U.S. Navy Rear Admiral Robert Gilbeau was sentenced today to 18 months in prison for lying to investigators to conceal his illicit 20-year relationship with Leonard Glenn Francis, the owner of Glenn Defense Marine Asia (GDMA), the foreign defense contractor at the center of a major bribery and fraud scandal.
Gilbeau admitted that he lied when he told DCIS and NCIS agents that he had not received any gifts from Francis and “always paid for half of the dinner” when he and Francis met about three times a year. He admitted became aware that Francis and others had been arrested in connection with the fraud and bribery offenses in September 2013. In response, he destroyed documents and deleted computer files.
GDMA provided ship husbanding services such as trash and sewage removal, food, water, security and fuel to U.S. Navy ships. As stated in his plea agreement, in 2003 and 2004, Gilbeau was the supply officer on the USS Nimitz, where he was responsible for procuring all goods and services necessary for operation of the ship. He was assigned to the office of the Chief of Naval Operations as the head of aviation material support, which establishes policies and requirements for the Navy’s air forces. In August 2010, after he was promoted to admiral, Gilbeau assumed command of the Defense Contract Management Agency International, where he was responsible for the global administration of DOD’s most critical contracts performed outside the United States.
Twenty current and former Navy officials have been charged so far in the fraud and bribery investigation. Of the 20 Navy officials, 10 have pleaded guilty, and 10 cases are pending. Five GDMA executives and the GDMA corporation have pleaded guilty.
The moral of the story is that the government will find out if you try to perpetrate fraud against the government while performing activities in your official capacity. The DOJ is aggressively pursuing multiple cases of this type. Even if you are just aware of these activities and take no action, you can be held accountable. Be warned.