Pentagon Paid $998,798 to Ship Two 19-Cent Washers

turdfrgsn

it's a funny name
Mar 7, 2005
2,020
0
261
North Beach, MD
#1
***terrific...that's terrific...***

Pentagon Paid $998,798 to Ship Two 19-Cent Washers (Update3)

By Tony Capaccio

Aug. 16 (Bloomberg) -- A small South Carolina parts supplier collected about $20.5 million over six years from the Pentagon for fraudulent shipping costs, including $998,798 for sending two 19-cent washers to an Army base in Texas, U.S. officials said.

The company also billed and was paid $455,009 to ship three machine screws costing $1.31 each to Marines in Habbaniyah, Iraq, and $293,451 to ship an 89-cent split washer to Patrick Air Force Base in Cape Canaveral, Florida, Pentagon records show.

The owners of C&D Distributors in Lexington, South Carolina -- twin sisters -- exploited a flaw in an automated Defense Department purchasing system: bills for shipping to combat areas or U.S. bases that were labeled ``priority'' were usually paid automatically, said Cynthia Stroot, a Pentagon investigator.

C&D and two of its officials were barred in December from receiving federal contracts. Today, a federal judge in Columbia, South Carolina, accepted the guilty plea of the company and one sister, Charlene Corley, to one count of conspiracy to commit wire fraud and one count of conspiracy to launder money, Assistant U.S. Attorney Kevin McDonald said.

Corley, 46, was fined $750,000. She faces a maximum prison sentence of 20 years on each count and will be sentenced soon, McDonald said in a telephone interview from Columbia. Stroot said her sibling died last year.

Corley didn't immediately return a phone message left on her answering machine at her office in Lexington. Her attorney, Gregory Harris, didn't immediately return a phone call placed to his office in Columbia.

`Got More Aggressive'

C&D's fraudulent billing started in 2000, Stroot, the Defense Criminal Investigative Service's chief agent in Raleigh, North Carolina, said in an interview. ``As time went on they got more aggressive in the amounts they put in.''

The price the military paid for each item shipped rarely reached $100 and totaled just $68,000 over the six years in contrast to the $20.5 million paid for shipping, she said.

``The majority, if not all of these parts, were going to high-priority, conflict areas -- that's why they got paid,'' Stroot said. If the item was earmarked ``priority,'' destined for the military in Iraq, Afghanistan or certain other locations, ``there was no oversight.''

Scheme Detected

The scheme unraveled in September after a purchasing agent noticed a bill for shipping two more 19-cent washers: $969,000. That order was rejected and a review turned up the $998,798 payment earlier that month for shipping two 19-cent washers to Fort Bliss, Texas, Stroot said.

The Pentagon's Defense Logistics Agency orders millions of parts a year. ``These shipping claims were processed automatically to streamline the re-supply of items to combat troops in Iraq and Afghanistan,'' the Justice Department said in a press release announcing today's verdict.

Stroot said the logistics agency and the Defense Finance and Accounting Service, which pays contractors, have made major changes, including thorough evaluations of the priciest shipping charges.

Dawn Dearden, a spokeswoman for the logistics agency, said finance and procurement officials immediately examined all billing records. Stroot said the review showed that fraudulent billing is ``not a widespread problem.''

``C&D was a rogue contractor,'' Stroot said. While other questionable billing has been uncovered, nothing came close to C&D's, she said. The next-highest billing for questionable costs totaled $2 million, she said.

Stroot said the Pentagon hopes to recoup most of the $20.5 million by auctioning homes, beach property, jewelry and ``high- end automobiles'' that the sisters spent the money on.

``They took a lot of vacations,'' she said.

To contact the reporter on this story: Tony Capaccio at acapaccio@bloomberg.net .
 

abudabit

New Wackbag
Oct 10, 2004
14,802
0
0
#2
Hope this leads to a lot more oversight of spending. We put rediculous amounts of money into the military, so much of our taxes goes to it.
 

TheDrip

I'm bi-winning.
Jan 9, 2006
5,051
3
228
#3
Makes you wonder how much out of the $300M a day we spend in Iraq is actually 'legit', and how much is padding somebody's pocket.
 

abudabit

New Wackbag
Oct 10, 2004
14,802
0
0
#4
Makes you wonder how much out of the $300M a day we spend in Iraq is actually 'legit', and how much is padding somebody's pocket.
Even the legit shit there is so much inflation with the way bidding processes work. And then considering 70% of military spending is transportation costs, we must spend so much on transportation for an operation which is halfway across the world.
 

TheDrip

I'm bi-winning.
Jan 9, 2006
5,051
3
228
#5
If you gave me a couple of months, I could probably have this war cost down to $287.00 a day. Lots of internet coupon codes and eBay deals.
 

bethm1b

person of interest
Dec 1, 2006
2,606
2
0
Just past the line.
#7
Even the legit shit there is so much inflation with the way bidding processes work. And then considering 70% of military spending is transportation costs, we must spend so much on transportation for an operation which is halfway across the world.
We should attack Canada.
 

abudabit

New Wackbag
Oct 10, 2004
14,802
0
0
#8
Operation Porn Drop

100,000,000 adult magazines
100 million x $.75 (bulk rate) = $75 million

Buffy The Vampire Slayer feminist / occult propaganda broadcast across region on multiple channels
$10 million

10,000 mobile Thai hookers plus 5,000 security guards
15,000 x $2000 per month = $30 million per month

Shipping Costs
$100 million

For an investment of $185 million and a monthly cost of $30 million we can end this little terrorism problem for ever.
 

bethm1b

person of interest
Dec 1, 2006
2,606
2
0
Just past the line.
#14
yeah, cause bush was the first president to ever have a spending oversight right? its all his fault?
No, it's that he was soooooo distracted by your jokes. How can anyone move on with their lives while you're up to your ass in oilfield style work (wink, wink) and up all night dreaming up this magnificent comedy. You're a regular Henny Youngman!!!!!!!!!!!
 

MAV

Registered User
Nov 23, 2005
10,578
1
368
Denver, CO
#15
No, it's that he was soooooo distracted by your jokes. How can anyone move on with their lives while you're up to your ass in oilfield style work (wink, wink) and up all night dreaming up this magnificent comedy. You're a regular Henny Youngman!!!!!!!!!!!
thats two threads youve used the same reference. punch out already. hack
 
Feb 20, 2006
8,646
549
521
**** Island
#17
No, it's that he was soooooo distracted by your jokes. How can anyone move on with their lives while you're up to your ass in oilfield style work (wink, wink) and up all night dreaming up this magnificent comedy. You're a regular Henny Youngman!!!!!!!!!!!
thats two threads youve used the same reference. punch out already. hack

You two should get a room and fuck it out. :action-sm
 

THE FEZ MAN

as a matter of fact i dont have 5$
Aug 23, 2002
41,338
8,989
768
#18
she should be hung for treason, and war profiteering
 

HummerTuesdays

Another girrrrl!!!
Apr 24, 2005
7,347
0
261
On the road to ruin
#20
thats two threads you've used the same reference. punch out already. hack
It's THREE that I've seen. I'm tired of it too. I'm fuzzy on the rules, but wouldn't this be trolling?

And this isn't anything new. Instead of charging $100 for a 3-cent part, they're over charging on shipping.
 

weakside

He was stupid. I was lucky. I will visit him soon.
Dec 9, 2004
3,871
0
0
California
#23
My wife had a professor in college that used to work in an advisory position for the CIA. Anyway, he said that when it comes out that a toilet seat or lug nut costs thousands of dollars it isn't an oversight but rather a way to funnel money to various projects that people don't necessarily want to have tracked. Not in a bad way, but just as way to keep some projects, staffing, and activities private in order to ensure their success.
 

martianvirus

READY THE ANALPROBES!!!!!!!!
Nov 20, 2005
19,062
134
268
Las Vegas, NV
#24
You people are so stupid. They didn't spend that money on shipping.

It's all about the secret programs.