Jury says Custer-Battles liable for fraud

Iraq war profiteering is wrong? Unbelievable!

Last spring, Deep Blade Journal had a couple of posts referring to the extensive wrongdoing and theft by Iraq contractors being paid with Iraqi and US-taxpayer funds. See here and here for details.

Now a federal jury has found that Coalition Provisional Authority (CPA) contractor Custer Battles LLC ``committed fraud in 37 instances in connection with a $9 million contract to help distribute new currency in Iraq,'' according to a story published in USA Today's weekend edition.

The principles in Custer-Battles, Scott Custer and Michael Battles, deny having committed fraud. I am curious about what happens next as the case winds its way through appeals courts. The judgement is based on the Civil-War era False Claims Act in an action brought by former Custer-Battles employees. So far, there is no mention that Executive Order 13303 could be a basis for immunity from fraud on the part of a CPA contractor. And so far, the Bush administration is not a participant in prosecuting fraud against US taxpayers and Iraqis alike. According to USA Today, ``The Justice Department declined to participate. Charles Miller, a department spokesman, declined to comment.''