Kuwaiti Firm Charged With Defrauding U.S.
Prosecutors: Company Made False Statements To Overcharge For Food
POSTED: 11:41 am EST November 16,
2009
UPDATED: 12:18 pm EST November 16,
2009
ATLANTA -- A Kuwaiti logistics company was charged with multiple conspiracy counts to defraud the U.S. in connection with multibillion-dollar contracts to feed American troops in Iraq, Kuwait and Jordan.Federal prosecutors said Monday that Public Warehousing Co. made false statements and submitted false claims to manipulate prices and overcharge for food.The company is registered in Kuwait and has received more than $8.5 billion in food supply contracts.Acting U.S. Attorney Gentry Shelnutt calls it "a first step." He said the "investigation of entities and persons who have defrauded the United States and our military is ongoing."The case was filed in federal court in Atlanta and the company is scheduled for a first court appearance on Friday.
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