Singapore-based contractor admits plot to defraud US Navy of millions

A manager of a Singapore-based company accused of cheating the US Navy out of millions of dollars has pleaded guilty in the case.

Alex Wisidagama entered a guilty plea in US federal court on Tuesday to one count of conspiracy to defraud the United States with respect to claims.

Wisidagama is the former general manager of global government contracts for Glenn Defence Marine Asia (GDMA), which serviced ships in the Pacific. He admitted knowing that GDMA submitted fictitious claims resulting in losses to the navy of more than US$20 million.

GDMA submitted hundreds of false bids, allegedly from competitors for items ranging from fuel to rubbish collection to the navy, according to the complaint.

Wisidagama is the cousin of Leonard Glenn Francis, the GDMA chief executive known in military circles as "Fat Leonard".

The two were arrested last year in San Diego during a sting operation by military investigators who said Francis offered holidays and prostitutes to naval officers in exchange for information and advice, so GDMA could overbill the US Navy.