United States:A South Carolina defence contractor has pleaded guilty to defrauding the Pentagon out of $20.5 million (€15.19 million) over almost 10 years by adding hundreds of thousands of dollars to the cost of shipping spare parts such as metal washers and lamps.
The parts were bound for key military installations, including Iraq and Afghanistan. In one instance, in 2006, the government paid C&D Distributors $998,798 for shipping two 19-cent washers.
Charlene Corley (47), co-owner of C&D Distributors, used the money to buy luxury homes, cars, plastic surgery and jewellery, according to court documents opened on Thursday in Columbia, South Carolina.
C&D supplied small hardware components, plumbing fixtures and electronic equipment to the military, according to court records. The company used a government system that fast-tracked items to priority military installations. C&D submitted the shipping costs separately and the system paid them automatically.
The Pentagon paid 112 of the fraudulent invoices until the scheme was detected last September. Steps have since been taken to improve internal controls, a Pentagon spokesman said.
Among the invoices was a 2004 order for a single $8.75 elbow pipe that was shipped for $445,640. Also that year, a $10.99 machine thread plug was shipped for $492,096. Last year, six machine screws worth a total of $59.94 were shipped for $403,436.
Ms Corley acknowledged her role in the fraud but maintains her twin sister, co-owner of the business, was the main benefactor.
Her sister took her own life last October after being approached by federal investigators.
- (LA Times-Washington Post service)