Texas businessman settles military food fraud case for $15 million

[RamboLiberal]

Source: LA Times

A Texas businessman has agreed to pay $15 million to settle federal allegations of defrauding the government by selling old and potentially dangerous food to the U.S. military to supply combat soldiers serving in Iraq, according to a new federal complaint.

Prosecutors had alleged that Samir Mahmoud Itani and his company American Grocers Ltd. profiteered off the war in Iraq by buying food products with a short shelf life, paying a deep discount for them – and changing the labels to make them seem fresher than they really were.

Itani's privately held American Grocers purchased core staples from some of the country's leading food manufacturers, including Kraft Foods International Inc., the Hershey Co., Frito-Lay North America, Sara Lee Corp. and ConAgra Foodservice, according to the civil complaint filed in the U.S. District Court in Houston and interviews with the whistleblower in the case.

Itani allegedly ordered employees to alter the packaging of a long shopping list -- which included boxes of potato flakes, salad dressings, containers of lobster and ground hamburger patties among other things -- in order to meet military procurement contractor requirements for freshness. And as the country's military presence grew in the Middle East, Itani's business boomed.


Read more: http://www.latimes.com/business/la-fi-1120-military-food-fraud-20101116,0,6883535.story

[gateley]

1. A fine isn't enough. He should be charged with treason (or something). nt

[xchrom]

2. Is he still rich? Did he make more than 15mil?

Was the fine worth the risk of getting caught?

[onethatcares]

8. when the word "settled" appears in a headline it means

it was the cost of doing business. It didn't hurt the individual or company.

Hell, look at the Florida governor rick scott. Columbia/HCA settled a billion dollar lawsuit while he was at the helm and he

got a 300 millon dollar parachute while the company paid a 1.7 BILLION DOLLAR FINE FOR DEFRAUDING THE MEDICARE SYSTEM AND CHEATING THE AMERICAN

TAXPAYER.

The government doesn't want to admit they screwed up big time so they take the deal.

[DCKit]

14. +1 They may have deprived him of half his profit.

Of course, anything punitive would have been "anti-business", and we can't have that.

[Tippy]

3. K&R

[Lucian]

4. What a disgusting human being.

And anyone else who willingly participated in his scheme.

He should go bankrupt for this, but they seemed to have given him a slap on the wrist. :eyes:

[peace13]

6. Jail time and crappy food for him in one our finest privatized units! n/t

[BlueIris]

13. I think human being is stretching it a bit.

Human beings have souls.

[peace13]

5. This is sick!

Endanger the lives of how many and get a fine! What is treason anyway? We need to feed our own troops. Figure it out. Bring them home until we know how to safely feed and house them.

[Pharaoh]

7. Is he a republican?

Just wondering :freak:

[Frisbee]

9. I'd venture a guess and say, almost certainly

Way to support the troops!

[benld74]

10. Ya mean old Sammy? Why, he's a good olboy! Neva happend, got hoodwinked is all,,,,

[Angry Dragon]

11. Jail time

When are we going to get equal justice in this country??

[mbperrin]

12. used this scheme to sell at least $36 million worth of adulterated food

Hell, this is not a fine, just a cost of doing business!

Sumbitch ought to be beaten within an inch of his life, imprisoned for what's left of it, and fed this very food, and only this food, daily.

Jesus.

[awoke_in_2003]

15. I guaran-fucking-ty...

this asshat has a support the troop ribbon on his vehicle. Jail time is what this one needs.

[herbm]

16. If he can casualy pass of $15.M how much did he make off the contracts? Where were the inspectors???

[fascisthunter]

17. Taking Advantage of a War Based on Lies to Make Money

I bet this treasonous piece of crap flies the American flag every chance he gets to hide behind.

[RamboLiberal]

18. There's even more scamming

In addition, the government asserted that the defendants falsified U.S. Department of Agriculture health certifications as well as halal certificates guaranteeing that certain meat products conformed to Islamic religious requirements. The government also contended that Itani directed American Grocers employees to alter shelf lives on some food products he provided to Public Warehousing and to another government contractor, Tamimi Food, to make the items appear fresher.

In a separate criminal case originally filed in 2007, Itani also faced 47 counts, including conspiracy to defraud the government and false claims against the government. That indictment alleged that Itani claimed $2 million in trucking costs he did not incur from 2004 to 2006, namely bogusly billing the government for transporting food that the Defense Department picked up. He struck a plea agreement with Houston federal prosecutors in July 2009: He admitted to one conspiracy count in exchange for a maximum of two years in prison. Itani’s criminal sentencing is scheduled for Dec. 3.

A whistle-blower alerted the government about alleged misconduct in 2005. Delma Pallares, a former American Grocers employee, filed a complaint that was kept under seal while the government conducted its investigation, a Justice Department news release said.

http://www.chron.com/disp/story.mpl/metropolitan/7303012.html

Why isn't this sucker in prison? And serve him his own outdated food!

[bluedigger]

19. He's a lucky man.

I would have shot him for treason. Personally.

[benld74]

20. Timeline Below - Took Time/Money/Manpower to find it

June 2, 2007 - Wins a one-year U.S. Defense Logistics Agency deal worth up to $2.8 billion for food and other distribution.

June 16, 2007 - Says the U.S. military has renewed a five-year deal worth $1.5 billion.

June 30, 2007 - Says it part of a consortium with U.S. firm Dyncorp International which won a $50 billion deal from the U.S. military.

http://www.forbes.com/feeds/afx/2009/11/18/afx7135965.html

THanks BUSHCO, Thanks ALOT!!!

[bluedigger]

21. Son of a bitch!

So, at most, he has been penalized 1% of his gross.:nuke:

(Disclaimer: I am not a math major, or I would have pursued a career as a Master of the Universe on Wall Street and be posting someplace far, far different.)

[HCE SuiGeneris]

22. Pay a fine, immune from prosecution. Hooray for liberty and equality!

:puke:

[KoKo]

23. This is DISGUSTING...He will do it again! It was only a "hand slap" and he goes FREE!

How can the Republicans DEFEND THIS?