The felony convictions of four former Navy officers in one of the biggest bribery cases in military history were vacated Wednesday following allegations of prosecutorial misconduct, in the latest episode of a bribery case tied to a defense contractor.
Last year after the trial, U.S. District Judge Janis Sammartino had ruled the lead federal prosecutor committed “flagrant misconduct” by withholding information from defense lawyers, but concluded at the time that it did not suffice to dismiss the case.
During a sentence hearing in San Diego federal court on Wednesday, assistant U.S. Attorney Peter Ko admitted to “serious issues” involving prosecutorial misconduct, and requested the judge to vacate the officers’ felony convictions.
Judge Sammartino agreed and allowed the four men to plead guilty to one misdemeanor each. They were given a $100 fine—no prison, probation or restitution.
According to the judge, the misconduct by prosecutors from the U.S. Attorney’s Office in San Diego “can only be described as outrageous.”
“The only reasonable inference is that the allegations cannot and will not be justified or ever defended by the government,” she added.
Since their conviction 14 months ago, attorneys of the four officers argued for a mistrial on account of what they described as a “dizzying array of government misconduct.”
Defense attorney Todd Burns and his team filed hundreds of pages outlining how the trial was rife with misconduct including prosecutors hiding evidence, ignoring false testimony, and concealing facts that put into question the credibility of key witnesses.
“The government has a massive amount of power to coerce things, and that power is still evident in this context,” Mr. Burns said.
Mr. Ko, who was brought on after the trial last year, said that his office does not agree with every allegation made by the defense lawyers, but admitted significant mistakes were made.
“There were pretty obviously serious issues that affect our ability to go forward [in defending the convictions],” he told the judge, according to the San Diego Union-Tribune.
The four officers who had their convictions vacated—Capts. David Newland, James Dolan and David Lausman, and Cmdr. Mario Herrera—had been found guilty last year of accepting bribes from a foreign defense contractor named Leonard Francis and his company, Glenn Defense Marine Asia.
On Wednesday, three of the men pleaded guilty to one count each of disclosing information to Mr. Francis. Capt. Lausman pleaded guilty to a charge of destruction of government property for smashing a hard drive with a hammer.
Mr. Burns said his client, Capt. Dolan, agreed to plead guilty to a misdemeanor to end a decade of “bleeding legal fees” and enduring stress on his family.
The men spent more than a year asking for a retrial. Of the more than two dozen defendants, theirs was the only case allowed to go to retrial. The jury deadlocked and reached no verdict on charges against a fifth defendant, retired Rear Adm. Bruce Loveless, and prosecutors later dropped those charges.
At least 32 people were charged in connection to the scandal, most of whom have pleaded guilty. Nearly two dozen have been already convicted and sentenced on various fraud and corruption charges, including service men and contractors; more than 100 have faced internal Navy discipline.
Several others are awaiting sentencing next month. It’s not clear whether Wednesday’s ruling could jeopardize those cases.
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Francis’s company had for decades supplied ships of the Navy’s 7th Fleet in the Eastern Pacific. Investigators say he used his company to bribe officers so he could overcharge ship supplies and charge for fake services at Southeast Asian ports he operated in.
According to prosecutors, Mr. Francis bilked the Navy out of more than $35 million.
Mr. Francis was arrested at a San Diego hotel in September 2013 and admitted to buying off dozens of top-ranking officers with alcohol, prostitutes, lavish parties, and various gifts.
Three weeks before the Malaysian defense contractor faced sentencing last year, Mr. Francis made an escape, snipping off his ankle monitor and fleeing the San Diego residence where he had been under house arrest.
At the time, the prosecution faced criticism for allowing Mr. Francis to not be held behind bars. Mr. Francis was later captured in Venezuela, where he remains in custody.
The case, which delved into salacious details about service members cheating on their wives and seeking out prostitutes, was an embarrassment to the Pentagon.
The U.S. attorney’s office handled the prosecution, offering independence from the military justice system.
The Associated Press contributed to this article.
