Is the MOSFET really turning off? What is the gate source voltage? Check if it's really pulling down the gate-source completely to 0V. Do you really have the two GND pins disconnected?
Schottky leakage is pretty high, yes, but maybe only 10uA @ 25C here, which is probably not enough to turn on the LED noticeably. I can't remember, off hand, how efficient the high efficiency greens are..
Just remove the top diode and check.