Contractor (and Fox News commentator) accused of fraud in Iraq

[Newsjock]

http://seattletimes.nwsource.com/html/nationworld/2002058470_contract09.html

By T. Christian Miller
Los Angeles Times

WASHINGTON — One of the U.S. security companies operating in Iraq has been suspended from doing business with the U.S. government after being accused of overbilling millions of dollars through a series of sham companies.

Security company Custer Battles sent fake bills to the U.S.-financed Coalition Provisional Authority, which ran Iraq under American occupation, according to a U.S. Air Force memo obtained by the Los Angeles Times.

The company, which provided security at the Baghdad airport, is also the target of a suit unsealed yesterday accusing it of systematically bilking U.S. taxpayers and threatening a worker and his 14-year-old son at gunpoint.

... The company's founders are Scott Custer, a former Army Ranger and defense consultant, and former CIA officer Michael Battles, who ran for Congress in Rhode Island in 2002 and was defeated in the Republican primary. The Federal Election Commission fined Battles for misrepresenting campaign contributions.

Battles is a Fox News Channel commentator.

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[MichaelHarris]

1. Cool

now Fow will have 2 felons on staff. Ollie and this guy.

[Celeborn Skywalker]

2. Also,

Didn't Shepard Smith try to run over somebody during the 200 election? I seem to remember something like that happening.

[SoCalDem]

3. yes he did.. and another "Faux-ie" was caught smuggling Iraqi

treasures out of the country..:)

They are a curious bunch :)

[rooboy]

6. Yep. Here he is...

[riverwalker]

7. Smith had to apologize on the air

a few years ago. He made some jokes and comments about Bobby Sands' death from the hunger strike on a "this day in history" bit on his show. I never heard what he actually said, only the apology. He said they were flooded with complaints. These morons don't understand anything.

[ladybugg33]

13. I remember that. I hope the other networks carry this story big time!!

FOX is always the first to jump on other networks when their employees do someothing wrong.

[lil-petunia]

9. sheesh, you'd think it was chicago or something

[truthisfreedom]

4. nice.

[Disturbed]

5. Fox thieves...

and their so-called reporters are almost all liars.

When Kerry is elected I hope he moves forward on suspending their broadcast license.

[AP]

8. This American Life did a long story about this company.

http://www.thislife.org/pages/descriptions/04/266.html

[bushwakker]

10. War Profiteers - Scum of the Earth - Phony Patriots. Jail the Bastard.

[donkeyotay]

11. So, are the Republicans a political party or a crime family?

More from the link:

Custer Battles was a newly formed company with no experience in the security industry when it landed one of the first contracts issued in Iraq…

Using Nepalese Ghurkas hired from abroad to fill out its limited staff, the company quickly expanded its presence, winning a contract in August 2003 to supply logistical support for a massive currency exchange in which Iraqis turned in their old dinars for new currency.

That contract committed the Coalition Provisional Authority to paying for all the company's costs for setting up centers where the exchanges would take place, plus a 25 percent markup for overhead and profit, according to the Air Force memo. Custer Battles then created a series of "sham companies" registered in foreign countries, the memo said.

(emphasis added)

So not only are they outsourcing, but they were involved in the currency exchange - a crook's dream opportunity, which I think has already been considered a shady operation. And they were qualified to handle this tricky operation based on what? Glad someone is profitting from the quagmire...

[maryallen]

12. Currency exchange was ...

Chalabi's gig ...

[donkeyotay]

15. So it was... hmmm, I smell smoke (nt)

[SoCalDem]

17. Chalabi was practically an anchor at Fox during the war run-up

FoxNews just :loveya:ed Chalabi, until the little dictator told them he was a "bad man"..

[mumon]

14. THAT is totally blog-worthy!

The really interesting question is: how did they get those contracts in the first place?

They were no bid, but that company had no experience.

[crossroads]

16. Go figure... are you saying he is a Republican AND a crook?

Nah... Hard to believe.
:eyes: :dem: