#478 | Craig Whitlock: How Fat Leonard Bribed and Corrupted the U.S. Navy - The Realignment Podcast

Craig Whitlock, Washington Post reporter and author of Fat Leonard: How One Man Bribed, Bilked, and Seduced the U.S. Navy & The Afghanistan Papers, joins The Realignment. Marshall and Craig discuss how a Malaysian defense contractor, Leonard Francis (nicknamed "Fat Leonard"), bribed scores of high-ranking U.S. Navy officers across three decades, defrauded the Navy out of tens of millions of dollars, exposed vast security and counter-intelligence gaps in the military, and the reforms needed to prevent future corruption scandals.

0:00 - Introduction
1:08 - Afghanistan & Fat Leonard
7:29 - Other scandals
10:02 - Weaknesses that Leonard exploited
17:30 - Why did Leonard’s con work?
25:38 - Leonard’s work
33:32 - Senior military officers
42:10 - Leonard’s motivations
45:15 - Security clearance
48:48 - Impact on the Navy
53:17 - Military culture
56:05 - Lessons

[tspencer]

I was on USS Ronald Reagan when the first three names to come out were aboard- the battle group commander, Admiral Mike Miller, Captain Terry Kraft, and Captain David Pimpo - were on the take from Fat Leonard. We pulled into Brisbane, Australia as the first port call of our 2006 deployment in the middle of the jellyfish migration season, and spent the entire visit with jellyfish clogging up vital seawater intakes that supported the nuclear propulsion plants, emergency diesel generators, and air conditioning systems.

Captain Kraft, the CO of USS Ronald Reagan at that time, forced several of my friends and coworkers in Reactor Department out of the Navy for what he called "integrity violations" during this same time period, costing them thousands of dollars in bonuses that needed to be repaid in several cases.

Meanwhile, after he was forced into retirement, Rear Admiral Kraft went on to a six-figure VP position at General Atomics. He's now the Executive Director of Midway Museum ship in San Diego.

Rules for thee, but not for me. Usual story with the Navy.

[JH-]

Just read the book based on a recommendation from a friend who served in that theater. Disappointing lack of character by too many leaders. They did place our Nation at risk.

[songkokhitam]

I spoke with some of the US Navy guys stationed in KL, and they said Leonard company was the only company that can deliver, not just husbanding works but also when it come to the quality of food/ meals for the sailors he can offer the best (non can compete). I believe the problem was that Leonard cannot justify the amount of bill he charged the Navy, and maybe or perhaps he charged too much.. but yet still he delivered. I read the book, and I truly enjoy it. We need to see the 7th Fleet engage more Asian countries and not just put their eggs in one basket. They should rotate for port calls schedule to all the Asia's ports and not just Singapore or Japan.

[jwillsher]

A less known case of acquisition corruption is Darleen Druyun; still worth reading about.

[bmz]

Sounds like to me Fat Leonard got the job done. Not sure why that’s a problem

[jwillsher]

I work in Department of Defense acquisitions, and I really appreciated this interview.

[PlatosSauce]

I remember the sexual assault cases at the air force academy!!

[rainbowshulacorns]

You guys are off on “Ring of steel”. It was largely up to Force Protection condition dictated by 7th Fleet Command FP officer

[michellediamsaymendoza]

This is too much talking. Mention salt wives and end of story.