Colorado Springs

Active COS Commander arrested in connection with international bribery scandal

COLORADO SPRINGS - A Navy officer from Colorado Springs has been indicted on federal charges after being accused of playing a part in a massive international bribery scandal.

Nine people were arrested on Tuesday including active Commander Stephen Shedd from Colorado Springs.

The indictment claims he's one of many high-ranking navy officials who gave up classified information to foreign defense contractor Leonard Francis, the former Chief Executive Officer (CEO) of Glenn Defense Marine Asia (GDMA), in exchange for luxury travel, elaborate dinners, and services from prostitutes.

The other eight arrested on Tuesday include: 

  • David Newland, 60, of San Antonio, Texas
  • James Dolan, 58, of Gettysburg, Penn.
  • David Lausman, 62, of The Villages, Fla.
  • Donald Hornbeck, 56, of the United Kingdom.  
  • Colonel Enrico Deguzman, 48, of Honolulu, Hawaii
  • Retired Chief Warrant Officer Robert Gorsuch, 48, of Virginia Beach, Va.
  • Retired Rear Admiral Bruce Lovelace, 48, of San Diego, Calif.,  
  • Active duty Commander Mario Herrera, 48, of Helotes, Texas.

They face various charges including bribery, conspiracy to commit bribery, honest services fraud, obstruction of justice and making false statements to federal investigators when confronted about their activity.  

So far, an additional 11 Navy officers have been charged for their involvement in this conspiracy. Those include:

  • Admiral Robert Gilbeau
  • Retired Captain Michael Brooks
  • Commander Jose Luis Sanchez
  • Captain Daniel Dusek
  • Former Department of Defense civilian employee Paul Simpkins,  
  • Commander Michael Misiewicz
  • Lieutenant Commander Gentry Debord
  • Lieutenant Commander Todd Malaki
  • Petty Officer First Class Daniel Layug,
  • Naval Criminal Investigative Service Supervisory Special Agent John Beliveau
  • Commander Bobby Pitts

According to the indictment, the scheme is said to have cost the Navy and U.S. taxpayers tens of millions of dollars.

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