{"id":42519,"date":"2019-07-30T19:28:41","date_gmt":"2019-07-30T19:28:41","guid":{"rendered":"https:\/\/one.sightlinemg.com\/navytimes\/uncategorized\/2019\/07\/30\/korean-fat-leonard-feds-probe-new-us-navy-corruption-case-in-asia\/"},"modified":"2026-08-07T22:52:46","modified_gmt":"2026-08-07T22:52:46","slug":"korean-fat-leonard-feds-probe-new-us-navy-corruption-case-in-asia","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/navytimes\/news\/2019\/07\/30\/korean-fat-leonard-feds-probe-new-us-navy-corruption-case-in-asia\/","title":{"rendered":"Korean Fat Leonard? Feds probe new US Navy corruption case in Asia"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2013 The Justice Department has filed corruption charges against the head of a Busan, Korea,-based husbanding services provider in a case with unmistakable echoes of the<a href=\"https:\/\/www.defensenews.com\/pentagon\/2016\/06\/26\/he-was-a-crook-but-he-was-our-crook\/\" target=_blank> Fat Leonard scandal<\/a> that has rocked the Navy since the investigation was revealed in 2013.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Sung-Yol \u201cDavid\u201d Kim, head of DK Marine Service, has been charged with one count of conspiracy and one count of bribery, according to documents filed with the Eastern District of Michigan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The investigation has already netted the former civilian master of the dry cargo ship Charles Drew, a <a href=\"https:\/\/www.defensenews.com\/naval\/2019\/01\/16\/facing-a-sealift-capacity-collapse-the-navy-hones-in-on-a-strategy-for-new-auxiliary-ships\/\" target=\"_blank\">Military Sealift Command<\/a> ship that operates in the Pacific. James Driver pled guilty July 16 to one count of conspiracy, according to court documents, and is awaiting sentencing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s unclear how deep the alleged fraud ran but it is clear that, DK Marine Services performed extensive work for both Military Sealift Command and US Navy assets, including the carriers Reagan and George Washington, the minesweeper Chief, the destroyer Sterett and numerous other support ships, according to images posted on <a href=\"http:\/\/www.dkmarinesvc.com\/bbs\/board.php?bo_table=portfolio_01&#038;page=6&#038;page=1\">DK Marine Service\u2019s website<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The news that another husbanding services provider in Asia is at the center of a federal corruption case is a hammer-blow to the Navy, which has been struggling for years as dozens of its officers, including several senior leaders, have come under scrutiny for their dealings with Glenn Defense Marine Asia and its gregarious, corpulent chief executive Leonard \u201cFat Leonard\u201d Francis.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Husbanding services providers act as fixers for the Navy, contracting with the service to arrange tugs, fresh water and sewer service, cable and internet, trash pickup and various other essential services ships require when in port. Francis was accused of ingratiating himself with Navy officers with everything from golf junkets and prostitutes to Broadway musical tickets to secure contracts that he\u2019d then overcharge for.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/naval\/2017\/03\/14\/retired-admiral-8-others-charged-in-latest-fat-leonard-indictments\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"228\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/radm-bruce-loveless.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Retired admiral, 8 others charged in latest &#8216;Fat Leonard&#8217; indictments<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Retired US Navy Rear Adm. Bruce Loveless, four retired-Navy captains, a Marine colonel and three other individuals were arrested and charged Tuesday in the latest indictments related to the Glenn Defense Marine Asia (GDMA) bribery scandal. The investigation is also known as the &quot;Fat Leonard&quot; case, after a nickname for GDMA\u2019s former chief executive officer, Leonard Francis.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\"><b>How Deep?<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Kim indictment seems to outline a somewhat lower-level scam. The indictment alleges that the DK Marine executive gave Driver, at various times, high-speed rail tickets to visit an unnamed associate in a Korean hospital, a hotel room for him and his family, promises of a job in exchange for classified ship schedules, competitors\u2019 pricing information and other information. Driver used his personal email to communicate with Kim to avoid scrutiny, DoJ alleges.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But investigators also seem to be circling around the former director of operations for MSC\u2019s Busan hub, who is labeled as a co-conspirator but is unnamed in Kim\u2019s indictment. Labeled \u201cco-conspirator 1,\u201d the unnamed operations director of Military Sealift Command Office Busan worked for eight years in the office between 2006 and 2014.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In Driver\u2019s indictment, \u201cco-conspirator 1\u201d is described as being \u201cresponsible for directing all aspects of MSC ships\u2019 arrival, logistics support, and departure from port.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ships send out the logistics request messages, known as LOGREQs, ahead of port visits that request the services that ultimately are arranged by husbanding agents. According to Kim\u2019s indictment, the Justice Department alleges that Kim instructed Driver not to loop in the contracting agency in Japan, Fleet Logistics Center Yokosuka, formerly known as Fleet and Industrial Supply Center Yokosuka or \u201cFISC,\u201d but to send it directly to MSCO Busan\u2019s ops director, known as \u201cco-conspirator 1.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Quoting an email between Kim and Driver, the indictment reads \u201cWhen submitting log reg. Do no Cc fisc. Only [CC-1&#8217;s first initial] and your other msc reps. You know what I mean. Then [CC-1&#8217;s first initial] will handle the rest.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is unclear how much business was conducted between DK Marine and the Navy during the time \u201cco-conspirator 1\u201d was director of operations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Military Sealift Command would not comment on the case nor the scope of the investigation, directing questions to the Department of Justice. MSC did, however, confirm that Driver is a retired civilian master. Emails to Kim and his business partners at DK Marine were not answered by press time.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Department of Justice is probing new allegations  of husbanding services corruption in Asia in a case with strong echoes of the Fat Leonard scandal that has rocked the Navy for more than half a decade.<\/p>\n","protected":false},"author":7,"featured_media":77602,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":12,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[101,23,88,12,26],"tags":[],"coauthors":[3231],"class_list":["post-42519","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-home","category-left-column","category-news","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"GZLAJPSCVFEKDJF6Z7RFIFY2EY","arc_canonical_url":"\/naval\/2019\/07\/30\/korean-fat-leonard-feds-probe-new-us-navy-corruption-case-in-asia\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Korean Fat Leonard? Feds probe new US Navy corruption case in Asia - Navy Times<\/title>\n<meta name=\"description\" content=\"The Department of Justice is probing new allegations of husbanding services corruption in Asia in a case with strong echoes of the Fat Leonard scandal that has rocked the Navy for more than half a decade.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Korean Fat Leonard? 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