U.S. Security Firm Indicted for Fraud in Afghanistan

Posted by Bernard Hibbitts, Jurist Legal News and Research at 11:45 AM on October 6, 2008.

The company, called U.S. Protection and Investigation, is accused of getting paid "inflated" amounts for its work on behalf of USAID.

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U.S. Department of Justice officials announced Friday that a private security company contracted by the U.S. Agency for International Development (USAID) and four of its executives and employees have been charged with conspiracy, major fraud and wire fraud in connection with alleged efforts to interfere with U.S. military and reconstruction efforts in Afghanistan. Delmar Dwayne Spier, Barbara Edens Spier, William Felix Dupre, and Behzad Mehr all worked for United States Protection and Investigation (USPI) based in Houston. Commenting on the charges, Assistant Inspector General for Investigations Adrienne R. Rish said that:

USAID and the American companies it relies upon to deliver development programs throughout the world must always be steadfast protectors of U.S. taxpayer funds. As highlighted by this indictment, the USAID Office of Inspector General will vigorously pursue the investigation and prosecution of fraudulent activities and hold accountable those who would attempt to violate the provisions of this integral component of the U.S. foreign assistance program.

The indictment against the USPI staffers alleges they defrauded the United States "by obtaining reimbursement for inflated expenses supposedly incurred by USPI for rental vehicles, fuel and security personnel." If convicted of major fraud the defendants could face up to 10 years and a $1 million fine. The Associated Press has more.

U.S. officials and lawmakers have recently expressed growing concern over allegations of fraud by U.S. subcontractors working in both Afghanistan and Iraq. In May, the Department of Defense Inspector General's Office concluded in a report that the U.S. military had failed to ensure that over $8 billion dollars in Iraq reconstruction contracts awarded between 2001 and 2006 complied with federal anti-fraud laws.

Tagged as: iraq, afghanistan, usaid, united states protection

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Nice [Report this comment] Posted by: RedFoxOne on Oct 7, 2008 9:02 AM Current rating: Not yet rated [1 = poor; 5 = excellent] Imagine that. Seems everyone in Washington now days is a FRAUD. I am sure it runs MUCH deeper than we know right now. How pathetic. Jiff Privacy Center [« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5] !!! [Report this comment] Posted by: GLaw on Oct 7, 2008 9:48 AM Current rating: Not yet rated [1 = poor; 5 = excellent] First of all, the fact there was even $8 billion in "security contracts" to "private contractors" is what people should be paying attention to. Then, add on the fact that...oh, wait a minute...it was waaaay more than $8 billion given to these "private contractors" - that just so happens to be just the amount given to the ones who we decided we no longer wanted to do business with and therefore will throw in prison or bankrupt. Fact one is worse than fact two, people. We need to start questioning the government's use of ANY private contractors. Between our government agencies and the military (which organizes bases that contain components for it to function as a mini-city), they have employees and departments trained or employed in nearly every field imaginable. Let government employees do government jobs - the end. [« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5] A Drop In The Bucket [Report this comment] Posted by: FoonTheElder on Oct 7, 2008 12:42 PM Current rating: Not yet rated [1 = poor; 5 = excellent] A drop in the bucket. Who did they piss off in the administration. It could just be the Bush Administration trying to get the little fish to make it look like they are doing something about corruption, when they are not. [« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

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