US sailor admits bribery in Asia graft scandal

Image
AFP Los Angeles
Last Updated : May 21 2014 | 2:26 AM IST
A third US sailor pleaded guilty today to accepting cash and luxury goods in exchange for classified Navy information in a bribery scandal involving ships in Asia and the Pacific.
Petty officer Daniel Layug, who was based in Japan at the time and faces up to five years in prison, admitted accepting over USD 10,000 from Singapore-based defense contractor Glenn Defense Marine Asia (GDMA).
In return, the 27-year-old gave them classified ship schedules and sensitive information about an ongoing criminal investigation into their activities.
Layug is the sixth defendant charged, and the third to plead guilty, in the alleged bribery scheme involving GDMA, a long-time provider of port services to US Navy ships in the Asia-Pacific region.
"Every service member is entrusted with the enormous responsibility of protecting this country at all costs," said Laura Duffy, US Attorney for the Southern District of California.
"Because of greed, Daniel Layug fell woefully short of that high calling, and this guilty plea holds him accountable for a painful betrayal," she added in a statement.
In a plea deal, he admitted to receiving USD 1,000 monthly in cash, various electronic gadgets, and luxury hotel stays for himself and others in Malaysia, Singapore, Indonesia, Hong Kong and Thailand.
"What are the chances of getting the new iPad 3? Please let me know," Layug emailed to his GDMA contact, to whom he also gave a "bucket list" of gadgets he wanted including "a high end camera, an iPhone5 cellular phone, a Samsung S4 cellular phone, and an iPad Mini."
"The camera is awesome bro! Thanks a lot! Been a while since I had a new gadget!" he wrote after receiving the goods.
Layug pleaded guilty to a single count of conspiracy to commit bribery. He was allowed to remain free on bond until a sentencing hearing due on September 2.
As well as a jail term, he faces a USD 250,000 fine or twice whatever he made from his bribery activities -- whichever is the greater.
The scandal is estimated to have cost the US Navy USD 20 million in excessive charges and bogus invoices submitted by GDMA for its port services.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: May 21 2014 | 2:26 AM IST

Next Story