Dan Layug, Trading Classified Information, California 2014

Navy Petty Officer Sentenced for Trading Classified Info

A US Navy Petty Officer has been sentenced to 27 months in prison for accepting cash, consumer electronics and travel expenses from foreign defense contractor Glenn Defense Marine Asia (GDMA) in exchange for classified U.S. Navy information.

Dan Layug, 27, pleaded guilty to one count of conspiracy to commit bribery in May 2014 and is the first defendant to be sentenced in the bribery scheme involving Singapore-based GDMA, which provided port services to U.S. Navy ships in the Asia Pacific region and used bribery to obtain information to win and maintain contracts.

According to court documents, GDMA owner and CEO Leonard Francis and other GDMA employees enlisted the clandestine assistance of Layug and other U.S. Navy personnel to provide classified ship schedules and other sensitive Navy information.

GDMA allegedly overcharged the Navy under its contracts and submitted bogus invoices for tens of millions of dollars in port services.

In his plea agreement, Layug admitted that he accepted a $1,000 per month allowance from GDMA, plus luxury hotel stays for himself and others in Malaysia, Singapore, Indonesia, Hong Kong and Thailand. He also admitted that he sought consumer electronics from GDMA, including an iPad 3.

The NCIS, the DCIS and the Defense Contract Audit Agency are conducting the ongoing investigation. Trial Attorneys Brian Young and Lawrence Atkinson of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark W. Pletcher of the Southern District of California are prosecuting the case.

Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DoD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.

Defendant: Dan Layug

Criminal Charges: Conspiracy to commit bribery

City and State: San Diego, California

Exact Date: May 2014

Sentence: 27 months in prison

Dollar Amounts: $1,000 per month, tens of millions of dollars in port services

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