Overseas Civilian Contractors

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Officer gets 6 years in Iraq contracting scheme

Marine Times at Military Times

A federal judge on Monday sentenced a Marine Corps captain to six years in federal prison after the officer pleaded guilty to a scheme where he and his wife stole $1.7 million intended for Iraqi reconstruction.

Capt. Eric Schmidt, 40, of Murietta, Calif., had pleaded guilty to wire fraud and filing false federal tax returns, and will have to pay full restitution — that’s $1.69 million to the Defense Department and $458,141 to the Internal Revenue Service — as ordered by U.S. District Court Judge Virginia Phillips during a sentencing hearing in Riverside, Calif.

Schmidt was ordered to report to federal marshals April 11 to begin his prison sentence, Assistant U.S. Attorney Dorothy McLaughlin said. The judge also agreed to a payment plan for the couple to return the money, a process that will include the sale of property they had purchased.

His wife, Janet Schmidt, 39, has agreed to plead guilty to one count of failing to report income on money she received as part of the scheme, and she faces up to three years in prison when she is sentenced March 7.

“The Schmidts defrauded U.S. taxpayers, cheated the Iraqi people and betrayed the trust placed in them,” said Stuart Bowen, inspector general of the Special IG for Iraq Reconstruction, in a statement issued by the U.S. attorney’s office in Riverside. “They will now pay the price for their criminal wrongdoing.”

Read the entire report here

February 7, 2011 Posted by | Civilian Contractors, Contractor Corruption, Department of Defense, Iraq, Pentagon | , , , , , | Leave a comment