andyandy
17th August 2007, 05:18 AM
The owner of a hardware company has admitted to defrauding the Pentagon out of more than $20m (£10m), in one case charging almost $1m for shipping two washers costing a mere 19 cents.
Charlene Corley, who owned hardware equipment supply company C&D Distributors LLC with her sister, the late Darlene Wooten, now faces up to 20 years in prison.
Prosecutors said other fraudulent charges made by the sisters included $492,097 to ship an $11 threaded plug and $499,569 to ship 10 cotter pins - industrial steel pins - worth $1.99 each.
Over a period of nearly 10 years, the firm exploited an automated shipping payment system designed to speed up shipments of goods bound for US forces overseas.
The payment system had since been changed to prevent suppliers taking advantage of the process, Mr McDonald said.
"Its intent was a good one, and it was to get items directly to the troops wherever they might be as quickly as possible without running into the red tape of manually approving costs," he said.http://www.guardian.co.uk/usa/story/0,,2150890,00.html
Charlene Corley, who owned hardware equipment supply company C&D Distributors LLC with her sister, the late Darlene Wooten, now faces up to 20 years in prison.
Prosecutors said other fraudulent charges made by the sisters included $492,097 to ship an $11 threaded plug and $499,569 to ship 10 cotter pins - industrial steel pins - worth $1.99 each.
Over a period of nearly 10 years, the firm exploited an automated shipping payment system designed to speed up shipments of goods bound for US forces overseas.
The payment system had since been changed to prevent suppliers taking advantage of the process, Mr McDonald said.
"Its intent was a good one, and it was to get items directly to the troops wherever they might be as quickly as possible without running into the red tape of manually approving costs," he said.http://www.guardian.co.uk/usa/story/0,,2150890,00.html