!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.
Press Releases | Washington Field Office Home

For Immediate Release
February 18, 2010 U.S. Department of Justice
(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.
Press Releases | Washington Field Office Home

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Department of Justice
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.
1 | P a g e

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
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 hotline@dodig.mil; Army Criminal Investigation Division at
www.cid.army.mil; or the FBI a
2 | P a g e

1 | P a g e

2 | P a g e

3 | P a g e

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.
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.
lawyer.
in the Cockerham Case to contracting firms operated by African-American civilians in the U .S.
the LDI founder.
charged in the Cockerham Case—and a total of 60 suspects will be charged, including civilians.
Army Sergeant Pleads Guilty to Accepting $1.4 Million in Illegal Gratuiti... http://www.justice.gov/opa/pr/2010/April/10-crm-459.html
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FOR IMMEDIATE RELEASE Wednesday, April 21, 2010
Army Sergeant Pleads Guilty to Accepting $1.4 Million in

Illegal Gratuities Related to Military Dining Contracts in
Kuwait
A U.S. Army sergeant pleaded guilty today to accepting approximately $1.4 million in illegal
gratuities from private contractors during his deployment to Kuwait in 2002 and 2003, announced
Assistant 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 the
Central 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 Kuwait
from January 2002 through December 2003. Chase served as the contracting officer’s
representative 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 the
non-commissioned officer in charge for the military dining facility at Camp Arifjan, Kuwait. Chase
supervised the food procurement, preparation and service operations at Camp Doha and Camp
Arifjan. As a part of his official duties, Chase also coordinated orders for certain blanket purchase
agreements the U.S. Army had with various private contractors to provide supplies and services to
both of those dining facilities.
During today’s court proceeding and according to court documents, Chase admitted that he received
approximately $1.4 million from private contractors for official acts he performed and was going to
perform in 2002 through the end of 2003. According to court documents, he was paid by private
contractors that included Tamimi Global Company Ltd., LaNouvelle General Trading & Contracting
Corp., and another unnamed company.
In addition to accepting the illegal gratuities, Chase admitted that after he returned to the United
States in 2004, he structured various financial transactions to avoid currency transaction reporting
requirements. Chase also admitted at today’s hearing that he made false statements when
interviewed by federal authorities in February 2007.
At sentencing, scheduled for Aug. 6, 2010, before U.S. District Judge Joe B. McDade, Chase faces a
maximum sentence of five years in prison. Chase has agreed to forfeit assets traceable to the
proceeds of his crimes.
This case is being prosecuted by Assistant U.S. Attorney Matthew J. Cannon of the Central District
of Illinois and Trial Attorney Joseph A. Capone of the Criminal Division’s Fraud Section. The case is
being investigated by the Army Criminal Investigations Division; the Defense Criminal
Investigative Service; the FBI; the Internal Revenue Service, Criminal Investigations Division; and
members of the National Procurement Fraud Task Force and the International Contract Corruption
Task Force (ICCTF). The U.S. Attorney’s Office for the District of Kansas also provided assistance in
the case.
1 of 3 4/23/2010 1:42 PM
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trial is set for April.

$9.6 million in bribes while he was stationed at Camp
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award from $17 million to $3.5 million and that the work was then on safe deposit box, and two UPS mail boxes listed as
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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.
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
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 hotline@dodig.mil; Army Criminal Investigation Division at
www.cid.army.mil; or the FBI a

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Department of Justice SealDepartment of Justice
FOR IMMEDIATE RELEASE CRM

Thursday, September 4, 2008 (202) 514-2007
WWW.USDOJ.GOV TDD (202) 514-1888
Civilian Contractor Charged in Superseding

Indictment for Allegedly Paying Bribes While
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at Camp Arifjan in Kuwait
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WASHINGTON – A federal grand jury in the District of Columbia returned a superseding
te
indictment today against a civilian contractor for allegedly paying bribes to Army contracting
officials at Camp Arifjan, an Army base in Kuwait, and for committing honest services fraud in
connection with the same conduct, Acting Assistant Attorney General Matthew Friedrich of the
is
Criminal Division announced.
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The superseding indictment returned today charges Terry Hall, 41, of Rex, Ga., with one count of
conspiracy to commit bribery, two substantive bribery counts and two honest services wire fraud
counts. Hall was originally indicted on Nov. 20, 2007, and charged with one count of bribery of a
U.S. Army contracting official at Camp Arifjan.
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Hall operated several companies that had contracts with the U.S. military in Kuwait, including
Freedom Consulting and Catering Co. (FCC) and Total Government Allegiance (TGA).
According to the superseding indictment, FCC and TGA received approximately $17 million
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from contracts to deliver bottled water and to erect security fencing for the Department of
Defense (DoD) in Kuwait and Iraq.
The superseding indictment alleges that Hall bribed two Army majors who served as Army
contracting 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 to
FCC, and thereafter CO-1 arranged for calls under that BPA, as a result of which DoD paid FCC
approximately $6.8 million. CO-1 also arranged for DoD to award a contract to FCC to construct
a security fence at Camp Arifjan, for which DoD paid FCC approximately $750,000. According
to the superseding indictment, in exchange for these and other official acts CO-1 performed, he
and 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 Cayman
Islands, the United States and elsewhere in the name of CO-1’s wife and in the name of an entity
that she incorporated, through which CO-1 and his wife received bribe money from Hall and
1 of 3 12/19/2009 1:09 PM
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 which
DoD paid Hall approximately $6.4 million. In exchange for these and other official acts, Momon
is alleged to have received at least $200,000 from Hall.
The superseding indictment also alleges that Hall arranged for companies and bank accounts to
be established in the Cayman Islands, the Philippines, the United Arab Emirates and elsewhere in
the names of third parties and entities, for the purpose of paying bribes to CO-1, James Momon
and others. Hall also allegedly prepared and executed purported consulting agreements for the
purpose of creating the appearance that certain U.S. Army officials and others had legitimately
earned the payments, which were in fact alleged to be bribes.
"Corruption uncovered throughout the course of this investigation is particularly unsettling in that
it involves collusion between Department of Defense contractors entrusted with providing crucial
supplies and services to soldiers, sailors, airmen and Marines serving so valiantly overseas, and
d
military officers who swore an oath to bear true faith and allegiance toward our nation and the
principles it was founded on," said Sharon Woods, Director, Defense Criminal Investigative
re
Service. "The Defense Criminal Investigative Service remains committed to protecting America's
war fighters from individuals who place their own selfish interests above the welfare of our
country's brave protectors," Woods added.
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"This case is indicative of the intense commitment we have to rooting out corruption and
is
criminality 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 Investigation
Command. "It equally demonstrates the intense commitment and partnership we have as major
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contributors 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.
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Myers, Department of Homeland Security Assistant Secretary for U.S. Immigration and Customs
Enforcement (ICE). "Ensuring the integrity of our military support systems is key to protecting
national security at home and abroad."
"In concert with our partner law enforcement agencies, SIGIR continues to advance efforts to
U
investigate allegations of corruption in Iraq and to support the Department of Justice's

prosecution of those who wrongfully have taken advantage of the U.S. reconstruction program
for illegal personal gain. The prosecution of Terry Hall is the latest success in those collective
efforts," 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 in
prison if convicted on the bribery count and 20 years in prison if convicted on the wire fraud
count. Hall also faces fines and a term of supervised release, if convicted. The superseding
indictment 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 unless
proven guilty at trial beyond a reasonable doubt.
The case is being prosecuted by trial attorneys Peter C. Sprung and Deborah Mayer of the
Criminal Division’s Public Integrity Section, headed by Section Chief William Welch. These
2 of 3 12/19/2009 1:09 PM
cases are being investigated by Army Criminal Investigation Division and Defense Criminal
Investigation Service, the FBI, ICE, the Justice Department’s Office of the Inspector General,
SIGIR and the Internal Revenue Service Criminal Investigation. The investigations are
continuing.
In October 2006, the Department of Justice announced the formation of a National Procurement
Fraud Task Force 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 Procurement Fraud Task Force,
chaired by Acting Assistant Attorney General Friedrich, 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 Task Force demonstrate the Department of
Justice's commitment to helping ensure the integrity of the government procurement process.
###
08-778
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3 of 3 12/19/2009 1:09 PM
THE FIRST ENGLISH LANGUAGE DAILY IN FREE KUWAIT
Established in 1977
MONDAY, FEBRUARY 22, 2010 I RABI-VL-AWWAL 8, 1431 AH
AIN, IRELAND TO PRESS TEL AVIV ON PASSP
UAE summons envoys

et, (Agencies): I raeli to kill Mahmud al-Mabhuh, a top com- minister intones: 'The people of Israel trust The high-profile killing has cau ed 20 killing. incriminating pr
enjamin Netanyahu met mander of the I lamist movement that rules you. Good luck,"' the paper added. diplomatic tensions between Israel and No government ha directly accused cial told AFP Fri
quad at Mo ad head- Gaza, the paper said, quoting unnamed It al 0 quoted a ource aying burn from four European countrie - Britain, Israel but Dubai police chief Dahi tified.
ore they went to Dubai ource with knowledge of Mo ad. a tun gun were found on the body of Ireland, France and Germany - whose Khalfan Tamim has aid it wa "most Mo ad has u
commander, Britain' The prime mini ter reportedly authori ed Mabhuh, a founder of Hamas's armed wing fake passports were linked to the hit. likely" Mossad was behind the crime and ports for operati
paper reponed. the mi ion, which wa not een as compli- who was killed on a vi it to Dubai, and that Interpol has issued arrest notice for II wants Dagan to bear responsibility if it it is highly unli
welcomed to Mo ad by cated or risky. there were traces of a nose bleed, po sibly u pects, while Israel has hrugged off wa. out the killing
an and briefed on plans "Typically on from being smothered. calls for Dagan to be arre ted over the Ian "The Dubai police have provided no Conti
e la or la
Renews hope
ee es •••
By Nihal Sharaf
Arab Times Staff
KUWAIT CITY, Feb
21: The new Kuwait
labor law has become
law after being pub-
Mu lim Associations (FIMA).
Continued on Page 43
USS/KD 0.289780 Gold medallist Netherlands's Mark Tuitert skates during the men's 1,500 meter speed skating race at the Rich
Columbia, Feb 20. (AP) - See Pages 45, SO,
Euro/NO 0.393734
Yen/KD 0.00315830 US to keep pressure on Tehran:

British £/Ko 0.448095
tackled
lead of
IS I 22,4 pts clOSing.Feb 21
See Page 41 New Israeli drone fleet
TELNOF
try. We
ng e -
ere! I of
H i 21, (Agenci
duced a flee
Nasdaq +2.16 pts closing. Feb 19 can fly a C
my. We - Details Page 31 - Air force
ing the drones hay
fighting nSI +33.08 pts clOSIng. Feb 19 meters), m
pillar of Diet changes help adult cholesterol jets. They
for urveill
CCllaw Nlnel ·212.11 ptsclosing. Feb 19 NEW YORK, Feb 21, (RTRS): Older adult can adults' choJe terol and triglyceride levels The dron
on the cut their chole terol level by revamping their re pond to diet change . Aero pace
in the dietary fat intake - even if they are already on In the new tudy, re earchers looked at the ing Israel'
Ibelong lold $1112.75 per oz (London)
chole terol-lowering tatins, a new study find . effect of dietary-fat changes among 900 ny has ai
e been Conventional wisdom holds that people hould Australian adults age 49 and older who were fol- Persian Gul
n and it NYMEKcrude $79.33 pb lowed for J0 years. At the outset, 5 percent were At an in
follow a healthy diet and get regular exercise to
10 real- taking a choJe terol-lowering medication, usual- Israeli offici
Brent crude $77.70 pb help control their chole terol and triglycerides,
they do another type of harmful blood fat. But there ha ly a statin; a decade later, one-quarter were using fleet i orw
e law. for u e agai
3·month S IIBORrate 0.25111 actually been little re earch into how well older Continued on Page 43
ie public I rael bel
ere IS.
entitie
tain law
bli hed
ued in
ire
operat-
before fo corrupt- 0
lion in DOCU
KUWAIT CITY, Feb 21: Members of the Federal conce
Bureau of love tigation (FBI) and Criminal have a
lnve tigation Agency (CIA) are investigating the small s
alleged involvement of enior US Army officials are not
serving in Kuwait and Iraq in corruption and depend
financial irregularitie ,report Al-Shahed daily. employ
The daily quoting reliable sources said the inves- compa
tigation team resides in a hotel on the outskirts of transa
Kuwait. The daily added, initial investigation have How
around
revealed that ome US uppliers are involved in of inter
money laundering, muggling drug and offering tions
huge comrni ion to senior officers in the US army. depart
The ources went on to ay the FBI and tbe CIA commo
members are in touch with some Kuwaiti compa- license
In this photo released by the US Army, soldiers with B Co, 412th Aviation nies and have reportedly reviewed tenders and preven
Support Battalion, Task Force 12, prepare to pull a CH-47 Chinook helicop- deal with the US army, especially tho e related to project
ter into the hold of an Air Force C-17 Globemaster IIIaircraft on Contingency the Camp Arifjan. Kuwait
Operating Base Adder, south of Baghdad, Iraq. As the United States draws Continued on Page 43
down forces in Iraq, the helicopter was transferred to Afghanistan. (AP)
__ ~ ~---r-"'&''' •• In. "",--';1'1;;.1 -yr:; proce-
dure for the i suance of licen e to citizen .
We are at a cro road as we do not know
which authority can resolve the i ue. Is it
po ible for institutions not involved in the n
five-year development plan to implement the d
projects? Forgive us!
By Zahed Matar ,
Email: ahmed@aljaraliah.com
Team in
Continued from Page 1
The ources added the CIA and FBI mem-
bers have violated local laws by bypas ing
legal official channel .
However, the ource added ecurity agen-
cie have concrete evidence about the
involvement of orne enior officer and sup-
pliers about bribery and muggling oil from
Kuwait to Iraq through the 'Gate' used by
coalition troop .
Some local Kuwaiti companie are aid to
be involved in bribes and commis ion to the
US official to win tenders.
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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 month

although its affair became known
The notes of officers regarding the registration of the briberies
included clear letters for the abbreviations of the names of
participants
Million dollars are offered by two Kuwaiti companies to capture
billion 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 received
by the officer, and he was waiting another 5.4 million dollars
before arresting him.
The American authorities pursued one f the two companies and
made 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 they
confessed their involvement in the affair, but the punishments
were stopped suddenly!
A wife of a main personality is involved in a scandal of crime of
briberies 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 the

American 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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1 of 3 12/19/2009 1:07 PM
Department of Justice Press Release

For Immediate Release United States Attorney's Office
May 6, 2009 Northern District of Alabama
Contact: (205) 244-2001
Civilian Contractor, U.S. Army M ajor and His Wife Indicted for Alleged Bribe Scheme Involving
Contracts at Camp Arifjan in Kuwait
Government Seeks Forfeiture of Comm ercial Real Estate, Residences and Expensive
Automobiles
A 23-count indictment unsealed today alleges that a civilian contractor paid more than $2.8 million in
bribes to a U.S. Army contracting official stationed at Camp Arifjan, an Army base in Kuwait, and the
official’s wife, and that the three individuals committed honest services fraud and money laundering
offenses 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 of
engaging in monetary transactions in criminal proceeds.
Hall was originally indicted in the District of Columbia on Nov. 20, 2007, and charged with one count of
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bribery of a U.S. Army contracting official at Camp Arifjan. On Sept. 4, 2008, Hall was charged in a
superseding indictment with one count of conspiracy to commit bribery, two substantive bribery counts
and two honest services wire fraud counts. The government will seek dismissal of the D.C. indictments
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so that Hall can be tried together with his co-conspirators, named in the Alabama indictment unsealed
today.
In the Alabama indictment, U.S. Army Major Eddie Pressley, 39, and his wife, Eurica Pressley, 37, both
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of Harvest, Ala., are charged with conspiracy to commit bribery, one substantive count of bribery, eight
counts of honest services wire fraud, one count of money laundering conspiracy and eleven counts of
engaging in monetary transactions in criminal proceeds.
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The indictment alleges that Hall bribed two Army Majors, Eddie Pressley and James Momon, who
served as Army contracting officials at Camp Arifjan between 2004 and 2006. According to the
indictment unsealed today, from January 2004 to November 2007, Hall operated several companies
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that 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 allegedly
received approximately $21 million from contracts to deliver bottled water and to erect security fencing
for the Department of Defense (DoD) in Kuwait and Iraq.
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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 under
that BPA. As a result, DoD paid FCC approximately $9.3 million. BPAs are contracts in which DoD
agrees to pay a contractor a specified price for supplies and orders them on an as-need basis. An
order under the contract is known as a "call." Eddie Pressley also allegedly arranged for DoD to award
a contract to FCCto construct a security fence at Camp Arifjan, for which DoD paid FCC approximately
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$750,000.
In exchange for these and other official acts, Eddie and Eurica Pressley are alleged to have received
more 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 Solutions
Inc. (EGP) to be incorporated, opened a bank account in the name of EGP, and opened bank accounts
in her name in Dubai, United Arab Emirates and the Cayman Islands. Hall, Eddie Pressley and Eurica
Pressley also allegedly prepared and executed purported consulting agreements for the purpose of
creating the appearance that Eurica Pressley had legitimately earned consulting fees from Hall. Hall
then 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 Hall
approximately $6.4 million. Hall allegedly paid Momon at least $200,000 in exchange for these and
other official acts. On Aug. 13, 2008, Momon pleaded guilty to receiving bribes from various contracting
officers at Camp Arifjan.
"Service members and contractors who place personal gain above taxpayers’ interests during periods
of 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 throughout
the course of this investigation destroys confidence in the Government's ability to act as an effective
2 of 3 12/19/2009 1:07 PM
steward of taxpayer dollars. The Defense Criminal Investigative Service remains committed to working
with law enforcement partners and the Department of Justice to prosecute fraud and public corruption
to the fullest extent of the law."
"Such alleged activity by Army employees or government contractors who work with the Army will not
be tolerated. We will continue to investigate allegations of this nature and do everything in our power to
see that persons responsible are held accountable and brought to justice," said Brigadier General
Rodney 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 corruption
within 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 our
partner agencies."
An indictment is merely an accusation and the defendant is presumed innocent until and unless proven
guilty at trial beyond a reasonable doubt.
The charge of bribery conspiracy carries a maximum prison sentence of five years per count. Each
substantive bribery count and wire fraud count carries a maximum penalty of 15 years in prison. Each
count of money laundering conspiracy carries a maximum prison sentence of 20 years and each count
of monetary transactions in criminal proceeds carries a maximum penalty of 10 years in prison.
d
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 W illiam W elch.
These cases are being investigated by U.S. Army CID and Defense Criminal Investigation Service,
re
FBI, ICE, the Justice Department’s Office of the Inspector General, SIGIR and the Internal Revenue
Service Criminal Investigation. The investigations are continuing.
In October 2006, the Department of Justice announced the formation of a National Procurement Fraud
te
Task Force 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 Procurement Fraud Task Force, chaired by Assistant Attorney
General Breuer, includes the U.S. Attorneys’ Offices, the FBI, the U.S. Inspectors General community,
is
and a number of other federal law enforcement agencies. The cases brought by members of the Task
Force demonstrate the Department of Justice's commitment to helping ensure the integrity of the
government procurement process.
eg
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U
3 of 3 12/19/2009 1:07 PM
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
E-mail | Save | Print | Reprints & Permissions |
Updated 13d ago | Comments37 | Recommend7
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. Ross

Thompson
By Rick Kozak,
Military Times
Rep. Ike Skelton
By Pablo Martinez
Monsivais, AP
Army Maj. John

L. Cockerham
The San Antonio
Express-News via
AP
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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.
"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.

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For Immediate Release

February 17, 2010 U.S. Department of Justice

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

Press Releases | Washington Field Office Home

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

Press Releases | Washington Field Office Home

WASHINGTON – A former civilian employee of the U.S. Department of Defense was

Capt. McClain reported to Maj. Davis in 2004.

Capt. McClain reported to Maj. Davis in 2004.

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trial is set for April.

September 2007: Authorities recover $900,000 with autos view all

I,IARCH 23. 21)10

Colonel to Admit Role in Iraq War Corruption

Capt. McClain reported to Maj. Davis in 2004.

WASHINGTON – A former civilian employee of the U.S. Department of Defense was

This is Google's cache of http://www.usdoj.gov/opa/pr/2008/September/08-crm-778.html. It is a

Department of Justice SealDepartment of Justice

FOR IMMEDIATE RELEASE CRM

Civilian Contractor Charged in Superseding

contributors within the National Procurement Fraud Task Force."

investigate allegations of corruption in Iraq and to support the Department of Justice's

AIN, IRELAND TO PRESS TEL AVIV ON PASSP

UAE summons envoys

Yen/KD 0.00315830 US to keep pressure on Tehran:

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The officer confessed every person who offered to him a bribery,

The two accused companies obtained new contracts past month

Hamed AI-Hamoud wrote:

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

In an unclear way, the government is continuing awarding the

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

15 Million Dollars of bribery from two Kuwaiti companies

* Account statement of the briberies by handwriting of the