As a lieutenant commander in 2008, Stephen Shedd never considered reporting the gifts and favors that he said some of the senior staff of the Navy’s Seventh Fleet exchanged with the military contractor known as “Fat Leonard.”
“We had an understanding of mutually assured destruction,” Shedd testified Thursday to a jury. “We’d all go down in flames or we’d all be protected.” Officially, the ship and its command staff were making port calls to improve naval relations with five foreign allies. Unofficially, it was a chance for some of the highest-ranking officers to party large with Francis — attending gourmet dinners, staying in posh hotel suites and socializing, often privately, with prostitutes on his dime, Shedd said.
With the important guests handled, Francis turned to Shedd, motioned to the remaining women in the suite and said “Go ahead if you want,” Shedd recalled. So he did, grabbing a woman by the hand and having sex with her in his own room, he said. The party continued the following evening in the same vein, this time with 10 to 15 women. Lausman was not present, Shedd said. But he acknowledged he doesn’t remember much more. “I was pretty intoxicated,” he testified.
The last outing Shedd organized was the fall of 2008, days before he was set to transfer out of the Seventh Fleet for a post in Tennessee. It was karaoke bar-hopping in Tokyo with Dolan, Francis and Herrera, he said. At the advice of another officer, Shedd was training Herrera to take over his Francis coordination duties, Shedd said.
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