDMA, to steer ships to GDMA-controlled ports and otherwise advance the interests of Francis and GDMA. The indictment further alleges that they and their co-conspirators used their access to slip GDMA classified and proprietary U.S. Navy information, and helped GDMA recruit other U.S. Navy officers to join the conspiracy.

According to the eight-count indictment, Haas received the following bribes, among others, from Francis:

• On November 5, 2011, while Haas was director of Maritime Operations for the Seventh Fleet staff aboard the USS Blue Ridge, Francis took Haas and others to dinner at the Ritz Carlton in Tokyo, Japan, and provided them with prostitutes at a cost of more than $20,000.
   
• On May 11-15, 2012, Francis paid for rooms at the Shangri-La in Jakarta, Indonesia, plus dinner, entertainment at a night club, alcohol and prostitutes for Haas and others.
   
• On June 29-30, 2012, in Tokyo, Japan, Francis paid for a two-day party for Haas and others including transportation, dinner at Nobu Restaurant and entertainment at several hostess clubs where the services of prostitutes were provided, at a cost of more than $75,000.
   
• On November 30, 2012, Francis provided a car and driver for Haas and his subordinate and co-conspirator Commander Michael Misiewicz from Yokosuka, Japan, to the Ritz Carlton Hotel in Tokyo, where Francis was staying. (Misiewicz pleaded guilty and was sentenced to 78 months in prison for  conspiracy and bribery in April 2016). In Francis’s room, with Haas present, Misiewicz handed Francis an envelope of classified long-range Seventh Fleet ship schedules and Seventh Fleet organization charts. The schedules were stamped “SECRET” and projected ship visits approximately 14 months in advance. These classified schedules included information related to the U.S. Navy ballistic missile defense operations in the Pacific.  After reviewing the ship schedules, Francis, Haas and Misiewicz pored over the Seventh Fleet organizational chart, which Haas and Misiewicz had brought with them, in an effort to identify and evaluate potential successors to the corrupt relationship with Francis when Misiewicz departed the Seventh Fleet the following month, in December 2012.  Following these discussions, Francis took Haas and Misiewicz to a strip club where food and prostitutes were provided at a cost of approximately $7,000.

A separate indictment alleges that Master Chief Petty Officer David conspired with Francis, GDMA and others to defraud the United States of David’s honest services. In exchange for breaching his fiduciary duties to the United States Navy and the American public, David received cash, hotel rooms, and prostitutes.  According to the indictment, David conspired to accept things of value from Francis and other GDMA employees in exchange for David approving fraudulently inflated invoices following port visits, passing classified information to GDMA, advocating for GDMA in contracting disputes, and providing GDMA with internal U.S. Navy information concerning competitors.

Francis gave David cash in exchange for David approving GDMA’s fraudulently inflated ship husbanding invoices, the indictment alleges. After the receipt of one cash installment, on November 16, 2005, David emailed Francis thanking him for the “wonderful Christmas present.”  David, thereafter, repeatedly asked Francis for cash to build his retirement home in the Philippines, among other things. During the course of the conspiracy, David received a total of approximately $40,000 in cash from Francis.

A third indictment alleges that Parks received gifts, lavish hotel suites, airline tickets and various other benefits in exchange for Parks providing sensitive and proprietary U.S. Navy information, including competitor pricing and U.S. Navy ship and personnel movement information, among others.

So far, 32 defendants have been charged and 20 have pleaded guilty in the U.S. Navy bribery and fraud scandal.

The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the U.S. Attorney’s Office for the Southern District of California.                

DEFENDANT                                                                       Case Number: 18CR3656                           

Captain (Retired) David Williams Haas                                 Age 50             Kailua, Hawaii

SUMMARY OF CHARGES

Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371

Maximum Penalty: 5 years in prison, a $250,000 fine or twice the gross pecuniary gain or twice the gross pecuniary loss, whichever is greater

Bribery, in violation of 18 U.S.C. § 201

Maximum Penalty: 15 years in prison, a $250,000 fine

Conspiracy to Commit Honest Services Fraud, in violation of 18 U.S.C., Secs. 1349, 1346, 1343

Maximum Penalty: 20 years in prison, a $250,000 fine or twice the gross pecuniary gain or gross pecuniary loss from the offense, or three times the monetary equivalent of the thing of value, whichever is greater

DEFENDANT                                                                       Case Number: 18CR3655                           

Master Chief Petty Officer (Retired) Ricarte Icmat David    Age 61            Tarlac Province, Philippines

SUMMARY OF CHARGES

Conspiracy to Commit Honest Services Fraud, in violation of 18 U.S.C., Secs. 1349, 1346, 1343

Maximum Penalty: 20 years in prison, a $250,000 fine

DEFENDANT                                                                       Case Number: 18CR3657                           

Chief Petty Officer (Retired) Brooks Alonzo Parks               Age 46             Naples, Italy

SUMMARY OF CHARGES

Conspiracy to Commit Honest Services Fraud, in violation of 18 U.S.C., Secs. 1349, 1346, 1343

Maximum Penalty: 20 years in prison, a $250,000 fine

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Defense Contract Audit Agency