Fat Leonard's Crimes on the High Seas

The rise and fall of the defense contractor who bought off Navy brass with meals, liquor, women and bribes

The Naval brass were already waiting when Leonard Glenn Francis pulled up to the security gate of the San Diego base and flashed his ID. Off in the distance, massive steel-gray destroyers towered in the harbor, above the palm trees and squat, cream-colored barracks. In a military that now outsources many of its functions to the private sector, Francis specialized in servicing ships, specifically the Navy's 7th Fleet in the Pacific, the largest forward command in the world. When a ship or submarine came ashore for a port visit, Francis' firm, Glenn Marine Defense Asia, could provide whatever the crew might need: barges that emptied hundreds of gallons of sewage, divers that scanned the harbor for explosives, vans that took sailors into town to get drunk. "He was actually just really good," says a retired captain who once commanded a 7th Fleet submarine. "There were others. But Glenn Defense was the best." Around Singapore, where Francis kept his headquarters, he drove around in bulletproof Hummers, wore Armani silk suits and Gucci calf-skinned loafers. But on official business with the Navy, he just as often wore American flag neckties, his ringtone programmed to Lee Greenwood's "God Bless the U.S.A." He was 6-foot-3, and weighed nearly 350 pounds – with his stomach stapled. Behind his back, the officers called him Fat Leonard. read more »

Israeli Co. Settles with SEC Over Bribery Allegations

The firm, Elbit Imaging, violated accounting-related provisions of the Foreign Corrupt Practices Act.

The Securities and Exchange Commission announced on Friday that it charged Israel-based Elbit Imaging for violating the books and records and the internal accounting controls provisions of the Foreign Corrupt Practices Act (FCPA).

According to an SEC settlement order, Elbit and Plaza Centers NV, an indirect subsidiary, paid millions of dollars to third-party offshore consultants and a sales agent purportedly for their services related to a real estate development project in Romania and the sale of a large real estate portfolio in the United States. read more »

SEC Charges Penny Stock “Mailman” With Scalping Investors In Gold Mining Stocks

The Securities and Exchange Commission has charged a penny stock promoter based in Florida with defrauding investors in a pair of gold mining stocks by secretly amassing shares before touting the companies publicly.  He allegedly sold the bulk of his stock and reaped more than $1.1 million in illicit profits after his promotions caused the share prices and trading volumes to skyrocket. read more »

Clovis man pleads guilty in real estate Ponzi scheme case

A Clovis man accused of operating a real estate Ponzi scheme pleaded guilty on Monday to mail fraud, wire fraud and money laundering as party of a plea deal, the U.S. Attorney's Office reported.

Seth Adam DePiano, 36, admitted to defrauding investors of about $24 million and agreed to pay restitution to 28 investors. read more »