John F. Lehman, a former Navy Secretary and current adviser to Mitt Romney’s campaign, testifies before Congress in 2004.
Romney’s Big Navy Guru Made Millions From Building Ships
By David Axe
October 23, 2012 | 1:00 pm
Republican presidential candidate Mitt Romney has vowed to boost the size of the Navy by roughly 15 percent as part of a broader defense buildup. “Our Navy is smaller now than at any time since 1917,” he complained in Monday night’s debate. “That’s unacceptable to me.”
But for one of Romney’s most important advisers on Navy issues, a man who oversaw a massive naval expansion for Pres. Ronald Reagan, there’s more at stake than U.S. national security. John Lehman, an investment banker and former secretary of the Navy, has strong and complex personal financial ties to the naval shipbuilding industry. He has profited hugely from the Navy’s slow growth in recent years — raising the prospect that he could make even more if Romney takes his advice on expanding the fleet.
Lehman is the founder and chairman of J.F. Lehman & Company, a private equity firm. He also sits on several corporate boards.
Lehman invested in a government-backed “Superferry” in Hawaii — a business that ultimately failed, but not before boosting the standing of Austal USA, an Alabama shipbuilder that constructed the ferry service’s ships. Austal USA’s rising fortunes in turn benefited international defense giant BAE Systems, which then bought up shipyards owned by Lehman in order to work more closely with Austal USA.