!Camp Arifjans Corruption Indicted and Convicted

For Immediate Release February 17, 2010 U.S. Department of Justice Office of Public Affairs

(202) 514-2007/TDD (202) 514-1888

Former U.S. Military Contractor Pleads Guilty to Bribery and Money Laundering Scheme Related to Defense Department Contracts in Support of Iraqi War Defendant to Forfeit $15,757,000 to the U.S. Government

WASHINGTON—Former military contractor Terry Hall, 43, of Snellville, Ga., pleaded guilty today to conspiracy to pay more than $3 million in bribes to U.S. Army contracting officials stationed at Camp Arifjan, an Army base in Kuwait, and to money laundering conspiracy, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.

Terry Hall was indicted on May 6, 2009, along with U.S. Army Major Eddie Pressley, 39, and his wife, Eurica Pressley, 37, both of Harvest, Ala. According to court documents filed in U.S. District Court for the Northern District of Alabama, Hall’s companies received approximately $21 million between 2005 and 2007 in connection with contracts his companies received. To obtain the contracting business and facilitate unlawful payments by other contractors, Hall admitted he made more than $3 million in unlawful payments and provided other valuable items and services to U.S. Army contracting officials stationed at Camp Arifjan, including U.S. Army Major Eddie Pressley, and former Majors John Cockerham, James Momon, and Christopher Murray, among others.

According to court documents, Hall owned and operated several companies, including Freedom Consulting and Catering Co., (FCC) and Total Government Allegiance (TGA), which provided goods and services to the U.S. Department of Defense (DoD) in connection with Operation Iraqi Freedom. Hall’s companies received a Blanket Purchase Agreement (BPA) to deliver bottled water in Iraq and a contract to construct a security fence in Kuwait.

A BPA is an indefinite delivery, indefinite quantity contract by which the DoD agrees to pay a contractor a specified price for a particular good or service. Based on a BPA, the DoD is permitted to order the supplies on an as-needed basis, and the contractor is bound by the price agreed upon in the BPA. The term for this type of order by the DoD is a “call.”

The case against Hall arose out of a wide-ranging investigation of corruption at the Camp Arifjan contracting office. To date, eight individuals including Hall have pleaded guilty for their roles in the bribery scheme.

On Dec. 2, 2009, former Cockerham was sentenced to 210 months in prison and ordered to pay $9.6 million in restitution. According to court documents, Cockerham arranged for Hall’s companies to receive bottled water calls worth more than $2.6 million, as a result of which Hall paid Cockerham approximately $800,000.

According to court documents, Momon arranged for Hall’s companies to receive bottled water calls worth approximately $6.4 million, as a result of which Hall paid Momon more than $300,000. Momon pleaded guilty on Aug. 13, 2008, to receiving bribes from various contractors at Camp Arifjan, including Hall, and is awaiting sentencing.

Also according to court documents, Murray arranged for Hall to receive contracts to construct security fences at Camp Arifjan, as a result of which Hall paid Murray approximately $30,000. Murray pleaded guilty to receiving bribes from various contractors at Camp Arifjan, including Hall, and making a false statement. He was sentenced on Jan. 8, 2009, to 57 months in prison and ordered to pay $245,000 in restitution.

The case against Eddie Pressley and his wife, Eurica Pressley, is scheduled for trial on April 5, 2010. The indictment alleges that the Pressleys received more than $2.8 million in money and other valuable items from Hall, in exchange for Eddie Pressley’s agreement to take official actions to benefit Hall. Eurica Pressley, at her husband’s request, allegedly arranged for an entity named EGP Business Solutions Inc., (EGP) to be incorporated, opened a bank account in the name of EGP, and opened bank accounts in her name in the United States, Dubai, United Arab Emirates and the Cayman Islands, all in order to receive the bribe payments.

The charge of bribery conspiracy carries a maximum prison sentence of five years and a $250,000 fine. The money laundering conspiracy carries a maximum prison sentence of 20 years and a $250,000 fine. According to the court documents, Hall will forfeit $15,757,000 to the U.S. government.

The case is being prosecuted by Trial Attorneys Peter C. Sprung and Edward J. Loya Jr. of the Criminal Division’s Public Integrity Section. The case is being investigated by special agents of the Special Inspector General for Iraq Reconstruction, the Army Criminal Investigation Command, Defense Criminal Investigative Service, the U.S. Immigration and Customs Enforcement, the Internal Revenue Service, and the FBI.

The National Procurement Fraud Task Force, created in October 2006 by the Department of Justice, was designed to promote the early detection, identification, prevention, and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs.

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For Immediate Release February 18, 2010 U.S. Department of Justice Office of Public Affairs

(202) 514-2007/TDD (202) 514-1888

U.S. Army Contracting Official Charged with Bribery and Related Crimes in Off-Post Housing Scheme

WASHINGTON—A U.S. Army contracting official was charged today with bribery and unlawful salary supplementation in connection with two schemes to solicit more than $30,000 in bribes from an Egyptian businessman in Kuwait, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Neil H. MacBride of the Eastern District of Virginia.

William Rondell Collins, 46, of Bartlett, Tenn., was charged today in a four-count indictment, returned by a federal grand jury in the Eastern District of Virginia, with two counts of soliciting and accepting bribes as a public official and two counts of unlawful salary supplementation from a source other than the U.S. government.

According to the indictment, the U.S. Army Area Support Group-Kuwait (ASG-KU) is responsible for maintaining Camp Arifjan, a U.S. military installation providing support for operations in Afghanistan, Iraq and other locations in the Southwest Asian Theater. As part of those responsibilities, the ASG-KU maintains an off-post housing office in downtown Kuwait City, which procures, leases and supervises off-post housing for government employees and military service members stationed at Camp Arifjan. According to the indictment, Collins was employed in the ASG-KU’s off-post housing office as a housing specialist responsible for supervising private contractors and procuring off-post apartment rentals.

The indictment alleges that, in January 2009, a company owned by an Egyptian businessman was awarded a fixed-price U.S. government contract to provide maintenance services for off-post housing managed by Collins and the ASG-KU off-post housing office.

According to the indictment, in July 2009, Collins allegedly solicited a monthly fee of approximately $1,400 from the Egyptian businessman in return for Collins’s agreement to provide favorable and preferential treatment and advice to the Egyptian businessman’s company on the performance and renewal of the contract. Collins also allegedly agreed to conceal from his supervisors the existence and nature of the monthly fee arrangement. According to the indictment, Collins allegedly accepted five $1,400 payments from the Egyptian businessman between July and December 2009.

The indictment also alleges that, between July and December 2009, Collins solicited a monthly payment of approximately $962 from the Egyptian businessman in exchange for drafting and submitting an inflated off-post apartment lease to the United States for approval. According to the indictment, Collins allegedly received approximately $5,775 from the Egyptian businessman on Dec. 13, 2009, representing a six-month advance on the scheme.

The bribery counts each carry a maximum penalty of 15 years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The unlawful salary supplementation counts each carry a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost.

The case is being prosecuted by Special Assistant U.S. Attorney Steve A. Linick, Deputy Chief of the Criminal Division’s Fraud Section; and Fraud Section Trial Attorneys James J. Graham and Ryan S. Faulconer. The investigation is being conducted by the FBI, the U.S. Army Criminal Investigative Division, the Defense Criminal Investigative Service, and members of the National Procurement Fraud Task Force and the International Contract Corruption Task Force (ICCTF).

The National Procurement Fraud Task Force, created in October 2006 by the Department of Justice, was designed to promote the early detection, identification, prevention, and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs.The ICCTF is a joint law enforcement agency task force that seeks to detect, investigate, and dismantle corruption and contract fraud resulting from U.S. Overseas Contingency Operations, including in Kuwait, Afghanistan, and Iraq.

The charges contained in the indictment are merely accusations and the defendant is presumed innocent until proven guilty at trial beyond a reasonable doubt.

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FOR IMMEDIATE RELEASE

Thursday, December 10, 2009

Former DOD Contracting Officer Sentenced to 110 Months in Prison for Filing False Tax Returns

WASHINGTON – A former civilian employee of the U.S. Department of Defense was sentenced today to 110 months in prison for filing false tax returns in which he failed to report more than $2.4 million in income, announced Assistant Attorney General of the Criminal Division Lanny A. Breuer and Assistant Attorney General of the Antitrust Division Christine A. Varney.

Tijani Ahmed Saani, 53, was also ordered to pay a $1.6 million fine and serve one year of supervised release following his prison term. Saani was also ordered to pay $816,485 in restitution to the Internal Revenue Service (IRS). Saani was sentenced in U.S. District Court for the District of Columbia by Judge Richard J. Leon.

Saani, a former resident of Kuwait City, Kuwait, and dual U.S./Ghanaian citizen, pleaded guilty on June 25, 2009, to five counts of filing false tax returns, one for each tax year from 2003 through 2007. According to court documents, Saani admitted failing to report at least $2.4 million in taxable income during this time, while he served in Kuwait as a contracting officer for the Department of Defense. According to the indictment to which Saani pleaded guilty, he worked on detail from 2002 until 2007 at Camp Arifjan, Kuwait. Saani also admitted he failed to report his ownership interest in foreign bank accounts in five different countries, including Ghana, Switzerland, the Jersey Channel Islands, the Netherlands and the United Kingdom. Saani used these accounts to help conceal his unreported income, and to send and receive wire transfers totaling more than $3.5 million.

This case is being prosecuted by Trial Attorneys Richard B. Evans and Kathryn H. Albrecht of the Criminal Division’s Public Integrity Section and Trial Attorneys Mark W. Pletcher, Emily W. Allen and Ryan Danks of the Antitrust Division’s National Criminal Enforcement Section. Assistance was also provided by the Criminal Division’s Office of International Affairs.

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The case is being investigated by IRS – Criminal Investigation, Army Criminal Investigation Division, Defense Criminal Investigative Service, U.S. Immigration and Customs Enforcement, the FBI and the Special Inspector General for Iraq Reconstruction.

Today’s sentencing is part of the Department’s ongoing investigation into procurement fraud in Iraq and Afghanistan. The Department’s National Procurement Fraud Initiative, announced in October 2006, is designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in contracting activity for national security and other government programs.

Anyone with information concerning bid rigging, bribery or other criminal conduct regarding

DOD contracts is urged to call the Defense Criminal Investigative Service at 800-424-9098 or [email protected]; Army Criminal Investigation Division at www.cid.army.mil; or the FBI a

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A 26-year veteran of the U.S. Army is the latest and highest-ranking officer to plead guilty in a contractor-corruption scandal rising out of the Iraq War.

Col. Kevin A. Davis, who retired from the military in 2005, has agreed to plead guilty next month in a U.S. court in Washington, D.C., according to federal court documents.

Col. Davis is charged with taking more than $50,000 in bribes to help a Kuwait-based contractor win a rigged bid to operate weapons warehouses in Iraq. Col. Davis then went to work for that same company, American Logistics Services, as a senior executive after leaving the military. Col. Davis later joined Lee Dynamics International, which was formed by George Lee, a U.S. citizen who also directed ALS.

LDI was banned from government service after being investigated in probes of defense-contract fraud in Iraq and Kuwait. Mr. Lee is under investigation, and officials say they will likely seek an indictment. LDI challenged the ban in court, but it was upheld. Mr. Lee's attorney, Gerard N. Casale Jr. of Troy Gould in Los Angeles, says his client denies any wrongdoing by both himself and any companies he was involved with.

Col. Davis declined through his attorney, David Schertler, to speak about the case. He is expected to cooperate with federal investigators after his guilty plea is accepted, according to his lawyer.

Another officer expected to plead guilty next month is Capt. Markus E. McClain, according to federal officials familiar with the investigation. The Mississippian is charged with taking $15,000 to help a Kuwait-based firm secure a contract to provide vehicles to military convoys supplying bases in Iraq.

http://online.wsj.com/�

http://online.wsj.com/�

Capt. McClain, 31, didn't respond to requests for comment. He served in Kuwait in 2004 after being called to active duty from the Mississippi Army National Guard. A guard spokesman said he resigned from his unit on March 1.

Col. Davis, 52 years old, is the highest-ranking officer to be implicated in a scheme known among federal investigators as the Cockerham Case, for Major John Cockerham, who pleaded guilty last year to receiving more than $9 million in illegal payments for defense contracts, primarily to service the Camp Arifjan military base in Kuwait.

Early in the probe, Major Gloria Dean Davis, came under suspicion by investigators in the case. She committed suicide in Baghdad in December 2006, hours after confirming she received more than $225,000 from the same contractor Col. Davis later joined as a civilian, LDI.

The two officers weren't related, however investigators familiar with the case say they were involved romantically.

Capt. McClain reported to Maj. Davis in 2004.

The cases of Col. Kevin Davis and Maj. Gloria Davis have a link with others being investigated in the Cockerham Case to contracting firms operated by African-American civilians in the U .S. and Middle East, according to officials with knowledge of the probe. Court filings alleged the military officers conspired with these contractors to share information and rig bids through the U.S. Army contracting command at Camp Arifjan. Investigators allege African-American officers usually recruited from the ranks other African-American soldiers to participate in the ring, and targeted minority-owned contracting firms to solicit bribes from. Not everyone implicated in the case is an African-American, although virtually all of the more than two dozen individuals named in the case thus far are.

According to the indictment against Col. Davis, he was a senior contracting officer based in Baghdad in 2004 when he conspired with an American citizen to provide inside information on the awarding of a $8.2 million weapons-warehouse contract. The civilian is named only as Person One in court filings, however federal investigators have confirmed the citizen is Mr. Lee, the LDI founder.

Court filings allege that in exchange for helping Mr. Lee win the warehouse contract, Col. Davis received a round-trip airline ticket to travel to Venice, Italy on vacation. He later accepted a $10,000 first-class ticket from Mr. Lee to fly to the U.S. on leave during the summer of 2004, according to the court filing.

In November 2004, Col. Davis accepted a $50,000 cash payment from Mr. Lee, and later took a job at Mr. Lee's company, according to the court filing.

"Kevin Davis's criminal activity began when he was in uniform," said one federal official familiar with the investigation. The official said that as many as 16 officers may ultimately be charged in the Cockerham Case—and a total of 60 suspects will be charged, including civilians.

A 26-year veteran of the U.S. Army is the latest and highest-ranking officer to plead guilty in a

contractor-corruption scandal rising out of the Iraq War.

Col. Kevin A. Davis, who retired from the military in 2005, has agreed to plead guilty next

month in a U.S. court in Washington, D.C., according to federal court documents.

Col. Davis is charged with taking more than $50,000 in bribes to help a Kuwait-based contractor

win a rigged bid to operate weapons warehouses in Iraq. Col. Davis then went to work for that

same company, American Logistics Services, as a senior executive after leaving the military.

Col. Davis later joined Lee Dynamics International, which was formed by George Lee, a U.S.

citizen who also directed ALS.

LDI was banned from government service after being investigated in probes of defense-contract

fraud in Iraq and Kuwait. Mr. Lee is under investigation, and officials say they will likely seek

an indictment. LDI challenged the ban in court, but it was upheld. Mr. Lee's attorney, Gerard N.

Casale Jr. of Troy Gould in Los Angeles, says his client denies any wrongdoing by both himself

and any companies he was involved with.

Col. Davis declined through his attorney, David Schertler, to speak about the case. He is

expected to cooperate with federal investigators after his guilty plea is accepted, according to his

lawyer.

Another officer expected to plead guilty next month is Capt. Markus E. McClain, according to

federal officials familiar with the investigation. The Mississippian is charged with taking

$15,000 to help a Kuwait-based firm secure a contract to provide vehicles to military convoys

supplying bases in Iraq.

http://online.wsj.com/

http://online.wsj.com/

Capt. McClain, 31, didn't respond to requests for comment. He served in Kuwait in 2004 after

being called to active duty from the Mississippi Army National Guard. A guard spokesman said

he resigned from his unit on March 1.

Col. Davis, 52 years old, is the highest-ranking officer to be implicated in a scheme known

among federal investigators as the Cockerham Case, for Major John Cockerham, who pleaded

guilty last year to receiving more than $9 million in illegal payments for defense contracts,

primarily to service the Camp Arifjan military base in Kuwait.

Early in the probe, Major Gloria Dean Davis, came under suspicion by investigators in the case.

She committed suicide in Baghdad in December 2006, hours after confirming she received more

than $225,000 from the same contractor Col. Davis later joined as a civilian, LDI.

The two officers weren't related, however investigators familiar with the case say they were

involved romantically.


The cases of Col. Kevin Davis and Maj. Gloria Davis have a link with others being investigated

in the Cockerham Case to contracting firms operated by African-American civilians in the U .S.

and Middle East, according to officials with knowledge of the probe. Court filings alleged the

military officers conspired with these contractors to share information and rig bids through the

U.S. Army contracting command at Camp Arifjan. Investigators allege African-American

officers usually recruited from the ranks other African-American soldiers to participate in the

ring, and targeted minority-owned contracting firms to solicit bribes from. Not everyone

implicated in the case is an African-American, although virtually all of the more than two dozen

individuals named in the case thus far are.

According to the indictment against Col. Davis, he was a senior contracting officer based in

Baghdad in 2004 when he conspired with an American citizen to provide inside information on

the awarding of a $8.2 million weapons-warehouse contract. The civilian is named only as

Person One in court filings, however federal investigators have confirmed the citizen is Mr. Lee,

the LDI founder.

Court filings allege that in exchange for helping Mr. Lee win the warehouse contract, Col. Davis

received a round-trip airline ticket to travel to Venice, Italy on vacation. He later accepted a

$10,000 first-class ticket from Mr. Lee to fly to the U.S. on leave during the summer of 2004,

according to the court filing.

In November 2004, Col. Davis accepted a $50,000 cash payment from Mr. Lee, and later took a

job at Mr. Lee's company, according to the court filing.

"Kevin Davis's criminal activity began when he was in uniform," said one federal official

familiar with the investigation. The official said that as many as 16 officers may ultimately be

charged in the Cockerham Case—and a total of 60 suspects will be charged, including civilians.

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FOR IMMEDIATE RELEASE Wednesday, April 21, 2010



Army Sergeant Pleads Guilty to Accepting $1.4 Million inIllegal Gratuities Related to Military Dining Contracts in

Kuwait

A U.S. Army sergeant pleaded guilty today to accepting approximately $1.4 million in illegalgratuities from private contractors during his deployment to Kuwait in 2002 and 2003, announcedAssistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Jeffrey B.Lang of the Central District of Illinois.

Ray Scott Chase, 42, pleaded guilty today before U.S. Magistrate Judge John A. Gorman in theCentral District of Illinois to a criminal information charging him with accepting illegal gratuities,structuring monetary transactions and making false statements.

According to court documents, Chase was a sergeant first class during his deployment to Kuwaitfrom January 2002 through December 2003. Chase served as the contracting officer’srepresentative and the non-commissioned officer in charge of the military dining facility at U.S.Central Command at Camp Doha, Kuwait. During 2003, Chase also served as thenon-commissioned officer in charge for the military dining facility at Camp Arifjan, Kuwait. Chasesupervised the food procurement, preparation and service operations at Camp Doha and CampArifjan. As a part of his official duties, Chase also coordinated orders for certain blanket purchaseagreements the U.S. Army had with various private contractors to provide supplies and services toboth of those dining facilities.

During today’s court proceeding and according to court documents, Chase admitted that he receivedapproximately $1.4 million from private contractors for official acts he performed and was going toperform in 2002 through the end of 2003. According to court documents, he was paid by privatecontractors that included Tamimi Global Company Ltd., LaNouvelle General Trading & ContractingCorp., and another unnamed company.

In addition to accepting the illegal gratuities, Chase admitted that after he returned to the UnitedStates in 2004, he structured various financial transactions to avoid currency transaction reportingrequirements. Chase also admitted at today’s hearing that he made false statements wheninterviewed by federal authorities in February 2007.

At sentencing, scheduled for Aug. 6, 2010, before U.S. District Judge Joe B. McDade, Chase faces amaximum sentence of five years in prison. Chase has agreed to forfeit assets traceable to theproceeds of his crimes.

This case is being prosecuted by Assistant U.S. Attorney Matthew J. Cannon of the Central Districtof Illinois and Trial Attorney Joseph A. Capone of the Criminal Division’s Fraud Section. The case isbeing investigated by the Army Criminal Investigations Division; the Defense CriminalInvestigative Service; the FBI; the Internal Revenue Service, Criminal Investigations Division; andmembers of the National Procurement Fraud Task Force and the International Contract CorruptionTask Force (ICCTF). The U.S. Attorney’s Office for the District of Kansas also provided assistance inthe case.

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Case File

An investigation targeting an Army major at Fort SamHouston is the largest bribery scandal to come out ofthe war in Iraq. It is one of 83 criminal probes by thePentagon. Highlights of the case:

Mid-December 2006: Agents probing corruption atCamp Arifjan, Kuwait, question Army Maj. Gloria D.Davis. She is found dead a day after admitting takingbribes from contractors and confirming agents'suspicions about Maj. John L. Cockerham and others.Davis is second officer to be found dead sinceSeptember 2006 amid bribery probes.

Dec. 21, 2006: Cockerham home in the 500 block ofGraham Road on Fort Sam Houston is raided. Agentsfind evidence they say shows Cockerham had received$9.6 million in bribes while he was stationed at CampArifjan in 2004 and 2005, and that he was expecting$5.4 million more.

Feb. 21-22, 2007: Agents freeze $172,000 in a bankaccount in Detroit linked to Megde 'Mike' Ayesh Ismail,who allegedly delivered bribes to Cockerham.

July 23: Agents search Cockerham's new home, alsoon Graham Road, shortly after probe becomes public.Cockerham and his wife, Melissa — accused of pickingup bribes in Kuwait on behalf of her husband — arearrested. Agents find documents they say showed theCockerhams were telling contractors andco-conspirators to destroy evidence, lie to investigatorsand stall the probe.

July 25-26: Suburban Dallas home of Cockerham'ssister, Carolyn Blake, is raided, and she is arrested.

July 31: The Cockerhams are ordered held in jailwithout bond.

Aug. 2: Agents in San Antonio serve search warrantson safe deposit box, and two UPS mail boxes listed asaddresses for a 'church' John Cockerham claimed to bestarting.

Aug. 22: Cockerhams and Blake are indicted.

September 2007: Authorities recover $900,000 with

Web Posted: 12/19/2007 2:00 CST

A small U.S. company that landed a contract to supply U.S. troops in Kuwait andIraq with bottled water claims the deal was withdrawn because the companywouldn't pay bribes to a Fort Sam Houston-based Army major and anotherofficer he worked with.

Seraphim Transport Co. has sued the U.S. government, claiming Maj. John L.Cockerham awarded the company a $17 million blanket purchase agreement in2005 that was later yanked by another Army major, James Momon Jr., after acompany official would not agree to Cockerham's tit-for-tat proposal.

Michael Trevelline, a lawyer for Seraphim, said the company's two principalpartners invested a lot of money to start the business and were blindsided whenthe contract was terminated for no good reason.

"Both had to leave the country (Kuwait) under great financial stress, and nowthe U.S. government is just fighting this tooth and nail," Trevelline said.

The Justice Department's civil division has strategically avoided responding toany of the allegations made by Seraphim and has asked a judge to kill the caseon technical law issues, records show.

Seraphim, which is based in Washington state, is the second company to complain to the U.S. courts that a culture ofcorruption at Camp Arifjan, Kuwait, resulted in lost work.

This year, Congress demanded answers from Pentagon officialsabout an apparent pattern of graft, fraud and waste, largely atCamp Arifjan. The Pentagon ordered some 18,000 contracts to bereviewed, and all those handled by Cockerham are being poredover by criminal investigators.

Cockerham was a contracting officer from June 2004 to December2005 at Camp Arifjan, a base where military contracting officersfilled orders for basic supplies such as food, water, and latrine andgarbage service for U.S. troops in Iraq, Kuwait and Afghanistan.

Cockerham was arrested at Fort Sam in July and is jailed in SanAntonio on federal charges of taking $9.6 million in bribes andexpecting $5.4 million more for steering military supply contracts tocompanies that agreed to pay him kickbacks.

Cockerham was denied release on bail at a hearing Tuesday. Histrial is set for April.

Gulf Group Enterprises Co., a Kuwaiti business, sued thegovernment last year. It claims two of its contracts for Dumpster andbottled water service, legitimately obtained, were taken away byCockerham and given to companies willing to pay kickbacks.

Contract records completed by Cockerham show Gulf Group'sterminated contracts were immediately awarded to Kuwaiticompanies that were temporarily blackballed by the governmentover allegations of fraud or bribery: Jasmine International Tradingand Contracting Co., and Green Valley Co.

Michael Hightower, one of Seraphim's founding partners, alleged ina sworn affidavit that Cockerham sought kickbacks after summoninghim to the contracting office at Camp Arifjan on Dec. 19, 2005.Hightower could not be reached for comment, but in his affidavit, hesaid he went to sign the contract paperwork, and he describes anunusual encounter.

"Maj. Cockerham shook my hand and said, 'Now, what are yougoing to do for me,'" the affidavit said. "I thought it a joke andlaughed and left. I now know that it was no joke."

Hightower said that the next day, Cockerham reduced the contractaward from $17 million to $3.5 million and that the work was thensent to companies that agreed to pony up bribes. ThoughCockerham returned to Fort Sam Houston later that month,Hightower alleges the scheme continued because other officerswere on the take.

He alleged that Momon, a contracting specialist, was in on the

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Colonel to Admit Role in Iraq War Corruptionu.s.Army Veteran Is Accused of Taking More Than 550,000 in Bribes

A 26-year veteran of the U.S. Army is the latest and highest-ranking officer to plead guilty in acontractor-corruption scandal rising out of the Iraq War.

Col. Kevin A. Davis, who retired from the military in 2005, has agreed to plead guilty nextmonth in a U.S. court in Washington, D.C., according to federal court documents.

Col. Davis is charged with taking more than $50,000 in bribes to help a Kuwait-based contractorwin a rigged bid to operate weapons warehouses in Iraq. Col. Davis then went to work for thatsame company, American Logistics Services, as a senior executive after leaving the military.Col. Davis later joined Lee Dynamics International, which was formed by George Lee, a U.S.citizen who also directed ALS.

LDI was banned from government service after being investigated in probes of defense-contractfraud in Iraq and Kuwait. Mr. Lee is under investigation, and officials say they will likely seekan indictment. LDI challenged the ban in court, but it was upheld. Mr. Lee's attorney, Gerard N.Casale Jr. of Troy Gould in Los Angeles, says his client denies any wrongdoing by both himselfand any companies he was involved with.

Col. Davis declined through his attorney, David Schertler, to speak about the case. He isexpected to cooperate with federal investigators after his guilty plea is accepted, according to hislawyer.

Another officer expected to plead guilty next month is Capt. Markus E. McClain, according tofederal officials familiar with the investigation. The Mississippian is charged with taking$15,000 to help a Kuwait-based firm secure a contract to provide vehicles to military convoyssupplying bases in Iraq.

Capt. McClain, 31, didn't respond to requests for comment. He served in Kuwait in 2004 afterbeing called to active duty from the Mississippi Army National Guard. A guard spokesman saidhe resigned from his unit on March 1.

Col. Davis, 52 years old, is the highest-ranking officer to be implicated in a scheme knownamong federal investigators as the Cockerham Case, for Major John Cockerham, who pleadedguilty last year to receiving more than $9 million in illegal payments for defense contracts,primarily to service the Camp Arifjan military base in Kuwait.

Early in the probe, Major Gloria Dean Davis, came under suspicion by investigators in the case.She committed suicide in Baghdad in December 2006, hours after confirming she received morethan $225,000 from the same contractor Col. Davis later joined as a civilian, LDI.

The two officers weren't related, however investigators familiar with the case say they wereinvolved romantically.


The cases of Col. Kevin Davis and Maj. Gloria Davis have a link with others being investigatedin the Cockerham Case to contracting firms operated by African-American civilians in the U.S.and Middle East, according to officials with knowledge of the probe. Court filings alleged themilitary officers conspired with these contractors to share information and rig bids through theU.S. Army contracting command at Camp Arifjan. Investigators allege African-Americanofficers usually recruited from the ranks other African-American soldiers to participate in thering, and targeted minority-owned contracting firms to solicit bribes from. Not everyoneimplicated in the case is an African-American, although virtually all of the more than two dozenindividuals named in the case thus far are.

According to the indictment against Col. Davis, he was a senior contracting officer based inBaghdad in 2004 when he conspired with an American citizen to provide inside information onthe awarding of a $8.2 million weapons-warehouse contract. The civilian is named only asPerson One in court filings, however federal investigators have confirmed the citizen is Mr. Lee,the LDI founder.

Court filings allege that in exchange for helping Mr. Lee win the warehouse contract, Col. Davisreceived a round-trip airline ticket to travel to Venice, Italy on vacation. He later accepted a$10,000 first-class ticket from Mr. Lee to fly to the U.S. on leave during the summer of 2004,according to the court filing.

In November 2004, Col. Davis accepted a $50,000 cash payment from Mr. Lee, and later took ajob at Mr. Lee's company, according to the court filing.

"Kevin Davis's criminal activity began when he was in uniform," said one federal officialfamiliar with the investigation. The official said that as many as 16 officers may ultimately becharged in the Cockerham Case-and a total of 60 suspects will be charged, including civilians.

http://www.justice.gov/opa/pr/2009/December/09‐crm‐1328.html

Home » Briefing Room » Justice News



FOR IMMEDIATE RELEASE

Thursday, December 10, 2009

Former DOD Contracting Officer Sentenced to 110 Months in Prison for Filing False Tax Returns

WASHINGTON – A former civilian employee of the U.S. Department of Defense was sentenced today to 110 months in prison for filing false tax returns in which he failed to report more than $2.4 million in income, announced Assistant Attorney General of the Criminal Division Lanny A. Breuer and Assistant Attorney General of the Antitrust Division Christine A. Varney.

Tijani Ahmed Saani, 53, was also ordered to pay a $1.6 million fine and serve one year of supervised release following his prison term. Saani was also ordered to pay $816,485 in restitution to the Internal Revenue Service (IRS). Saani was sentenced in U.S. District Court for the District of Columbia by Judge Richard J. Leon.

Saani, a former resident of Kuwait City, Kuwait, and dual U.S./Ghanaian citizen, pleaded guilty on June 25, 2009, to five counts of filing false tax returns, one for each tax year from 2003 through 2007. According to court documents, Saani admitted failing to report at least $2.4 million in taxable income during this time, while he served in Kuwait as a contracting officer for the Department of Defense. According to the indictment to which Saani pleaded guilty, he worked on detail from 2002 until 2007 at Camp Arifjan, Kuwait. Saani also admitted he failed to report his ownership interest in foreign bank accounts in five different countries, including Ghana, Switzerland, the Jersey Channel Islands, the Netherlands and the United Kingdom. Saani used these accounts to help conceal his unreported income, and to send and receive wire transfers totaling more than $3.5 million.

This case is being prosecuted by Trial Attorneys Richard B. Evans and Kathryn H. Albrecht of the Criminal Division’s Public Integrity Section and Trial Attorneys Mark W. Pletcher, Emily W. Allen and Ryan Danks of the Antitrust Division’s National Criminal Enforcement Section. Assistance was also provided by the Criminal Division’s Office of International Affairs.

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The case is being investigated by IRS – Criminal Investigation, Army Criminal Investigation Division, Defense Criminal Investigative Service, U.S. Immigration and Customs Enforcement, the FBI and the Special Inspector General for Iraq Reconstruction.

Today’s sentencing is part of the Department’s ongoing investigation into procurement fraud in Iraq and Afghanistan. The Department’s National Procurement Fraud Initiative, announced in October 2006, is designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in contracting activity for national security and other government programs.

Anyone with information concerning bid rigging, bribery or other criminal conduct regarding

DOD contracts is urged to call the Defense Criminal Investigative Service at 800-424-9098 or [email protected]; Army Criminal Investigation Division at www.cid.army.mil; or the FBI a

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This is Google's cache of http://www.usdoj.gov/opa/pr/2008/September/08-crm-778.html. It is asnapshot of the page as it appeared on 19 Oct 2009 10:07:53 GMT. The current page could havechanged in the meantime. Learn more

These search terms are highlighted: camp arifjan fraud

FOR IMMEDIATE RELEASEThursday, September 4, 2008WWW.USDOJ.GOV

Department of Justice SealDepartment of Justice

CRM(202) 514-2007

TDD (202) 514-1888

Civilian Contractor Charged in SupersedingIndictment for Allegedly Paying Bribes Whileat Camp Arifjan in KuwaitWASHINGTON – A federal grand jury in the District of Columbia returned a supersedingindictment today against a civilian contractor for allegedly paying bribes to Army contractingofficials at Camp Arifjan, an Army base in Kuwait, and for committing honest services fraud inconnection with the same conduct, Acting Assistant Attorney General Matthew Friedrich of theCriminal Division announced.

The superseding indictment returned today charges Terry Hall, 41, of Rex, Ga., with one count ofconspiracy to commit bribery, two substantive bribery counts and two honest services wire fraudcounts. Hall was originally indicted on Nov. 20, 2007, and charged with one count of bribery of aU.S. Army contracting official at Camp Arifjan.

Hall operated several companies that had contracts with the U.S. military in Kuwait, includingFreedom Consulting and Catering Co. (FCC) and Total Government Allegiance (TGA).According to the superseding indictment, FCC and TGA received approximately $17 millionfrom contracts to deliver bottled water and to erect security fencing for the Department ofDefense (DoD) in Kuwait and Iraq.

The superseding indictment alleges that Hall bribed two Army majors who served as Armycontracting officials at Camp Arifjan between 2004 and 2006. The first contracting official(CO-1) arranged for a blanket purchase agreement (BPA) for bottled water to be awarded toFCC, and thereafter CO-1 arranged for calls under that BPA, as a result of which DoD paid FCCapproximately $6.8 million. CO-1 also arranged for DoD to award a contract to FCC to constructa security fence at Camp Arifjan, for which DoD paid FCC approximately $750,000. Accordingto the superseding indictment, in exchange for these and other official acts CO-1 performed, heand his wife received more than $1 million in money and jewelry from Hall.

The superseding indictment also charges that bank accounts were established in the CaymanIslands, the United States and elsewhere in the name of CO-1’s wife and in the name of an entitythat she incorporated, through which CO-1 and his wife received bribe money from Hall and

#08-778: Civilian Contractor Charged in Superseding Indictment f... http://74.125.93.132/search?q=cache:PJAuvZlZReEJ:www.usdoj...

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others.

In addition, the superseding indictment charges that a second contracting official, James Momon,arranged for calls to TGA under the bottled water BPA described above, as a result of whichDoD paid Hall approximately $6.4 million. In exchange for these and other official acts, Momonis alleged to have received at least $200,000 from Hall.

The superseding indictment also alleges that Hall arranged for companies and bank accounts tobe established in the Cayman Islands, the Philippines, the United Arab Emirates and elsewhere inthe names of third parties and entities, for the purpose of paying bribes to CO-1, James Momonand others. Hall also allegedly prepared and executed purported consulting agreements for thepurpose of creating the appearance that certain U.S. Army officials and others had legitimatelyearned the payments, which were in fact alleged to be bribes.

"Corruption uncovered throughout the course of this investigation is particularly unsettling in thatit involves collusion between Department of Defense contractors entrusted with providing crucialsupplies and services to soldiers, sailors, airmen and Marines serving so valiantly overseas, andmilitary officers who swore an oath to bear true faith and allegiance toward our nation and theprinciples it was founded on," said Sharon Woods, Director, Defense Criminal InvestigativeService. "The Defense Criminal Investigative Service remains committed to protecting America'swar fighters from individuals who place their own selfish interests above the welfare of ourcountry's brave protectors," Woods added.

"This case is indicative of the intense commitment we have to rooting out corruption andcriminality associated with contracting while supporting the U.S. Army and our war-fighters,"said Commanding Brigadier General Rodney Johnson of the U.S. Army Criminal InvestigationCommand. "It equally demonstrates the intense commitment and partnership we have as majorcontributors within the National Procurement Fraud Task Force."

"These selfish acts of greed pose a real threat to our men and women in uniform," said Julie L.Myers, Department of Homeland Security Assistant Secretary for U.S. Immigration and CustomsEnforcement (ICE). "Ensuring the integrity of our military support systems is key to protectingnational security at home and abroad."

"In concert with our partner law enforcement agencies, SIGIR continues to advance efforts toinvestigate allegations of corruption in Iraq and to support the Department of Justice'sprosecution of those who wrongfully have taken advantage of the U.S. reconstruction programfor illegal personal gain. The prosecution of Terry Hall is the latest success in those collectiveefforts," said Stuart W. Bowen, Special Inspector General for Iraq Reconstruction (SIGIR).

If convicted on the conspiracy charge, Hall faces up to five years in prison. Hall faces 15 years inprison if convicted on the bribery count and 20 years in prison if convicted on the wire fraudcount. Hall also faces fines and a term of supervised release, if convicted. The supersedingindictment also seeks the forfeiture of any property or money involved in the alleged offenses.

An indictment is merely an accusation and the defendant is presumed innocent until and unlessproven guilty at trial beyond a reasonable doubt.

The case is being prosecuted by trial attorneys Peter C. Sprung and Deborah Mayer of theCriminal Division’s Public Integrity Section, headed by Section Chief William Welch. These


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cases are being investigated by Army Criminal Investigation Division and Defense CriminalInvestigation Service, the FBI, ICE, the Justice Department’s Office of the Inspector General,SIGIR and the Internal Revenue Service Criminal Investigation. The investigations arecontinuing.

In October 2006, the Department of Justice announced the formation of a National ProcurementFraud Task Force designed to promote the early detection, identification, prevention andprosecution of procurement fraud associated with the increase in government contracting activityfor national security and other government programs. The Procurement Fraud Task Force,chaired by Acting Assistant Attorney General Friedrich, includes the U.S. Attorneys’ Offices, theFBI, the U.S. Inspectors General community, and a number of other federal law enforcementagencies. The cases brought by members of the Task Force demonstrate the Department ofJustice's commitment to helping ensure the integrity of the government procurement process.

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THE FIRST ENGLISH LANGUAGE DAILY IN FREE KUWAITEstablished in 1977

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US to keep pressure on Tehran:

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Diet changes help adult cholesterolNEW YORK, Feb 21, (RTRS): Older adult cancut their chole terol level by revamping theirdietary fat intake - even if they are already onchole terol-lowering tatins, a new study find .

Conventional wisdom holds that people houldfollow a healthy diet and get regular exercise tohelp control their chole terol and triglycerides,another type of harmful blood fat. But there haactually been little re earch into how well older

adults' choJe terol and triglyceride levelsre pond to diet change .

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In this photo released by the US Army, soldiers with B Co, 412th AviationSupport Battalion, Task Force 12, prepare to pull a CH-47 Chinook helicop-ter into the hold of an Air Force C-17 Globemaster IIIaircraft on ContingencyOperating Base Adder, south of Baghdad, Iraq. As the United States drawsdown forces in Iraq, the helicopter was transferred to Afghanistan. (AP)

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KUWAIT CITY, Feb 21: Members of the FederalBureau of love tigation (FBI) and Criminallnve tigation Agency (CIA) are investigating thealleged involvement of enior US Army officialsserving in Kuwait and Iraq in corruption andfinancial irregularitie ,report Al-Shahed daily.

The daily quoting reliable sources said the inves-tigation team resides in a hotel on the outskirts ofKuwait. The daily added, initial investigation haverevealed that ome US uppliers are involved inmoney laundering, muggling drug and offeringhuge comrni ion to senior officers in the US army.

The ources went on to ay the FBI and tbe CIAmembers are in touch with some Kuwaiti compa-nies and have reportedly reviewed tenders anddeal with the US army, especially tho e related tothe Camp Arifjan.


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The ources added the CIA and FBI mem-bers have violated local laws by bypas inglegal official channel .

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The officer confessed every person who offered to him a bribery,and provided sufficient information about their details, their

companies and the volume of the received moneys.

The two accused companies obtained new contracts past monthalthough its affair became known

The notes of officers regarding the registration of the briberiesincluded clear letters for the abbreviations of the names of

participants

Million dollars are offered by two Kuwaiti companies to capturebillion contracts

Hamed AI-Hamoud wrote:

The extra richness witnessed by some of the owners of the

boards of directors of illusive companies, not only because of the

trade of residences, but there are other reasons, including

fraudulence, and taking opportunities and contracts of third parties

via briberies, which was adopted by two Kuwaiti companies, that

they made a monopoly on the contracts of providing services to the

American Army for years.

High-level sources affirms to "Al-Shahed", that the case of

American Major "C.K", Contracts Officer in Arifjan Camp, is still

arousing a great interest in the United States of America and Kuwait,

but secretly at the Kuwaiti side, which has great indications for two

Kuwaiti companies, that special investigations between the two

countries revealed that the first letters of the names of the two

companies are mentioned in the record written for the commercial

accounts of the briberies, in which the Officer "K. C." recorded his

illegal, wide-spread activities in Arifjan Camp in Kuwait, by paying

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grand briberies to the officer for awarding the tenders on them, also,

they made common processes of money laundry.

The sources followed that the American Officer denoted some

of his activities in this record which contained more than 15 million

dollars as briberies for ensuring obtaining a certain contract, of

which he received 9.6 million dollars, and it was expected that 5.4

million dollars would be delivered. In the legislative order which

authorizes the authorities of investigation and police to carry out an

investigation for the accused person and the site of the evidences of

the crime, it was stated that for each installment of these amounts,

the accounts record mentioned the amount, and the source of the

paid amounts, and the person who received it.

The sources revealed that in the record of accounts of the

briberies, there were 11 abbreviations for names with amounts of

briberies offered to those persons; they were as follows: AA, lAS,

LI, FALAR, F.K.M, and TER Y. For example, the record which

contains two pages revealed that "KA" gained 2 Million dollars,

while "LISA" gained 5.1 Million dollars from AA. The officer

affirmed that AA refers to an international, known company, and

that the mentioned in the record of accounts of the briberies were

from their brothers.

The sources affirms that in the record written by the American

Officer "K.e", it is clearly revealed that who are the persons being

paid the briberies or promised to offer them, among them, there are

two Kuwaiti companies, the officer wrote the first letter F, beside

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which he wrote 40 thousand dollars, and the first letters KM, beside

which he wrote 40 thousand dollars.

The sources gave the priority that "F" refers to a Kuwaiti,

known company, and that the first letters ZM refers to another

Kuwaiti company for a person belonging to a known family, which

was more asserted that the same companies carried out many works

in Arifjan Camp, and in other place in Kuwait, in support to the

efforts of reconstruction of Iraq.

The relationship between the two companies are not clear, but

there are many aspects of similarity and correspondence between

them, that the sources didn't cancelled that there is a fraud

coordination between them on a wide scale, and there were direct

between km company and L company with the American legislative

authorities since the starting of war on Iraq, but they continued

working as favorite suppliers for the government, while they enjoyed

that they were the two companies only which were awarded by the

tenders from other companies.

The operation manager III the first company was arrested

because of his involvement in stealing fuel of the American Army,

and the second company was blamed by the American government

because of its role in the project, and it have to pay a financial fine

in an amount about 150 thousand Kuwaiti Dinars, equaling about

500 thousand American Dollars as a compensation to the American

government for the damages resulting from the crime .

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9.6 Million Dollars are total of the briberies which were receivedby the officer, and he was waiting another 5.4 million dollars

before arresting him.

The American authorities pursued one f the two companies andmade a fine on it with an amount of 150 thousand dinars in a

similar case.

Two in-charges in the two companies were arrested and theyconfessed their involvement in the affair, but the punishments

were stopped suddenly!

A wife of a main personality is involved in a scandal of crime ofbriberies and facilities is still waiting the order.

The sources said that the reason for which the in-charges

started quickly settling the case of fraudulence of the second

company in fuel, wasn't revealed, or how the compensations amount

was estimated without the participation of legislative authorities

licensed, which are usually considered responsible for the

investigation in such crimes and provide a recommendation to the

suitable criminal, civil and administrative procedures.

They referred that some members of the group which did the

illegal operation, that members of the gang said that they worked in

favor of a company so-called (.... ) and one of them confessed in

advance that he worked in favor of the above said company whose

headquarters is located in Kuwait.

The sources mentioned that a wife of a rnam person IS

involved in a scandal of crime of briberies and facilities, and waits

the order .

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In an unclear way, the government is continuing awarding the

contracts only to the two companies KM, via some offers.

It is stated that the officer "L.C" was working responsible for the

American military contracts in Arifjan Camp since 4 years

approximately. He confessed that he is guilty for his receiving 9.6

million dollars from several companies against his facilitation to

grant American governmental contracts to them. Also, he confessed

that he expected to obtain more than 5 million dollars as additional

briberies at the time arresting him, as established in the record of the

accounts of the briberies, confessing also that he is guilty for the

accusation of bribery, for committing the bribing on January 2008.

In the period between the confession of the officer "K" that he

is guilty, and the time in which it is announced, the officer assisted

the authorities in a secret way via delivering the names of the

persons involved with him in the corruption in Gulf region, in

addition to assisting the American government to reveal other cases

of cheating and fraudulence, hoping that the period of judgment of

imprisonment on him would be reduced than the prescribed period in

case of his non-cooperation. News were circulated that the American

Major is still continuing his cooperation, hoping that his punishment

period would be reduced.

After the officer departed Kuwait, he was entrusted to work

Fort Sam Huston Base in Texas, while the American investigators

found the record written by his handwriting, in which the briberies

are recorded .

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The sources stated that the details of the case looks like a story

of spying in the world and police films in cinema, that the plan of

delivering the moneys of the briberies was via placing a bag being

contain about 30 thousand dollars in cash in car parking in Kuwait,

and also contain records written by handwriting, that refer to the

sources of the moneys with will-known names being did the bribery,

in addition to instructions notify the conspirers to place keys of the

treasurers outside the window, and hide the important documents in

the chests, and at last, damaging these instructions and disposing of

them.

The sources revealed that it was prescribed that the judgment

on the American accused officer would be done at the first of the

present month, but the issuance of the judgment was deferred till

next September, and the authorities explained that it is according to

the legislative system in the United States, if the person for whom

the judgment will be issued, would cooperate, and leads to the

knowledge of the other persons involved in the criminal activities,

the issuance of the judgment on that accused person would be often

reduced.

All the forgoing happened by Kuwaiti companies on the land

of Kuwait, and the required, as said by the sources, is to confront

these companies and other, and non-using the Kuwaiti lands as a

square of fraudulence and briberies .

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The Major "C.K" recorded his illegal activities in Arifjan camp

.. investigations reveal money laundry operations

15 Million Dollars of bribery from two Kuwaiti companies

to American officer for obtaining the tenders of the Army

* Account statement of the briberies by handwriting of theAmerican officer

High-level sources affirms to "Al-Shahed", that the case of

American Major "C.K", Contracts Officer in Arifjan Camp, is still

arousing a great interest in the United States of America and Kuwait,

that special investigations between the two countries revealed that

the first letters of the names of the two companies are mentioned in

the record written for the commercial accounts of the briberies, in

which the Officer "C.K." recorded his illegal, wide-spread activities

in Arifjan Camp in Kuwait, by paying grand briberies for awarding

the tenders on them, also, they made common processes of money

laundry.

The sources followed that the American Officer denoted some

of his activities in this record which contained more than 15 million

dollars as briberies for ensuring obtaining a certain contract, of

which he received 9.6 million dollars, and it was expected that 5.4

million dollars would be delivered. In the legislative order which

authorizes the authorities of investigation and police to carry out an

investigation for the accused person and the site of the evidences of

the crime, it was stated that for each installment of these amounts,

the accounts record mentioned the amount, and the source of the

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paid amounts, and the person who received it. The sources revealed

that in the record of accounts of the briberies, there were 11

abbreviations for names with amounts of briberies offered to those

persons; they were as follows: AA, jera, lAS, Zenit, LI, Green,

FALAH, F.S, K.M., and TERY. For example, the record which

contains two pages revealed that "Karolin" gained 2 Million dollars,

while "MILISA" gained 5.1 Million dollars from AA.

The officer affirmed that AA refers to an international, known

company, and that the mentioned in the record of accounts of the

briberies were from their brothers, and that in the record written by

the American Officer "K.C", it is clearly revealed that who are the

persons being paid the briberies or promised to offer them, among

them, there are two Kuwaiti companies, the officer wrote the first

letter F, beside which he wrote 40 thousand dollars, and the first

letters KM, beside which he wrote 40 thousand dollars.

The sources gave the priority that "F.S." refers to a Kuwaiti,

known company, and that the first letters KMS refers to another

Kuwaiti company for a person belonging to a known family, which

was more asserted that the two companies carried out many works in

Arifjan Camp, and in other place in Kuwait, in support to the efforts

of reconstruction of Iraq .

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____________________________________________________________________________ FOR IMMEDIATE RELEASE CRM WEDNESDAY, FEBRUARY 7, 2007 (202) 514-2008 WWW.USDOJ.GOV TDD (202) 514-1888

FIVE DEFENDANTS INDICTED IN CASE INVOLVING BRIBERY, FRAUD AND MONEY LAUNDERING SCHEME IN AL-HILLAH, IRAQ

WASHINGTON – A federal grand jury in Trenton, N.J. has indicted three former U.S. Army officers and two U.S. civilians for their role in a bribery, fraud and money laundering scheme involving the theft of millions of dollars from the Coalition Provisional Authority (CPA) in Iraq, Deputy Attorney General Paul J. McNulty announced today.

The 25-count indictment unsealed today charges U.S. Army Colonel Curtis G. Whiteford, U.S. Army Lt. Colonels Debra M. Harrison and Michael B. Wheeler, and civilians Michael Morris and William Driver with various crimes related to a scheme to defraud the CPA - South Central Region (CPA-SC) in al-Hillah, Iraq. Whiteford, once the second-most senior official at CPA-SC, was charged with one count of conspiracy, one count of bribery, and 11 counts of honest services wire fraud. Harrison, at one time the acting Comptroller at CPA-SC who oversaw the expenditure of CPA-SC funds for reconstruction projects, was charged with one count of conspiracy, one count of bribery, 11 counts of honest services wire fraud, four counts of interstate transport of stolen property, one count of bulk cash smuggling, four counts of money laundering, and one count of preparing a false tax form. Wheeler, an advisor for CPA projects for the reconstruction of Iraq, was charged with one count of conspiracy, one count of bribery, 11 counts of honest services wire fraud, one count of interstate transport of stolen property, and one count of bulk cash smuggling.

Morris, a U.S. citizen in Romania who owns and operates a Cyprus-based financial services business, was charged with one count of conspiracy and 11 counts of honest services wire fraud. Morris was arrested by Romanian authorities on Feb. 6, 2007. The United States is seeking to have him extradited to New Jersey on these charges. Driver, Harrison’s husband, was charged with four counts of money laundering. Harrison and Wheeler, who were previously charged in criminal complaints, remain released on bond. “This indictment alleges that the defendants flagrantly enriched themselves at the expense of the Iraqi people – the very people they were there to help,” said Deputy Attorney General McNulty. “U.S. government officials working in Iraq are not for sale. We will prosecute anyone who attempts to exploit the reconstruction efforts in Iraq for their personal gain.” According to the indictment, from December 2003 through December 2005, Whiteford, Harrison, Wheeler and Morris conspired with at least three others—Robert Stein, at the time the Comptroller and Funding Officer for the CPA-SC; Philip H. Bloom, a U.S. citizen who owned and operated several companies in Iraq and Romania; and U.S. Army Lt. Colonel Bruce

D. Hopfengardner—to rig the bids on contracts being awarded by the CPA-SC so that all of the contracts were awarded to Bloom. In total, Bloom received more than $8.6 million in rigged contracts. The indictment alleges that Bloom, in return, provided Whiteford, Harrison, Wheeler, Stein, Hopfengardner and others with over $1 million in cash, SUVs, sports cars, a motorcycle, jewelry, computers, business class airline tickets, liquor, promise of future employment with Bloom, and other items of value. The indictment alleges that Bloom laundered over $2 million in currency that Whiteford, Harrison, Wheeler, Hopfengardner, Stein and others stole from the CPA-SC that had been designated for the reconstruction of Iraq. Bloom then used his foreign bank accounts in Iraq, Romania and Switzerland to send some of the stolen money to Harrison, Stein, Hopfengardner, and other Army officials in return for them awarding contracts to Bloom and his companies. Morris allegedly assisted Bloom in making these wire transfers of stolen CPA funds and in funneling those monies to the co-conspirators. Harrison and her husband, William Driver, for example, allegedly received a Cadillac Escalade as a bribe and used tens of thousands of dollars for improvements to their home in Trenton. Whiteford allegedly received at least $10,000 in cash, a $3,200 watch, a job offer from Bloom, and other valuables. The indictment further alleges that during the course of the conspiracy, Whiteford, Harrison, Wheeler, Stein and Hopfengardner used U.S. currency stolen from the CPA-SC to funnel funds to Bloom for the purchase of weapons which they converted to their own personal use in the United States, including machine guns, assault rifles, silencers and grenade launchers. Stein was sentenced on Jan. 29, 2007, to nine years in prison. He previously pleaded guilty to conspiracy, bribery, money laundering, possession of machine guns, and being a felon in possession of a firearm for his role in the scheme to defraud the CPA-SC. On March 10, 2006, Bloom pleaded guilty to related charges of conspiracy, bribery, and money laundering in connection with the same scheme as Stein. Bloom is scheduled to be sentenced on Feb.16, 2007.

On Aug. 25, 2006, Hopfengardner, pleaded guilty to charges of conspiracy to commit wire fraud and money laundering in connection with the same scheme as Bloom and Stein. Hopfengardner is scheduled for a status conference on March 23, 2007. These cases are being prosecuted by Trial Attorneys James A. Crowell IV and Ann C. Brickley of the Public Integrity Section, headed by Acting Section Chief Edward C. Nucci, and Trial Attorney Patrick Murphy of the Asset Forfeiture and Money Laundering Section, headed by Chief Richard Weber, of the Criminal Division. These cases are being investigated by the Special Inspector General for Iraq Reconstruction (SIGIR), Internal Revenue Service Criminal Investigations (IRS), the U.S. Immigration and Customs Enforcement at the Department of Homeland Security (ICE), Army Criminal Investigations Division, the U.S. Department of State Office of Inspector General, and the FBI’s Washington Field Office in support of the Justice Department’s National Procurement Fraud Task Force and the International Contract Corruption Initiative. The investigation has received substantial assistance from the ICE Cybercrimes Division. “These indictments not only serve as a deterrent to future crimes of this nature, but also demonstrate the direct benefits of independent oversight and interagency cooperation in

guarding American tax dollars invested in Iraq,” said Special Inspector General for Iraq Stuart Bowen. “SIGIR’s investigative team, now in Baghdad for more than three years, should be proud of their significant contribution in bringing these individuals to justice.” “No matter how complex the fraud scheme, the individuals indicted today illustrate that even military officers are not above the law and will be brought to justice if they engage in procurement fraud in the Iraqi reconstruction. The FBI, in support of the National Procurement Fraud Task Force and the International Corruption Initiative, stands ready to work with our partners to investigate, as appropriate, and to eliminate contract bid rigging, bribery, fraud, and money laundering schemes that hinder the rebuilding efforts in Iraq,” said Assistant Director Michael A. Mason, Criminal, Cyber, Response and Services Branch of the FBI.

“Criminals motivated by profit and greed don’t deserve to work alongside the brave men and women of our military serving in Iraq,” said Julie Myers, Assistant Secretary of Homeland Security for ICE. “These charges highlight the federal government’s commitment in targeting suspected bribery, fraud and money laundering involving Iraq reconstruction funds and the war in Iraq. ICE is proud to have contributed its financial investigative expertise to this important joint operation.”

“The IRS will use the tax code and money laundering authorities to go after corrupt

officials and contractors,” said IRS Commissioner Mark W. Everson. “Sometimes this is the fastest and most direct way to hold accountable those who abuse the public trust, as is clearly the case in this instance.” “We are committed to investigating and rooting out these types of crimes to the fullest, wherever the truth may lead us,” said Brig. Gen. Rodney Johnson, commanding general, U.S. Army Criminal Investigation Command and Provost General of the Army. “This goes against the very fabric of our values as an Army and we will continue to aggressively pursue individuals, in or out of uniform, and companies who commit crimes against the Army, the American taxpayer, and the people we serve.”

An indictment is merely an allegation. Defendants are presumed to be innocent until proven guilty.

Deputy Attorney General McNulty announced the creation of the National Procurement Fraud Initiative in October 2006, designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in contracting activity for national security and other government programs. As part of this initiative, the Deputy Attorney General has created the National Procurement Fraud Task Force (www.usdoj.gov/criminal/npftf), which includes federal prosecutors, the FBI, SIGIR, and the Offices of Inspectors General for key federal agencies, and is chaired by Assistant Attorney General Alice S. Fisher of the Criminal Division. The Task Force has formed regional working groups around the country and is addressing many important topics relating to procurement fraud, including international procurement fraud issues, training, potential legislation, and information sharing between agencies.

Since the formation of the Task Force, federal prosecutors have brought or resolved 15 different criminal cases involving procurement fraud and have recovered more than $100 million through vigorous enforcement of civil remedies available in procurement fraud cases. Other examples of fraud and abuse cases prosecuted by the Department of Justice in recent months include the following:

• On Feb. 2, 2007, former U.S. Army civilian translator Faheem Salam of Michigan was sentenced to three years in prison for offering bribes to a senior Iraqi police official, in violation of the Foreign Corrupt Practices Act;

• On Jan. 30, 2007, Gheevarghese Pappen, a U.S. Army Corps of Engineers employee at Camp Arifjan in Kuwait, was sentenced to two years in prison for accepting $50,000 in illegal gratuities from a Kuwaiti contractor;

• On Jan. 25, 2007, Peleti “Pete” Peleti Jr., a U.S. Army Chief Warrant Officer, was charged in the Central District of Illinois with receiving a $50,000 bribe in exchange for influencing a food supplies services contract. Peleti served as Army’s Theater Food Service Advisor and was stationed at Camp Arifjan in Kuwait;

• On Nov. 13, 2006, four members of the California Army National Guard pleaded guilty to conspiracy charges related to their embezzlement from the U.S. Army while deployed in Iraq.

# # #

07-077

Federal Bureau of Investigation - The Birmingham Division: Depa... http://birmingham.fbi.gov/dojpressrel/pressrel09/bh050609.htm

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Department of Justice Press Release

For Immediate ReleaseMay 6, 2009

United States Attorney's OfficeNorthern District of AlabamaContact: (205) 244-2001

Civilian Contractor, U.S. Army Major and His Wife Indicted for Alleged Bribe Scheme InvolvingContracts at Camp Arifjan in Kuwait

Government Seeks Forfeiture of Commercial Real Estate, Residences and ExpensiveAutomobiles

A 23-count indictment unsealed today alleges that a civilian contractor paid more than $2.8 million inbribes to a U.S. Army contracting official stationed at Camp Arifjan, an Army base in Kuwait, and theofficial’s wife, and that the three individuals committed honest services fraud and money launderingoffenses in connection with the same conduct.

The indictment, returned by a federal grand jury in the Northern District of Alabama, charges Terry Hall,43, of Snellville, Ga., with one count of conspiracy to commit bribery, one substantive bribery count,eight counts of honest services wire fraud, one count of money laundering conspiracy and one count ofengaging in monetary transactions in criminal proceeds.

Hall was originally indicted in the District of Columbia on Nov. 20, 2007, and charged with one count ofbribery of a U.S. Army contracting official at Camp Arifjan. On Sept. 4, 2008, Hall was charged in asuperseding indictment with one count of conspiracy to commit bribery, two substantive bribery countsand two honest services wire fraud counts. The government will seek dismissal of the D.C. indictmentsso that Hall can be tried together with his co-conspirators, named in the Alabama indictment unsealedtoday.

In the Alabama indictment, U.S. Army Major Eddie Pressley, 39, and his wife, Eurica Pressley, 37, bothof Harvest, Ala., are charged with conspiracy to commit bribery, one substantive count of bribery, eightcounts of honest services wire fraud, one count of money laundering conspiracy and eleven counts ofengaging in monetary transactions in criminal proceeds.

The indictment alleges that Hall bribed two Army Majors, Eddie Pressley and James Momon, whoserved as Army contracting officials at Camp Arifjan between 2004 and 2006. According to theindictment unsealed today, from January 2004 to November 2007, Hall operated several companiesthat had contracts with the U.S. military in Kuwait, including Freedom Consulting and Catering Co.(FCC), and Total Government Allegiance (TGA). As a result of the bribes, FCC and TGA allegedlyreceived approximately $21 million from contracts to deliver bottled water and to erect security fencingfor the Department of Defense (DoD) in Kuwait and Iraq.

According to the indictment, Eddie Pressley allegedly arranged for a blanket purchase agreement(BPA) for bottled water to be awarded to FCC, and thereafter Eddie Pressley arranged for calls underthat BPA. As a result, DoD paid FCC approximately $9.3 million. BPAs are contracts in which DoDagrees to pay a contractor a specified price for supplies and orders them on an as-need basis. Anorder under the contract is known as a "call." Eddie Pressley also allegedly arranged for DoD to awarda contract to FCCto construct a security fence at Camp Arifjan, for which DoD paid FCC approximately$750,000.

In exchange for these and other official acts, Eddie and Eurica Pressley are alleged to have receivedmore than $2.8 million in money and other valuable items from Hall. To receive the bribe payments,Eurica Pressley, at the behest of her husband, arranged for an entity named EGP Business SolutionsInc. (EGP) to be incorporated, opened a bank account in the name of EGP, and opened bank accountsin her name in Dubai, United Arab Emirates and the Cayman Islands. Hall, Eddie Pressley and EuricaPressley also allegedly prepared and executed purported consulting agreements for the purpose ofcreating the appearance that Eurica Pressley had legitimately earned consulting fees from Hall. Hallthen allegedly funneled bribe payments into the bank accounts controlled by Eurica Pressley.

The indictment also alleges that a second contracting official, former U.S. Army Major James Momon,arranged for calls to TGA under the same bottled water BPA, as a result of which DoD paid Hallapproximately $6.4 million. Hall allegedly paid Momon at least $200,000 in exchange for these andother official acts. On Aug. 13, 2008, Momon pleaded guilty to receiving bribes from various contractingofficers at Camp Arifjan.

"Service members and contractors who place personal gain above taxpayers’ interests during periodsof war breach the public trust and undermine the legitimacy of public institutions," said Sharon Woods,Director of the Defense Criminal Investigative Service. "Corruption of the nature uncovered throughoutthe course of this investigation destroys confidence in the Government's ability to act as an effective


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steward of taxpayer dollars. The Defense Criminal Investigative Service remains committed to workingwith law enforcement partners and the Department of Justice to prosecute fraud and public corruptionto the fullest extent of the law."

"Such alleged activity by Army employees or government contractors who work with the Army will notbe tolerated. We will continue to investigate allegations of this nature and do everything in our power tosee that persons responsible are held accountable and brought to justice," said Brigadier GeneralRodney Johnson, the Commanding General of the U.S. Army Criminal Investigation Command (U.S.Army CID).

"These latest arrests of are further evidence of SIGIR’S continuing efforts to root out public corruptionwithin the Iraq program," said Stuart W. Bowen Jr., Special Inspector General for Iraq Reconstruction(SIGIR). "This successful investigation was part of cooperative efforts carried out by SIGIR and ourpartner agencies."

An indictment is merely an accusation and the defendant is presumed innocent until and unless provenguilty at trial beyond a reasonable doubt.

The charge of bribery conspiracy carries a maximum prison sentence of five years per count. Eachsubstantive bribery count and wire fraud count carries a maximum penalty of 15 years in prison. Eachcount of money laundering conspiracy carries a maximum prison sentence of 20 years and each countof monetary transactions in criminal proceeds carries a maximum penalty of 10 years in prison.

The case is being prosecuted by trial attorneys Peter C. Sprung, Deborah Sue Mayer and Edward J.Loya Jr., of the Criminal Division’s Public Integrity Section, headed by Section Chief William Welch.These cases are being investigated by U.S. Army CID and Defense Criminal Investigation Service,FBI, ICE, the Justice Department’s Office of the Inspector General, SIGIR and the Internal RevenueService Criminal Investigation. The investigations are continuing.

In October 2006, the Department of Justice announced the formation of a National Procurement FraudTask Force designed to promote the early detection, identification, prevention and prosecution ofprocurement fraud associated with the increase in government contracting activity for national securityand other government programs. The Procurement Fraud Task Force, chaired by Assistant AttorneyGeneral Breuer, includes the U.S. Attorneys’ Offices, the FBI, the U.S. Inspectors General community,and a number of other federal law enforcement agencies. The cases brought by members of the TaskForce demonstrate the Department of Justice's commitment to helping ensure the integrity of thegovernment procurement process.

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Third Suspect Arrested in DOD Bribery Cases in Iraq and Kuwait By: Jim Kouri, CPP

WASHINGTON, DC - A third individual was arrested and charged with conspiracy to commit money laundering arising from a scheme involving bribery, conspiracy and money laundering related to Department of Defense contracts in Iraq and Kuwait, according to a report released by Assistant Attorney General Alice S. Fisher of the Criminal Division and Assistant Attorney General Thomas O. Barnett of the Antitrust Division.

The individual, Carolyn Blake, is the sister of John L. Cockerham, a major in the US Army who was charged on July 22, 2007, with bribery, money laundering and conspiracy arising out of his service as an Army contracting officer in Kuwait in 2004 and 2005. Cockerham’s wife, Melissa Cockerham, 40, was charged at the same time for her role in the scheme with conspiracy to defraud the government and conspiracy to commit money laundering.

Major Cockerham and his wife were arrested in San Antonio on July 22, 2007, and the charges against the Cockerhams were unsealed on July 23, 2007, in US District Court in San Antonio. Cockerham and his wife are residents of Fort Sam Houston Army Base in San Antonio. The Cockerhams’ detention hearing has been set for July 31, 2007, at 10:00 a.m. before Magistrate Judge Mathy.

The complaint against Blake was filed in US District Court in Dallas. Blake was arrested last night in Dallas. Blake, 44, a resident of Sunnyvale, Texas, and Melissa Cockerham, are charged with conspiracy to defraud the government and conspiracy to commit money laundering.

According to the affidavit filed in support of Blake’s arrest, beginning in 2005, Major Cockerham began accepting millions of dollars in bribes from contractors who had Department of Defense contracts in Iraq and Kuwait that were managed by Major Cockerham.

The affidavit also alleges that under the direction of Major Cockerham, Melissa Cockerham and Carolyn Blake received millions of dollars in US and foreign currency from these contractors and deposited the monies in bank accounts and safe deposit boxes in Kuwait and Dubai. Blake’s detention hearing has been set in US District Court in Dallas.

All three defendants face up to 20 years in prison and a fine of $500,000 for the charge of money laundering. The charge of bribery carries a maximum penalty of 15 years in prison and a fine of $250,000. The conspiracy charge carries a maximum penalty of five years in prison and a fine of $250,000.

This case is being prosecuted by Trial Attorneys Ann C. Brickley and Richard B. Evans of the Public Integrity Section of the Criminal Division, which is headed by Chief William M. Welch

II, and Trial Attorneys Mark W. Pletcher and Emily W. Allen of the National Criminal Enforcement Section of the Antitrust Division, which is headed by Chief Lisa Phelan.

The case is being investigated by special agents of the Army Criminal Investigation Division, Defense Criminal Investigative Service; US Immigration and Customs Enforcement at the Department of Homeland Security; the Federal Bureau of Investigation; the Internal Revenue Service - Criminal Investigation Division; and the Special Inspector General for Iraqi Reconstruction.

The charge is an example of the Department of Justice’s commitment to protect US taxpayers from public procurement fraud through its creation of the National Procurement Fraud Task Force. The National Procurement Fraud Initiative announced in October 2006 is designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in contracting activity for national security and other government programs.

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Contractor fraud probed on Kuwait base

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Enlarge By Gustavo Ferrari, AP

Army Lt. Col. Leon Sumpter walks past helicopters at Camp Arifjan in Kuwait in June 2003. The Pentagon is investigating corruption at the base, the center of the Army's financial operation for Iraq.

Lt. Gen. RossThompson

By Rick Kozak,Military Times

Rep. Ike Skelton

By Pablo Martinez Monsivais, AP

Army Maj. John L. Cockerham

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By Matt Kelley, USA TODAY WASHINGTON — Camp Arifjan, a sprawling base of warehouses and prefabricated office buildings in the dusty Kuwaiti desert, is the center of the Army's financial operation for Iraq. It has handled more than $4.2 billion in military contracts.

It's also a center for corruption investigations.

U.S. authorities are investigating a web of more than $10 million in favors, bribes and kickbacks among Army officers, contractors and subcontractors at Camp Arifjan, court and military records show.

So far, 13 people associated with the Army's contracting operation in Kuwait have been charged with corruption in federal courts — the majority of the 20 corruption cases brought to date involving Army contracts for Iraq. Eight of the 13 have pleaded guilty. Two enlisted soldiers at Camp Arifjan were court-martialed for taking bribes.

Six companies accused of corruption in Kuwait also have been punished administratively by Army contracting officials, records show.

FIND MORE STORIES IN: Iraq | Army | Davis | Kuwait | Contractor | Chief Warrant Officer | Army Lt | Thomas Gimble | John Cockerham

Those cases involve allegations of contractors offering shopping bags and suitcases stuffed with cash, wire transfers of hundreds of thousands of dollars into offshore accounts, gifts ranging from phone cards to SUVs, and parties with food, drinks and, in one case, a prostitute, court records show.

The Pentagon has 90 criminal investigations involving $6 billion worth of contracts, and a third of those probes have ties to Kuwait, Deputy Inspector General Thomas Gimble told the House Armed Services Committee last month.

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"How did this culture of corruption come to pass in the office in Kuwait?" committee Chairman Ike Skelton, D-Mo., demanded during a hearing on the issue.

Lt. Gen. Ross Thompson, co-chairman of an Army fraud-fighting task force, acknowledged problems with oversight, but added: "I do not think it's a culture. They are, for the most part, isolated incidents."

Records from the corruption investigations tell a different story. "I've experienced numerous approaches from the contractor(s) themselves for bribery," Chief Warrant Officer Peleti "Pete" Peleti Jr. said in a July 2006 confession.

Peleti told Army Criminal Investigation Command agents that he accepted cash, souvenirs, meals and the use of an SUV from three contractors from 2003 to 2005.

He confessed to taking more than $8,000 in Iraqi currency from Mohammad Shabbir Khan, a former executive with the Saudi Arabian company Tamimi Global Co., which provided meals to U.S. troops under an Army subcontract.

Khan hosted gatherings at a "party house" in Kuwait for Army contracting officers and contractors, Peleti wrote. "I've spent approximately 10-12 times attending parties with other contractors and military personnel," he added.

After confessing, Peleti agreed to cooperate with prosecutors in the wider corruption probes and pleaded guilty to one bribery charge for accepting $50,000 cash from an executive of Gulf Catering Co. seeking to supply napkins and cutlery to U.S. troops. In July, Peleti filed a motion to withdraw his plea, arguing that he wasn't guilty of bribery because he had no power to award the contract.

Khan is serving a 51-month prison term after pleading guilty in a separate case to paying $133,000 in kickbacks to Stephen Seamans, a former employee of KBR, which awarded the subcontract to Tamimi. Khan's guilty plea says the scheme began in October 2002, when he hosted a birthday party for Seamans and provided him with the services of a prostitute.

Seamans also pleaded guilty. He was released from prison last month after serving about eight months of a one-year term.

The biggest bribery case of the Iraq war so far involves Army Maj. John Cockerham, a former contracting officer at Arifjan, who is accused of taking $9.6 million in bribes from at least eight companies seeking contracts to provide bottled water and other supplies.

Those linked to Cockerham include some involved in other cases:

•Maj. Gloria Davis, a fellow contracting officer at Arifjan who worked on several contracts with Cockerham. Davis killed herself in December, a day after admitting to Army investigators that she took $225,000 in bribes from contractor Lee Dynamics International, federal court records

say. Lee Dynamics also hired Davis' son, Damien Thomas, the company's lawyer says. The Army suspended Lee Dynamics from contracting in July.

•Diaa Salem, a businessman from Kuwait whom Cockerham named as a business partner when creating a Texas company in 2004. The Army barred Salem and his firm, Jasmine International Trading, from getting contracts for a year in 2006 in a separate case.

In that case, two Army soldiers working at Camp Arifjan's finance office were court-martialed for taking $7,000 from Salem to process Jasmine's payments more quickly, according to Army records released to USA TODAY under the Freedom of Information Act.

Davis' son and daughter are challenging the government's efforts to seize $177,000 prosecutors say are proceeds from Lee Dynamics bribes. Their lawyer, Lars Liebeler, declined to comment on Thomas' job. Liebeler said the siblings do not want to discuss the case.

Howell Riggs, Lee Dynamics' lawyer, said founder George Lee hired Thomas as a trainee.

"Mr. Lee was motivated by a desire to help a young black man see a different life than the life of an unemployed minority learning from the college of street life," Riggs said in an e-mail. "Other than expressing her distress about her son's situation, Maj. Davis played no role in LDI's decision" to hire Thomas.

Cockerham, in jail since July, has pleaded not guilty. "We're going to be fighting the charges," said his attorney, Jimmy Parks.

In response to the problems at Camp Arifjan, the Army has reorganized its contracting office in Kuwait, replaced its leaders, added staff and provided more ethics training, according to Thompson, the co-chairman of the Army contracting fraud task force.

Thompson told the House panel that officials are examining all of the more than 18,000 contract actions from Kuwait since October 2002 and plan to transfer oversight of major contracts to an Army financial center in Illinois.

The Army also created a contracting corps specially trained for military operations such as the Iraq war to help prevent future problems, Thompson said.

Documents

!Camp Arifjans Corruption Indicted and Convicted