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Elizabeth Loving was on a mission of seduction.The executive assistant at shipbuilder Austal USA planned to meet Navy Capt. Jeff Riedel at a hotel east of Mobile, Ala., the evening of Jan. 24, 2012. From there, she was going to hop into his rental car to go to an out-of-the-way restaurant 45 minutes away in Gulf Shores, where prying eyes wouldn’t spot them together.Loving said her orders were clear: She needed risque photographs with Riedel so the company president could use them as leverage over the officer who oversaw acquisition for the troubled littoral combat ship program, which Austal had been awarded a $3.5 billion contract to build in 2010.The ship was under intense scrutiny in Washington because of mounting costs, design and construction problems, concerns over the vessel’s survivability in combat and its ability to perform its missions effectively. The speedy ships, designed to operate in shallow water, are a major component of the Navy’s future, especially in Asia.Riedel was in Alabama to help review the program.But instead of resolving the problems, Riedel saw his 26-year military career quickly unravel. Riedel and Loving spent that night in his hotel room, although they said nothing happened. Both lost their jobs within days. Austal USA President Joe Rella resigned a few months later.(remainder snipped)
