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Fraud in Iraq Admitted in Guilty Plea

by TChris

Robert J. Stein Jr. was a contracting official for the Coalition Provisional Authority, the U.S.-controlled entity that ran Iraq for more than a year after the president's "mission accomplished" declaration. Stein helped bring a culture of corruption to the CPA. He's scheduled to enter a guilty plea today to charges that he conspired with Philip Bloom and others to steal reconstruction money and to enrich his friends while pocketing more than a million dollars.

Stein, who has an earlier federal fraud conviction, used the money he stole or was paid by Bloom to buy a single-engine Cessna airplane, a top-of-the-line Porsche and other cars, grenade launchers, machine guns, diamond rings and other jewelry, and property in North Carolina, he said in his signed statement. Stein said he helped steer more than $8.6 million in contracts to companies controlled by Bloom, a U.S. citizen who has lived in Romania for many years.

Bloom also faces conspiracy and money laundering charges. Court documents indicate that five "U.S. Army Reserve officers also have been implicated in the theft and kickback scheme."

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    Re: Fraud in Iraq Admitted in Guilty Plea (none / 0) (#1)
    by Dadler on Wed Feb 01, 2006 at 10:29:49 AM EST
    Ah, the good ol' capitalist ethic at work. I'm sure, ahem, that this is just one bad apple in a barrel.

    Re: Fraud in Iraq Admitted in Guilty Plea (none / 0) (#2)
    by scarshapedstar on Wed Feb 01, 2006 at 10:38:24 AM EST
    A Porsche, machine guns and grenade launchers... if it were an Aston Martin I'd strongly suspect he's a 00 Agent. As it stands, I'm leaning more towards "well-connected Freeper".

    Re: Fraud in Iraq Admitted in Guilty Plea (none / 0) (#3)
    by Dadler on Wed Feb 01, 2006 at 11:06:08 AM EST
    scar, good wit, my friend. 007 indeed.

    Re: Fraud in Iraq Admitted in Guilty Plea (none / 0) (#4)
    by Che's Lounge on Wed Feb 01, 2006 at 02:26:35 PM EST
    Make him stand on a streetcorner in Falloojah with a sign that says: "I got rich off your dead relatives."

    Re: Fraud in Iraq Admitted in Guilty Plea (none / 0) (#5)
    by jondee on Wed Feb 01, 2006 at 02:44:09 PM EST
    People like Stein began salivating back when Bush first started rattling his sabre (in public). One of our patriotic body armour suppliers just through a ten million dollar "holy" Bat Mitzvah party for his daughter - but hey, those profits benefit us all.

    Re: Fraud in Iraq Admitted in Guilty Plea (none / 0) (#6)
    by squeaky on Wed Feb 01, 2006 at 04:43:04 PM EST
    riverbend, girl blog from Iraq, has a new post about the current state of affairs. Her previous post compares reconstruction after '91 to reconstruction now which is just not happening even though contractors are getting rich. Always worth reading. A fine writer describing the Iraqi perspective as she sees it. Very unhappy that America has liberated her country into a theocracy.

    Re: Fraud in Iraq Admitted in Guilty Plea (none / 0) (#7)
    by jen on Thu Feb 02, 2006 at 04:46:43 AM EST
    What a surprise. Waste, fraud, and abuse was the reson the military replaced contractors in the first place. I take it for granted that the people in power who decided to 'save money' by reducing the size of the military by using contractors know this. No news here.

    Re: Fraud in Iraq Admitted in Guilty Plea (none / 0) (#8)
    by squeaky on Thu Feb 02, 2006 at 03:59:38 PM EST
    Atrios has an update or a backdate so to speak
    The case is a painful reminder of the absolute dearth of planning for rebuilding Iraq after the war. According to reporting by James Glanz in The Times, Mr. Stein was convicted of a fraud-related felony in 1996 and also fired from a job in 2002 for falsifying payroll records and invoices. The American government then sent him to help oversee construction projects in Hilla and the Shiite holy city of Karbala, with $82 million in taxpayer funds.
    This Administration really knows how to pick 'em. NYT Editorial Nov. 22, '05

    Re: Fraud in Iraq Admitted in Guilty Plea (none / 0) (#9)
    by john horse on Fri Feb 03, 2006 at 04:00:20 AM EST
    Glad to find out what happened to the $2 million. Now there is only $8.8 billion more unaccounted for in Iraq.