U.S. judge refuses bail for businessman accused in Navy corruption case
By Marty Graham SAN DIEGO (Reuters) - A federal judge in San Diego refused bail on Friday for a Malaysian businessman accused of bribing high-ranking U.S. Navy officers to steer millions of dollars of contracts to his company. Leonard Glenn Francis pleaded guilty in January to charges of bribery and conspiracy in federal court in San Diego in a scandal that shook the Navy command structure when the investigation was made public last year. He faces up to 25 years in prison. On Friday, U.S. District Judge Janis Sammartino sided with prosecutors in refusing to release Francis on bail, saying he remains a flight risk. Francis, 50, who has been in federal custody since 2013 according to court records, sought release on bail to get medical care. As part of a deal reached with federal prosecutors, Francis and his company, Singapore-based Glenn Defense Marine Asia, will forfeit $35 million in property and other proceeds stemming from the alleged corruption. Francis also pleaded guilty on behalf of the firm. Federal prosecutors alleged that Francis bribed Navy officers with cash, as well as prostitutes, high-end electronics, luxury hotel stays and high-priced entertainment for Navy officers who then shared classified information. Francis allegedly received information on ship movements and schedules, and later on Navy investigations into his billing practices, prosecutors said. Last month, Navy Lieutenant Commander Todd Malaki pleaded guilty to one count of conspiracy to commit bribery, becoming the eighth person to plead guilty in the expanding probe, the U.S. Justice Department said. Francis's lawyer, Ethan Posner, put forth a bail proposal that would create a home prison for his client, with guards and electronic and video monitoring. Prosecutors said Francis is too smart and wealthy to be trusted. "He is not entitled to construct a home jail just because he can afford to," Assistant U.S. Attorney Robert Huie said. Friday marked the second time Francis has been denied bail. (Reporting by Marty Graham in San Diego; Editing by Mohammad Zargham)
