Judge rules in whistle-blower Iraq case (Custer Battles)

[maddezmom]

WASHINGTON (Reuters) - A U.S. judge ruled on Monday that a whistle-blower case alleging fraud against a U.S. security contractor employed in Iraq could go ahead, but excluded any work paid for with Iraqi oil money.

In what is seen as a test case for U.S. companies working in Iraq, the judge left open a key question over the legal status of the U.S.-led occupation authority that paid the contractor and whether it was subject to U.S. law.

The case involves Custer Battles, an upstart security firm based in Rhode Island that had a contract with the U.S.-led Coalition Provisional Authority in 2003 to guard Baghdad Airport and a later logistical deal.

Former associates of the company sued under the False Claims Act that it defrauded the U.S. government of millions, a claim Custer Battles strongly denies.

more:http://news.yahoo.com/news?tmpl=story&u=/nm/20050711/us_nm/iraq_contract_dc_3

[movonne]

1. vote this up

[Barrett808]

8. Done. Being freeped: 2 stars with 65 votes n/t

[cosmicdot]

9. done - still only 2 stars

sad state of affairs when people rate this article down in order to hide corruption

[mom cat]

2. And the congress had the nerve to go after George Galloway while

leaving the big gaping money scandals alone!

[Synnical]

3. Related DU Post - Stolen funds financed GOP in 2004?

From: spooked

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=203&topic_id=382699

I was doing a little research on the Plame outing and Matt Cooper's lawyer and posted in GD but I think I stumbled onto something relevant here and to the 2004 election.

Please read, this is what I have found so far:

1. Matt Cooper's lawyer is the same lawyer who defended the firm Custer Battles after they were accused of defrauding US taxpayers of $50 million in Iraq.

2. One of the founders of Custer Battles is Michael Battles, a former CIA agent.

3. Custer Battles allegedly used offshore accounts in the Cayman Islands and other "tax haven" countries.

4. Bush refused to pursue the prosecution of Custer Battles.

5. Micahel Battles also coordinated fundraising for the Republican Party!


More at link

[maddezmom]

4. great work...will be interesting to see if they get a pass like Halliburto

[Cocoa]

5. call Paul Bremer in to testify

:toast:

[Synnical]

6. The same MO used in Voter Gate?

Not sure how how reliable the source is . . but, here goes . .

March 8, 2005

http://www.wmadsen.blogspot.com/

Votergate Article -- Still Attacked from the Reichwing
Note on Votergate article: A number of posters on blogs like DU and Daily Kos continue to question the validity of my November story on vote fraud in the presidential election, who paid for it, and where and how the money was obtained. These posters -- who appear to be the same individuals and who post in the same style as Freepers -- are likely GOP blog browsers who, like "Jeff Gannon," are out to spread disinformation and false innuendo.

<snip>

The following article exemplifies how, like the vote fraud, the GOP uses off-shore accounts to commit contract fraud in Iraq. This is the same modus operandi used in Votergate: off-shore accounts, tax havens, illegal money flows, unaccounted for cash, etc. Suggestions to the contrary are another attempt by Rove and his paid web surfers and posters to muddy the waters and keep us off balance.



(Long article - cannot post snippets, sorry.)

[Tigress DEM]

7. Haliburton should be next. I want my 8.8 billion dollars back!

Every crooked SOB ( Scum Of-a Business )should pay us back for their illegal profiteering from this war.

[WhiteTara]

10. done

:kick:

[DeepModem Mom]

11. WP: Judge Allows Suit Alleging Fraud in Iraq

Judge Allows Suit Alleging Fraud in Iraq
By Charles R. Babcock
Washington Post Staff Writer
Tuesday, July 12, 2005; Page D01


A whistle-blower's lawsuit against alleged contract fraud in Iraq can continue, but the U.S. government lacks the authority to police the spending of billions of dollars of Iraqi oil money, a federal judge in Alexandria has ruled.

The decision in the case involving Fairfax security firm Custer Battles LLC was issued yesterday by U.S. District Judge T.S. Ellis III. The rulingwas the first to decide how far the federal False Claims Act can be stretched to cover alleged theft in contracts on the battlefield.

Two former employees had sued Custer Battles over the company's work on two contracts in Iraq. One contract was to provide security to Baghdad International Airport and another was for helping move new currency around the country. The workers claimed the company used shell companies in the Cayman Islands and elsewhere to submit phony bills to the U.S.-led Coalition Provisional Authority, which ran Iraq for the first year after the war.

If the authority were an American agency, there would be little question that the whistle-blowers could pursue their suit under the Fair Claims Act, Ellis said. But because "the essential nature" of the CPA is "shrouded with ambiguity," he ruled, the case depends on the origins of the money at the heart of the allegations.

The judge noted that aid used in rebuilding Iraq came from four sources: U.S. funds appropriated by Congress, "vested" Iraqi funds seized by the United States, "seized" Iraqi funds -- mostly cash -- uncovered by coalition forces occupying the country, and funds from the Development Fund for Iraq....DFI funds (which Ellis said could not be reached by the federal fraud law) included those from the sale of Iraqi oil after the war, transfers from the United Nations oil-for-food program and international donations. But Ellis said the whistle-blowers can continue their suit because they contend that not all of the money in question came from the DFI....


http://www.washingtonpost.com/wp-dyn/content/article/2005/07/11/AR2005071101639.html

[indepat]

12. With so many sources of unaccountable funds, who could have dreamed fraud

might be rampant? We just have to trust the Administration to do the right thing.

[The Backlash Cometh]

13. And why is our government allowed to do business with companies

which are "shroud in ambiguity?"

Ask Cheney.