boutons_
08-28-2007, 10:15 AM
Iraq Weapons Are a Focus of Criminal Investigations
By James Glanz and Eric Schmitt
The New York Times Tuesday 28 August 2007
Baghdad - Several federal agencies are investigating a widening network of criminal cases involving the purchase and delivery of billions of dollars of weapons, supplies and other materiel to Iraqi and American forces, according to American officials. The officials said it amounted to the largest ring of fraud and kickbacks uncovered in the conflict here, the officials said.
The inquiry has already led to several indictments of Americans, with more expected, the officials said. One of the investigations involves a senior American officer who worked closely with Gen. David H. Petraeus in setting up the logistics operation to supply the Iraqi forces when General Petraeus was in charge of training and equipping those forces in 2004 and 2005, American officials said Monday.
There is no indication that investigators have uncovered any wrongdoing by General Petraeus, the commander of United States forces in Iraq, who through a spokesman declined comment on any legal proceedings.
This article is based on interviews with more than a dozen federal investigators, Congressional, law enforcement and military officials, and specialists in contracting and logistics, in Iraq and Washington, who have direct knowledge of the inquiries. Many spoke on condition of anonymity because there are continuing criminal investigations.
The inquiries are being pursued by the Army Criminal Investigation Command, the Department of Justice, and the Federal Bureau of Investigation, among other agencies.
Over the past year, inquiries by federal oversight agencies have found serious discrepancies in military records of where thousands of weapons intended for Iraqi security forces actually ended up. None of those agencies concluded that weapons found their way to insurgents or militias.
In their public reports, those agencies did not raise the possibility of criminal wrongdoing, and General Petraeus has said that the imperative to provide weapons to Iraqi security forces was more important than maintaining impeccable records.
In an interview on Aug. 18, General Petraeus said that with ill-equipped Iraqi security forces confronting soaring violence across the country in 2004 and 2005, he made a decision not to wait for formal tracking systems to be put in place before distributing the weapons. "We made a decision to arm guys who wanted to fight for their country," General Petraeus said.
But now, American officials said, part of the criminal investigation is focused on Lt. Col. Levonda Joey Selph, who reported directly to General Petraeus and worked closely with him in setting up the logistics operation for what were then the fledgling Iraqi security forces.
That operation moved everything from AK-47s, armored vehicles and plastic explosives to boots and Army uniforms, according to officials who were involved in it. Her former colleagues recall Colonel Selph as a courageous officer who was willing to take substantial personal risks to carry out her mission and was unfailingly loyal to General Petraeus and his directives to move quickly in setting up the logistics operation.
"She was kind of like the Pony Express of the Iraqi security forces," said Victoria Wayne, who was then deputy director of logistics for the overall Iraqi reconstruction program.
Still, Colonel Selph also ran into serious problems with a company she oversaw that failed to live up to a contract it had signed to carry out part of that logistics mission.
It is not clear exactly what Colonel Selph is being investigated for. Colonel Selph, reached by telephone twice on Monday, said she would speak to reporters later but did not answer further messages left for her.
The enormous expenditures of American and Iraqi money on the Iraq reconstruction program, at least $40 billion over all, have been criticized for reasons that go well beyond the corruption cases that have been uncovered so far. Weak oversight, poor planning and seemingly endless security problems have contributed to many of the program's failures.
The investigation into contracts for materiel to Iraqi soldiers and police officers is part of an even larger series of criminal cases. As of Aug. 23, there were a total of 73 criminal investigations related to contract fraud and abuse in Iraq, Kuwait and Afghanistan, Col. Dan Baggio, an Army spokesman said Monday. Twenty civilians and military personnel have been charged in federal court as a result of the inquiries, he said. The inquiries involve contracts valued at more than $5 billion, and Colonel Baggio said the charges so far involve more than $15 million in bribes.
Just last week, an Army major, his wife and his sister were indicted on charges that they accepted up to $9.6 million in bribes for Defense Department contracts in Iraq and Kuwait.
Investigations span the gamut from low-level officials submitting false claims for amounts less than $2,500 to more serious cases involving, conspiracy, bribery, product substitution and bid-rigging or double-billing involving large dollar amounts or more senior contracting officials, Army criminal investigators said. The investigations involve contractors, government employees, local nationals and American military personnel.
Questions about whether the American military could account for the weaponry and other equipment purchased to outfit the Iraqi security forces were raised as early as May of last year, when Senator John W. Warner, Republican of Virginia and then the chairman of the Senate Armed Services Committee, sent a request to an independent federal oversight agency to investigate the matter.
But federal officials say the inquiry has moved far beyond the initial investigation of hundreds of thousands of improperly tracked assault rifles and semiautomatic pistols that grew out of Senator Warner's query. In fact, Senator Warner said in a statement to The New York Times that he was outraged when he was briefed recently on the initial findings of the investigations.
"When I was briefed on the recent developments, I felt so strongly that I asked the Secretary of the Army to brief the Armed Services Committee right away, which he did in early August," Senator Warner said in a statement.
An Army spokesman declined to comment on the briefing by the secretary of the Army, Pete Geren. In a sign of the seriousness of the scandal, the Defense Department Inspector General, Claude M. Kicklighter, will lead an 18-person team to Iraq early next month to investigate contracting practices, said Geoff Morrell, a Pentagon spokesman.
Mr. Morrell said Mr. Kicklighter, a retired three-star Army general, would stay in Iraq indefinitely to investigate contracting abuses, and was empowered to fix problems on the spot or take action if his team identified potential criminal activity.
Congressional officials who have been briefed on the Defense Department inspector general's inquiry said Monday that one focus would be on weapons, munitions and explosives. In addition, Mr. Geren, the Army secretary, is expected to announce later this week the creation of a panel of senior contracting and logistics specialists to address any systemic problems they identify.
Senator Warner's request last May for an independent federal oversight agency to investigate the accountability of weapons and equipment given to Iraqi security forces underscored concern about the issue.
That federal agency, the Special Inspector General for Iraq Reconstruction, responded with a report in October 2006 that found serious discrepancies in American military records of where thousands of the weapons actually ended up. The military did not take the routine step of recording serial numbers for the weapons, the inspector general found, making it difficult to determine whether any of the weapons had ended up in the wrong hands.
In July 2007, the Government Accountability Office found even larger discrepancies, reporting that the American military "cannot fully account for about 110,000 AK-47 rifles, 90,000 pistols, 80 items of body armor, and 115,000 helmets reported as issued to Iraqi security forces as of Sept. 22, 2005."
=====================
Iraq Corruption Whistleblowers Face Penalties
The Associated Press
Friday 24 August 2007
Cases show fraud exposers have been vilified, fired, or detained for weeks.
One after another, the men and women who have stepped forward to report corruption in the massive effort to rebuild Iraq have been vilified, fired and demoted.
Or worse.
For daring to report illegal arms sales, Navy veteran Donald Vance says he was imprisoned by the American military in a security compound outside Baghdad and subjected to harsh interrogation methods.
There were times, huddled on the floor in solitary confinement with that head-banging music blaring dawn to dusk and interrogators yelling the same questions over and over, that Vance began to wish he had just kept his mouth shut.
He had thought he was doing a good and noble thing when he started telling the FBI about the guns and the land mines and the rocket-launchers all of them being sold for cash, no receipts necessary, he said. He told a federal agent the buyers were Iraqi insurgents, American soldiers, State Department workers, and Iraqi embassy and ministry employees.
The seller, he claimed, was the Iraqi-owned company he worked for, Shield Group Security Co.
"It was a Wal-Mart for guns," he says. "It was all illegal and everyone knew it."
So Vance says he blew the whistle, supplying photos and documents and other intelligence to an FBI agent in his hometown of Chicago because he didn't know whom to trust in Iraq.
For his trouble, he says, he got 97 days in Camp Cropper, an American military prison outside Baghdad that once held Saddam Hussein, and he was classified a security detainee.
Also held was colleague Nathan Ertel, who helped Vance gather evidence documenting the sales, according to a federal lawsuit both have filed in Chicago, alleging they were illegally imprisoned and subjected to physical and mental interrogation tactics "reserved for terrorists and so-called enemy combatants."
No Noble Outcomes
Corruption has long plagued Iraq reconstruction. Hundreds of projects may never be finished, including repairs to the country's oil pipelines and electricity system. Congress gave more than $30 billion to rebuild Iraq, and at least $8.8 billion of it has disappeared, according to a government reconstruction audit.
Despite this staggering mess, there are no noble outcomes for those who have blown the whistle, according to a review of such cases by The Associated Press.
"If you do it, you will be destroyed," said William Weaver, professor of political science at the University of Texas-El Paso and senior advisor to the National Security Whistleblowers Coalition.
"Reconstruction is so rife with corruption. Sometimes people ask me, 'Should I do this?' And my answer is no. If they're married, they'll lose their family. They will lose their jobs. They will lose everything," Weaver said.
They have been fired or demoted, shunned by colleagues, and denied government support in whistleblower lawsuits filed against contracting firms.
"The only way we can find out what is going on is for someone to come forward and let us know," said Beth Daley of the Project on Government Oversight, an independent, nonprofit group that investigates corruption. "But when they do, the weight of the government comes down on them. The message is, 'Don't blow the whistle or we'll make your life hell.'
"It's heartbreaking," Daley said. "There is an even greater need for whistleblowers now. But they are made into public martyrs. It's a disgrace. Their lives get ruined."
One Whistleblower Demoted
Bunnatine "Bunny" Greenhouse knows this only too well. As the highest-ranking civilian contracting officer in the U.S. Army Corps of Engineers, she testified before a congressional committee in 2005 that she found widespread fraud in multibillion-dollar rebuilding contracts awarded to former Halliburton subsidiary KBR.
Soon after, Greenhouse was demoted. She now sits in a tiny cubicle in a different department with very little to do and no decision-making authority, at the end of an otherwise exemplary 20-year career.
People she has known for years no longer speak to her.
"It's just amazing how we say we want to remove fraud from our government, then we gag people who are just trying to stand up and do the right thing," she says.
In her demotion, her supervisors said she was performing poorly. "They just wanted to get rid of me," she says softly. The Army Corps of Engineers denies her claims.
"You just don't have happy endings," said Weaver. "She was a wonderful example of a federal employee. They just completely creamed her. In the end, no one followed up, no one cared."
No Regrets
But Greenhouse regrets nothing. "I have the courage to say what needs to be said. I paid the price," she says.
Then there is Robert Isakson, who filed a whistleblower suit against contractor Custer Battles in 2004, alleging the company with which he was briefly associated bilked the U.S. government out of tens of millions of dollars by filing fake invoices and padding other bills for reconstruction work.
He and his co-plaintiff, William Baldwin, a former employee fired by the firm, doggedly pursued the suit for two years, gathering evidence on their own and flying overseas to obtain more information from witnesses. Eventually, a federal jury agreed with them and awarded a $10 million judgment against the now-defunct firm, which had denied all wrongdoing.
It was the first civil verdict for Iraq reconstruction fraud.
But in 2006, U.S. District Judge T.S. Ellis III overturned the jury award. He said Isakson and Baldwin failed to prove that the Coalition Provisional Authority, the U.S.-backed occupier of Iraq for 14 months, was part of the U.S. government. http://spurstalk.com/forums/images/smilies/smilol.gif http://spurstalk.com/forums/images/smilies/smilol.gif
Not a single Iraq whistleblower suit has gone to trial since.
"It's a sad, heartbreaking comment on the system," said Isakson, a former FBI agent who owns an international contracting company based in Alabama. "I tried to help the government, and the government didn't seem to care."
US Shows Little Support?
One way to blow the whistle is to file a "qui tam" lawsuit (taken from the Latin phrase "he who sues for the king, as well as for himself") under the federal False Claims Act.
Signed by Abraham Lincoln in response to military contractors selling defective products to the Union Army, the act allows private citizens to sue on the government's behalf.
The government has the option to sign on, with all plaintiffs receiving a percentage of monetary damages, which are tripled in these suits.
It can be a straightforward and effective way to recoup federal funds lost to fraud. In the past, the Justice Department has joined several such cases and won. They included instances of Medicare and Medicaid overbilling, and padded invoices from domestic contractors.
But the government has not joined a single quit tam suit alleging Iraq reconstruction abuse, estimated in the tens of millions. At least a dozen have been filed since 2004.
"It taints these cases," said attorney Alan Grayson, who filed the Custer Battles suit and several others like it. "If the government won't sign on, then it can't be a very good case that's the effect it has on judges."
The Justice Department declined comment. http://spurstalk.com/forums/images/smilies/smilol.gif http://spurstalk.com/forums/images/smilies/smilol.gif
Placed Under Guard, Kept in Seclusion
Most of the lawsuits are brought by former employees of giant firms. Some plaintiffs have testified before members of Congress, providing examples of fraud they say they witnessed and the retaliation they experienced after speaking up.
Julie McBride testified last year that as a "morale, welfare and recreation coordinator" at Camp Fallujah, she saw KBR exaggerate costs by double- and triple-counting the number of soldiers who used recreational facilities.
She also said the company took supplies destined for a Super Bowl party for U.S. troops and instead used them to stage a celebration for themselves.
"After I voiced my concerns about what I believed to be accounting fraud, Halliburton placed me under guard and kept me in seclusion," she told the committee. "My property was searched, and I was specifically told that I was not allowed to speak to any member of the U.S. military. I remained under guard until I was flown out of the country."
Halliburton and KBR denied her testimony.
She also has filed a whistleblower suit. The Justice Department has said it would not join the action. But last month, a federal judge refused a motion by KBR to dismiss the lawsuit.
"I Thought I Was Among Friends"
Donald Vance, the contractor and Navy veteran detained in Iraq after he blew the whistle on his company's weapons sales, says he has stopped talking to the federal government.
Navy Capt. John Fleming, a spokesman for U.S. detention operations in Iraq, confirmed the detentions but said he could provide no further details because of the lawsuit.
According to their suit, Vance and Ertel gathered photographs and documents, which Vance fed to Chicago FBI agent Travis Carlisle for six months beginning in October 2005. Carlisle, reached by phone at Chicago's FBI field office, declined comment. An agency spokesman also would not comment.
The Iraqi company has since disbanded, according the suit.
Vance said things went terribly wrong in April 2006, when he and Ertel were stripped of their security passes and confined to the company compound.
Panicking, Vance said, he called the U.S. Embassy in Baghdad, where hostage experts got on the phone and told him "you're about to be kidnapped. Lock yourself in a room with all the weapons you can get your hands on."'
The military sent a Special Forces team to rescue them, Vance said, and the two men showed the soldiers where the weapons caches were stored. At the embassy, the men were debriefed and allowed to sleep for a few hours. "I thought I was among friends," Vance said.
An Unspoken Baghdad Rule
The men said they were cuffed and hooded and driven to Camp Cropper, where Vance was held for nearly three months and his colleague for a little more than a month. Eventually, their jailers said they were being held as security internees because their employer was suspected of selling weapons to terrorists and insurgents, the lawsuit said.
The prisoners said they repeatedly told interrogators to contact Carlisle in Chicago. "One set of interrogators told us that Travis Carlisle doesn't exist. Then some others would say, 'He says he doesn't know who you are,"' Vance said.
Released first was Ertel, who has returned to work in Iraq for a different company. Vance said he has never learned why he was held longer. His own interrogations, he said, seemed focused on why he reported his information to someone outside Iraq.
And then one day, without explanation, he was released.
"They drove me to Baghdad International Airport and dumped me," he said.
When he got home, he decided to never call the FBI again. He called a lawyer, instead.
"There's an unspoken rule in Baghdad," he said. "Don't snitch on people and don't burn bridges."
For doing both, Vance said, he paid with 97 days of his life.
By James Glanz and Eric Schmitt
The New York Times Tuesday 28 August 2007
Baghdad - Several federal agencies are investigating a widening network of criminal cases involving the purchase and delivery of billions of dollars of weapons, supplies and other materiel to Iraqi and American forces, according to American officials. The officials said it amounted to the largest ring of fraud and kickbacks uncovered in the conflict here, the officials said.
The inquiry has already led to several indictments of Americans, with more expected, the officials said. One of the investigations involves a senior American officer who worked closely with Gen. David H. Petraeus in setting up the logistics operation to supply the Iraqi forces when General Petraeus was in charge of training and equipping those forces in 2004 and 2005, American officials said Monday.
There is no indication that investigators have uncovered any wrongdoing by General Petraeus, the commander of United States forces in Iraq, who through a spokesman declined comment on any legal proceedings.
This article is based on interviews with more than a dozen federal investigators, Congressional, law enforcement and military officials, and specialists in contracting and logistics, in Iraq and Washington, who have direct knowledge of the inquiries. Many spoke on condition of anonymity because there are continuing criminal investigations.
The inquiries are being pursued by the Army Criminal Investigation Command, the Department of Justice, and the Federal Bureau of Investigation, among other agencies.
Over the past year, inquiries by federal oversight agencies have found serious discrepancies in military records of where thousands of weapons intended for Iraqi security forces actually ended up. None of those agencies concluded that weapons found their way to insurgents or militias.
In their public reports, those agencies did not raise the possibility of criminal wrongdoing, and General Petraeus has said that the imperative to provide weapons to Iraqi security forces was more important than maintaining impeccable records.
In an interview on Aug. 18, General Petraeus said that with ill-equipped Iraqi security forces confronting soaring violence across the country in 2004 and 2005, he made a decision not to wait for formal tracking systems to be put in place before distributing the weapons. "We made a decision to arm guys who wanted to fight for their country," General Petraeus said.
But now, American officials said, part of the criminal investigation is focused on Lt. Col. Levonda Joey Selph, who reported directly to General Petraeus and worked closely with him in setting up the logistics operation for what were then the fledgling Iraqi security forces.
That operation moved everything from AK-47s, armored vehicles and plastic explosives to boots and Army uniforms, according to officials who were involved in it. Her former colleagues recall Colonel Selph as a courageous officer who was willing to take substantial personal risks to carry out her mission and was unfailingly loyal to General Petraeus and his directives to move quickly in setting up the logistics operation.
"She was kind of like the Pony Express of the Iraqi security forces," said Victoria Wayne, who was then deputy director of logistics for the overall Iraqi reconstruction program.
Still, Colonel Selph also ran into serious problems with a company she oversaw that failed to live up to a contract it had signed to carry out part of that logistics mission.
It is not clear exactly what Colonel Selph is being investigated for. Colonel Selph, reached by telephone twice on Monday, said she would speak to reporters later but did not answer further messages left for her.
The enormous expenditures of American and Iraqi money on the Iraq reconstruction program, at least $40 billion over all, have been criticized for reasons that go well beyond the corruption cases that have been uncovered so far. Weak oversight, poor planning and seemingly endless security problems have contributed to many of the program's failures.
The investigation into contracts for materiel to Iraqi soldiers and police officers is part of an even larger series of criminal cases. As of Aug. 23, there were a total of 73 criminal investigations related to contract fraud and abuse in Iraq, Kuwait and Afghanistan, Col. Dan Baggio, an Army spokesman said Monday. Twenty civilians and military personnel have been charged in federal court as a result of the inquiries, he said. The inquiries involve contracts valued at more than $5 billion, and Colonel Baggio said the charges so far involve more than $15 million in bribes.
Just last week, an Army major, his wife and his sister were indicted on charges that they accepted up to $9.6 million in bribes for Defense Department contracts in Iraq and Kuwait.
Investigations span the gamut from low-level officials submitting false claims for amounts less than $2,500 to more serious cases involving, conspiracy, bribery, product substitution and bid-rigging or double-billing involving large dollar amounts or more senior contracting officials, Army criminal investigators said. The investigations involve contractors, government employees, local nationals and American military personnel.
Questions about whether the American military could account for the weaponry and other equipment purchased to outfit the Iraqi security forces were raised as early as May of last year, when Senator John W. Warner, Republican of Virginia and then the chairman of the Senate Armed Services Committee, sent a request to an independent federal oversight agency to investigate the matter.
But federal officials say the inquiry has moved far beyond the initial investigation of hundreds of thousands of improperly tracked assault rifles and semiautomatic pistols that grew out of Senator Warner's query. In fact, Senator Warner said in a statement to The New York Times that he was outraged when he was briefed recently on the initial findings of the investigations.
"When I was briefed on the recent developments, I felt so strongly that I asked the Secretary of the Army to brief the Armed Services Committee right away, which he did in early August," Senator Warner said in a statement.
An Army spokesman declined to comment on the briefing by the secretary of the Army, Pete Geren. In a sign of the seriousness of the scandal, the Defense Department Inspector General, Claude M. Kicklighter, will lead an 18-person team to Iraq early next month to investigate contracting practices, said Geoff Morrell, a Pentagon spokesman.
Mr. Morrell said Mr. Kicklighter, a retired three-star Army general, would stay in Iraq indefinitely to investigate contracting abuses, and was empowered to fix problems on the spot or take action if his team identified potential criminal activity.
Congressional officials who have been briefed on the Defense Department inspector general's inquiry said Monday that one focus would be on weapons, munitions and explosives. In addition, Mr. Geren, the Army secretary, is expected to announce later this week the creation of a panel of senior contracting and logistics specialists to address any systemic problems they identify.
Senator Warner's request last May for an independent federal oversight agency to investigate the accountability of weapons and equipment given to Iraqi security forces underscored concern about the issue.
That federal agency, the Special Inspector General for Iraq Reconstruction, responded with a report in October 2006 that found serious discrepancies in American military records of where thousands of the weapons actually ended up. The military did not take the routine step of recording serial numbers for the weapons, the inspector general found, making it difficult to determine whether any of the weapons had ended up in the wrong hands.
In July 2007, the Government Accountability Office found even larger discrepancies, reporting that the American military "cannot fully account for about 110,000 AK-47 rifles, 90,000 pistols, 80 items of body armor, and 115,000 helmets reported as issued to Iraqi security forces as of Sept. 22, 2005."
=====================
Iraq Corruption Whistleblowers Face Penalties
The Associated Press
Friday 24 August 2007
Cases show fraud exposers have been vilified, fired, or detained for weeks.
One after another, the men and women who have stepped forward to report corruption in the massive effort to rebuild Iraq have been vilified, fired and demoted.
Or worse.
For daring to report illegal arms sales, Navy veteran Donald Vance says he was imprisoned by the American military in a security compound outside Baghdad and subjected to harsh interrogation methods.
There were times, huddled on the floor in solitary confinement with that head-banging music blaring dawn to dusk and interrogators yelling the same questions over and over, that Vance began to wish he had just kept his mouth shut.
He had thought he was doing a good and noble thing when he started telling the FBI about the guns and the land mines and the rocket-launchers all of them being sold for cash, no receipts necessary, he said. He told a federal agent the buyers were Iraqi insurgents, American soldiers, State Department workers, and Iraqi embassy and ministry employees.
The seller, he claimed, was the Iraqi-owned company he worked for, Shield Group Security Co.
"It was a Wal-Mart for guns," he says. "It was all illegal and everyone knew it."
So Vance says he blew the whistle, supplying photos and documents and other intelligence to an FBI agent in his hometown of Chicago because he didn't know whom to trust in Iraq.
For his trouble, he says, he got 97 days in Camp Cropper, an American military prison outside Baghdad that once held Saddam Hussein, and he was classified a security detainee.
Also held was colleague Nathan Ertel, who helped Vance gather evidence documenting the sales, according to a federal lawsuit both have filed in Chicago, alleging they were illegally imprisoned and subjected to physical and mental interrogation tactics "reserved for terrorists and so-called enemy combatants."
No Noble Outcomes
Corruption has long plagued Iraq reconstruction. Hundreds of projects may never be finished, including repairs to the country's oil pipelines and electricity system. Congress gave more than $30 billion to rebuild Iraq, and at least $8.8 billion of it has disappeared, according to a government reconstruction audit.
Despite this staggering mess, there are no noble outcomes for those who have blown the whistle, according to a review of such cases by The Associated Press.
"If you do it, you will be destroyed," said William Weaver, professor of political science at the University of Texas-El Paso and senior advisor to the National Security Whistleblowers Coalition.
"Reconstruction is so rife with corruption. Sometimes people ask me, 'Should I do this?' And my answer is no. If they're married, they'll lose their family. They will lose their jobs. They will lose everything," Weaver said.
They have been fired or demoted, shunned by colleagues, and denied government support in whistleblower lawsuits filed against contracting firms.
"The only way we can find out what is going on is for someone to come forward and let us know," said Beth Daley of the Project on Government Oversight, an independent, nonprofit group that investigates corruption. "But when they do, the weight of the government comes down on them. The message is, 'Don't blow the whistle or we'll make your life hell.'
"It's heartbreaking," Daley said. "There is an even greater need for whistleblowers now. But they are made into public martyrs. It's a disgrace. Their lives get ruined."
One Whistleblower Demoted
Bunnatine "Bunny" Greenhouse knows this only too well. As the highest-ranking civilian contracting officer in the U.S. Army Corps of Engineers, she testified before a congressional committee in 2005 that she found widespread fraud in multibillion-dollar rebuilding contracts awarded to former Halliburton subsidiary KBR.
Soon after, Greenhouse was demoted. She now sits in a tiny cubicle in a different department with very little to do and no decision-making authority, at the end of an otherwise exemplary 20-year career.
People she has known for years no longer speak to her.
"It's just amazing how we say we want to remove fraud from our government, then we gag people who are just trying to stand up and do the right thing," she says.
In her demotion, her supervisors said she was performing poorly. "They just wanted to get rid of me," she says softly. The Army Corps of Engineers denies her claims.
"You just don't have happy endings," said Weaver. "She was a wonderful example of a federal employee. They just completely creamed her. In the end, no one followed up, no one cared."
No Regrets
But Greenhouse regrets nothing. "I have the courage to say what needs to be said. I paid the price," she says.
Then there is Robert Isakson, who filed a whistleblower suit against contractor Custer Battles in 2004, alleging the company with which he was briefly associated bilked the U.S. government out of tens of millions of dollars by filing fake invoices and padding other bills for reconstruction work.
He and his co-plaintiff, William Baldwin, a former employee fired by the firm, doggedly pursued the suit for two years, gathering evidence on their own and flying overseas to obtain more information from witnesses. Eventually, a federal jury agreed with them and awarded a $10 million judgment against the now-defunct firm, which had denied all wrongdoing.
It was the first civil verdict for Iraq reconstruction fraud.
But in 2006, U.S. District Judge T.S. Ellis III overturned the jury award. He said Isakson and Baldwin failed to prove that the Coalition Provisional Authority, the U.S.-backed occupier of Iraq for 14 months, was part of the U.S. government. http://spurstalk.com/forums/images/smilies/smilol.gif http://spurstalk.com/forums/images/smilies/smilol.gif
Not a single Iraq whistleblower suit has gone to trial since.
"It's a sad, heartbreaking comment on the system," said Isakson, a former FBI agent who owns an international contracting company based in Alabama. "I tried to help the government, and the government didn't seem to care."
US Shows Little Support?
One way to blow the whistle is to file a "qui tam" lawsuit (taken from the Latin phrase "he who sues for the king, as well as for himself") under the federal False Claims Act.
Signed by Abraham Lincoln in response to military contractors selling defective products to the Union Army, the act allows private citizens to sue on the government's behalf.
The government has the option to sign on, with all plaintiffs receiving a percentage of monetary damages, which are tripled in these suits.
It can be a straightforward and effective way to recoup federal funds lost to fraud. In the past, the Justice Department has joined several such cases and won. They included instances of Medicare and Medicaid overbilling, and padded invoices from domestic contractors.
But the government has not joined a single quit tam suit alleging Iraq reconstruction abuse, estimated in the tens of millions. At least a dozen have been filed since 2004.
"It taints these cases," said attorney Alan Grayson, who filed the Custer Battles suit and several others like it. "If the government won't sign on, then it can't be a very good case that's the effect it has on judges."
The Justice Department declined comment. http://spurstalk.com/forums/images/smilies/smilol.gif http://spurstalk.com/forums/images/smilies/smilol.gif
Placed Under Guard, Kept in Seclusion
Most of the lawsuits are brought by former employees of giant firms. Some plaintiffs have testified before members of Congress, providing examples of fraud they say they witnessed and the retaliation they experienced after speaking up.
Julie McBride testified last year that as a "morale, welfare and recreation coordinator" at Camp Fallujah, she saw KBR exaggerate costs by double- and triple-counting the number of soldiers who used recreational facilities.
She also said the company took supplies destined for a Super Bowl party for U.S. troops and instead used them to stage a celebration for themselves.
"After I voiced my concerns about what I believed to be accounting fraud, Halliburton placed me under guard and kept me in seclusion," she told the committee. "My property was searched, and I was specifically told that I was not allowed to speak to any member of the U.S. military. I remained under guard until I was flown out of the country."
Halliburton and KBR denied her testimony.
She also has filed a whistleblower suit. The Justice Department has said it would not join the action. But last month, a federal judge refused a motion by KBR to dismiss the lawsuit.
"I Thought I Was Among Friends"
Donald Vance, the contractor and Navy veteran detained in Iraq after he blew the whistle on his company's weapons sales, says he has stopped talking to the federal government.
Navy Capt. John Fleming, a spokesman for U.S. detention operations in Iraq, confirmed the detentions but said he could provide no further details because of the lawsuit.
According to their suit, Vance and Ertel gathered photographs and documents, which Vance fed to Chicago FBI agent Travis Carlisle for six months beginning in October 2005. Carlisle, reached by phone at Chicago's FBI field office, declined comment. An agency spokesman also would not comment.
The Iraqi company has since disbanded, according the suit.
Vance said things went terribly wrong in April 2006, when he and Ertel were stripped of their security passes and confined to the company compound.
Panicking, Vance said, he called the U.S. Embassy in Baghdad, where hostage experts got on the phone and told him "you're about to be kidnapped. Lock yourself in a room with all the weapons you can get your hands on."'
The military sent a Special Forces team to rescue them, Vance said, and the two men showed the soldiers where the weapons caches were stored. At the embassy, the men were debriefed and allowed to sleep for a few hours. "I thought I was among friends," Vance said.
An Unspoken Baghdad Rule
The men said they were cuffed and hooded and driven to Camp Cropper, where Vance was held for nearly three months and his colleague for a little more than a month. Eventually, their jailers said they were being held as security internees because their employer was suspected of selling weapons to terrorists and insurgents, the lawsuit said.
The prisoners said they repeatedly told interrogators to contact Carlisle in Chicago. "One set of interrogators told us that Travis Carlisle doesn't exist. Then some others would say, 'He says he doesn't know who you are,"' Vance said.
Released first was Ertel, who has returned to work in Iraq for a different company. Vance said he has never learned why he was held longer. His own interrogations, he said, seemed focused on why he reported his information to someone outside Iraq.
And then one day, without explanation, he was released.
"They drove me to Baghdad International Airport and dumped me," he said.
When he got home, he decided to never call the FBI again. He called a lawyer, instead.
"There's an unspoken rule in Baghdad," he said. "Don't snitch on people and don't burn bridges."
For doing both, Vance said, he paid with 97 days of his life.