Navy Officer Allegedly Traded Military Secrets for Prostitutes, Cash

Defense Department

Federal prosecutors have charged a Navy commander with accepting prostitutes, luxury travel and $100,000 from a Singaporean defense contractor in exchange for classified information, according to the Justice Department.

Jose Luis Sanchez was arrested Tuesday and is the third Navy official charged with taking bribes from the contractor. Cmdr. Michael Vannak Khem Misiewicz and Naval Criminal Investigative Service Supervisory Special Agent John Bertrand Beliveau II were charged separately.

Sanchez allegedly provided information that benefited Glenn Defense Marine Asia, a longtime contractor that supplies goods and services to ships and submarines in foreign ports. Court documents unveiled Wednesday accuse Sanchez of selling ship schedules and information that helped GDMA “win and maintain Navy business.”

“As described in the corruption charges unsealed today, senior officials with the United States Navy abused their trusted positions as leaders in our armed forces by peddling favorable treatment -- and even classified government information -- for their personal benefit,” acting Assistant Attorney General Mythili Raman said in a statement. “According to the allegations in this case, a number of officials were willing to sacrifice their integrity and millions of taxpayer dollars for personal gratification.”

In one example, Sanchez arranged for the USS Martin to buy fuel from GDMA rather than using “sea cards,” which take advantage of rates pre-negotiated by the Defense Logistics Agency. As a result, officials paid more than double the amount they should have for USS Martin fuel.  

Sanchez reportedly communicated with Leonard Glenn Francis, GDMA’s CEO who was arrested in September, via email and Facebook messages. The Navy commander referred to himself and his friends as the “Wolf Pack,” and consistently asked Francis to arrange hotel rooms and escorts. Sanchez often called Francis the “Lion King” and asked him for photos of the prostitutes for “motivation.” Sanchez allegedly responded to the pictures by telling Francis, “Yummy…daddy like.”

In return, Francis is said to have written to the prostitute, telling her, “Hey Love Jose is in Manila at the DIAMOND Hotel go and see him he needs some love asap.”

The investigation is ongoing and is being conducted NCIS, the Defense Criminal Investigative Serve, the Defense Contract Audit Agency and the Drug Enforcement Administration.

“Day by day, this massive Navy fraud and bribery investigation continues to widen,” Raman said, “and as the charges announced today show, we will follow the evidence wherever it takes us.”

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by G Suite

    Cross-Agency Teamwork, Anytime and Anywhere

    Dan McCrae, director of IT service delivery division, National Oceanic and Atmospheric Administration (NOAA)

    Download
  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

    Download
  • Federal IT Applications: Assessing Government's Core Drivers

    In order to better understand the current state of external and internal-facing agency workplace applications, Government Business Council (GBC) and Riverbed undertook an in-depth research study of federal employees. Overall, survey findings indicate that federal IT applications still face a gamut of challenges with regard to quality, reliability, and performance management.

    Download
  • PIV- I And Multifactor Authentication: The Best Defense for Federal Government Contractors

    This white paper explores NIST SP 800-171 and why compliance is critical to federal government contractors, especially those that work with the Department of Defense, as well as how leveraging PIV-I credentialing with multifactor authentication can be used as a defense against cyberattacks

    Download
  • Toward A More Innovative Government

    This research study aims to understand how state and local leaders regard their agency’s innovation efforts and what they are doing to overcome the challenges they face in successfully implementing these efforts.

    Download
  • From Volume to Value: UK’s NHS Digital Provides U.S. Healthcare Agencies A Roadmap For Value-Based Payment Models

    The U.S. healthcare industry is rapidly moving away from traditional fee-for-service models and towards value-based purchasing that reimburses physicians for quality of care in place of frequency of care.

    Download
  • GBC Flash Poll: Is Your Agency Safe?

    Federal leaders weigh in on the state of information security

    Download

When you download a report, your information may be shared with the underwriters of that document.