One of the myriad of companies that supplies food to our troops faces federal charges that it overcharged for its products.
Public Warehousing Company KSC is charged with conspiracy to defraud the United States, committing major fraud against the United States, making false statements, submitting false claims and wire fraud, a six-count indictment states.
The company obtained contracts in May 2003, February 2005 and July 2005 to feed U.S. troops in Iraq, Kuwait and Jordan, said the U.S. attorney's office for the Northern District of Georgia, where the charges were filed.
"This indictment is the result of a multiyear probe into abuses in vendor contracts in the Middle East involving the illegal inflation of prices in contracts to feed our troops," said F. Gentry Shelnutt, who is serving as acting U.S. attorney on the case. "The indictment alleges PWC submitted false information and manipulated prices to overcharge for food."
The charges are the result of the federal government getting involved in a whistleblower suit filed by one of Public Warehousing's partners.
According to the indictment, Public Warehousing and several unidentified co-conspirators overcharged for fruits and vegetables, didn't pass on promised rebates and gave false bills to the government. It's received several contracts since 2003. No word as of yet on how much Public Warehousing is accused of bilking--but if found guilty, it'll be on the hook for twice its ill-gotten gains or twice the loss to the United States.
Full press release is here--apparently there might be more indictments coming soon.