Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY - Sept. 12, 2017
SAN DIEGO - A former U.S. Navy Commander was sentenced yesterday to 18 months in prison for lying to investigators to conceal his illicit decades-long relationship with Leonard Glenn Francis, the foreign defense contractor at the center of a colossal bribery and fraud scandal.
David Kapaun, former U.S. Navy Commander and later the civilian Deputy Chief of Staff at Special Operations Command, Pacific, at Camp Smith, Aiea, Hawaii, pleaded guilty to one count of making false statements on June 6, 2017, admitting that he lied on his security clearance application forms regarding his relationship with Francis, owner of Singapore-based Glenn Defense Marine Asia. The company provided ship husbanding services such as trash and sewage removal, food, water, security and fuel to U.S. Navy ships.
According to the government’s sentencing memo, Kapaun received at least as much as $50,000 in illicit goods and services from Francis since 2001. The long history between the two men involved many late nights of partying at nightclubs and karaoke bars, fine dining, and prostitutes - all paid for by Francis. For his part, Kapaun performed numerous and varied official acts for GDMA, including providing classified schedules of U.S. Navy ship port visits. Acknowledging the staggering breadth and duration of Kapaun’s activity on GDMA’s behalf, Francis referred to him as GDMA’s “comms center, strategist, and ops center."
Conscious of the illegality of his actions, Kapaun was always careful to conceal the nature of his relationship with and his receipt of things of value from Francis. Kapaun, for example, created a fake name, Dave McIntosh, and a sham email address to disguise his identity and avoid the detection of law enforcement. Kapaun and Francis also used coded terminology when discussing their illicit activities.
In addition to the 18 months in prison, Kapaun was also sentenced to pay a fine in the amounts of $25,000, as well as restitution to the U.S. Navy in the amount of $50,000 and perform 200 hours of community service work following his release.
“Today’s sentence underscores the breadth and scope of this unprecedented investigation," said Acting U.S. Attorney Alana W. Robinson. “We will continue to investigate and prosecute all who greedily feather their own beds in dereliction of the obligations to the United States."
Twenty-eight individuals, including 21 current and former Navy officials and five civilian defendants, plus GDMA, the corporation, have been charged so far as part of the massive fraud and bribery investigation. Nineteen of these defendants have pleaded guilty. Nine defendants await trial.
The Defense Criminal Investigative Service, Naval Criminal Investigative Service and the Defense Contract Audit Agency are investigating. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California, Assistant U.S. Attorney Ken Sorenson of the District of Hawaii, and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case.
Anyone with information relating to fraud or corruption 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 Case Number: CR-1700333-SOM
David Michael Kapaun Age 58 Wahiawa, HI
SUMMARY OF CHARGES
False Statements, in violation of 18 U.S.C. § 1001
Maximum Penalty: Five years in prison
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Source: U.S. Department of Justice, Office of the United States Attorneys
