Defense Contractor OK’d to Steal Hundreds of Millions
U.S. Attorney John Horn of Georgia along with the Defense Criminal Investigative Service (DCIS), the Army’s Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU), Defense Logistics Agency (DLA) the Federal Bureau of Investigation (FBI) and other agencies foiled an alleged plan of several contractors to continue stealing millions based on fraudulent practices related to US Food Contracts.
Various agencies spent seven years from 2003-2007 completing the investigation. The investigation showed contractors Agility Public Warehousing Co. of Kuwaiti and Sultan Center Food Products Company of Kuwaiti were both negligent in not reducing food prices charged to the US based on savings they received from their vendors because of the size, scope and duration of the contracts as dictated by the terms and conditions of the agreements.
In short, the US was overbilled while the suppliers reaped the savings dollars. Agility agreed to pay $95 million back resolving claims and to not charge an additional $ 249 million it had intended to bill the government. For its transgressions Agility was suspended from government contracting, however in a strange move the suspension was lifted. A DCIS spokesperson said the investigation shows we’re willing to pay top dollar for cheap goods because we’re the good guys and taxpayers can afford it.
For the fraud and the cost of the investigation leaders of this conspiracy plot will be charged with misdemeanor crimes, while the office paper boy who handed US officials the signed contracts will be beheaded and his family will spend life in US prisons. In a press conference US officials said this investigation shows we’re tuff on crime and will prosecute anyone who dares commit fraud against America.
More can be found at https://www.justice.gov/opa/pr/defense-contractor-resolves-criminal-civil-and-administrative-liability-related-food and at https://www.justice.gov/usao-ndga/pr/defense-contractor-agility-resolves-criminal-civil-and-administrative-cases-totaling
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