Long Path to Courtroom for War Contractor Accused of Bribery

by T Christian Miller at Propublica June 1, 2011

For proof that the wheels of justice turn slowly for private contractors in Iraq and Afghanistan, and sometimes bog down all together, look no further than the indictment [1] this week of George H. Lee, American businessman.

A federal grand jury indicted Lee on charges that he allegedly paid bribes to military officers to win contracts for his company, Lee Dynamics International. The company, a family affair that included Lee’s son, Justin W. Lee (also indicted this week), provided bottled water, food, living quarters, and all kinds of everyday items that form the backbone of a military logistical operation. George Lee also stands accused of setting up fake bank accounts, buying airplane tickets for contracting officials, and sending them on spa trips.

According to prosecutors, Lee’s wrongdoing began back in 2004 — almost seven years ago.

Several military officials were held accountable for their roles in his schemes long ago. Maj. John Cockerham pleaded guilty to taking millions of dollars in bribes from Lee and received a 17-year prison sentence [2]. Maj. Gloria Davis killed herself shortly after allegedly confessing to authorities that she had taken a $225,000 payment from Lee.

But it has proven exceptionally difficult to bring Lee himself to justice. Even the indictments this week do not signal the end of the hunt. Lee remains at large, perhaps in Kuwait or Dubai [3]. His son is expected to appear in court in the U.S. The government barred Lee Dynamics from receiving further contracts in 2007.

The case provides further evidence of how difficult it is to secure convictions against private contractors in Iraq and Afghanistan, no matter how severe the crime. A number of private security guards accused of killing civilians have escaped sanction. Most notably, a judge dismissed [4] all charges in 2009 against five guards from the firm Blackwater for killing 17 Iraqis in a well-publicized shooting in Nisour square.

After nearly a decade of war, few mechanisms exist to investigate wrongdoing by the private sector, despite increasing reliance on contractors by the U.S. military. Attempts to bring private contractors under the military justice system have stalled. When federal investigators with the FBI or the inspectors general for Iraq and Afghanistan have attempted to collect evidence for cases filed in civilian courts, they have struggled to meet the demands of the American justice system.

We’ve annotated the indictment [1] to note highlights of the case and what it shows about difficulty of achieving accountability under the largest, most expensive U.S. reconstruction effort since the Marshall Plan.

Please see the original at ProPublica

Colonel to Admit Role in Iraq War Corruption

U.S. Army Veteran Is Accused of Taking More Than $50,000 in Bribes

By JOEL MILLMAN at WSJ

A 26-year veteran of the U.S. Army is the latest and highest-ranking officer to plead guilty in a contractor-corruption scandal rising out of the Iraq War.

Col. Kevin A. Davis, who retired from the military in 2005, has agreed to plead guilty next month in a U.S. court in Washington, D.C., according to federal court documents.

Col. Davis is charged with taking more than $50,000 in bribes to help a Kuwait-based contractor win a rigged bid to operate weapons warehouses in Iraq. Col. Davis then went to work for that same company, American Logistics Services, as a senior executive after leaving the military. Col. Davis later joined Lee Dynamics International, which was formed by George Lee, a U.S. citizen who also directed ALS.

LDI was banned from government service after being investigated in probes of defense-contract fraud in Iraq and Kuwait. Mr. Lee is under investigation, and officials say they will likely seek an indictment. LDI challenged the ban in court, but it was upheld. Mr. Lee’s attorney says his client denies any wrongdoing by both himself and any companies he was involved with.

Col. Davis declined through his attorney to speak about the case. He is expected to cooperate with federal investigators after his guilty plea is accepted, according to his lawyer.

Another officer expected to plead guilty next month is Capt. Markus E. McClain, according to federal officials familiar with the investigation. The Mississippian is charged with taking $15,000 to help a Kuwait-based firm secure a contract to provide vehicles to military convoys supplying bases in Iraq.

Capt. McClain, 31, didn’t respond to requests for comment. He served in Kuwait in 2004 after being called to active duty from the Mississippi Army National Guard. A guard spokesman said he resigned from his unit on March 1.

Col. Davis, 52 years old, is the highest-ranking officer to be implicated in a scheme known among federal investigators as the Cockerham Case, for Major John Cockerham, who pleaded guilty last year to receiving more than $9 million in illegal payments for defense contracts, primarily to service the Camp Arifjan military base in Kuwait.

Early in the probe, Major Gloria Dean Davis, came under suspicion by investigators in the case. She committed suicide in Baghdad in December 2006, hours after confirming she received more than $225,000 from the same contractor Col. Davis later joined as a civilian, LDI.

The two officers weren’t related, however investigators familiar with the case say they were involved romantically.

Capt. McClain reported to Maj. Davis in 2004.  Read this story in it’s entirety at WSJ