Francis, whose company “husbanded” US Navy vessels calling at Far East ports including Phuket, supplying food and other supplies, transport and security for the warships and their crews while in port, is on trial in San Diego accused to masterminding a web of corruption.
Thre US Navy commanders are on trial for supplying Francis with secret information on ship movements to give him an edge in bidding for husbanding. The officers, it is alleged, even steered ships towards ports where GDMA could make the fattest profits.
In return they were paid with cash, lavish hotel accommodation and prostitutes.
Francis is also accused of massively inflating prices, particularly of fuel.
Now one of the three, John B. Beliveau II, The Washington Post reported on Thursday (December 11) appears to have come to a deal with prosecutors whereby he will plead guilty and share information with federal prosecutors about his extensive relationship with Francis and others involved in the investigation.
Beliveau, a supervisory special agent with the Naval Criminal Investigative Service, was arrested in September.
He was charged with helping GDMA dodge multiple criminal investigations by leaking inside information about NCIS probes.
Francis, whose company – before the scandal broke – had US$200 million (B6 billion) in contracts with the US Navy – has pleaded not guilty.
Beliveau’s plea marks a big step for investigators. They are trying to figure out the scope of the alleged corruption involved in the awarding and administering of lucrative Navy contracts for port services in Asia.
Besides Beliveau, two navy commanders have been arrested and charged with taking bribes and two US Navy admirals are also under a cloud, though no legal action has yet been taken against them.
US Navy and Justice Department figures show how effective the alleged corruption ring was. In 2009 two US warships visited Laem Chabang near Bangkok, four came to Phuket, one went to Port Klang in Malaysia and none to Sepangar, also in Malaysia.
The figures the following year were 13, 18, eight and nine respectively.