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American Faces Charge of Graft for Work in Iraq

In what is expected to be the first of a series of criminal charges against officials and contractors overseeing the rebuilding of Iraq, an American has been charged with paying hundreds of thousands of dollars in bribes and kickbacks to American occupation authorities and their spouses to obtain construction contracts, according to a complaint unsealed late yesterday.

The man, Philip H. Bloom, who controlled three companies that did work in Iraq in the multibillion-dollar reconstruction effort, was charged with conspiracy, wire fraud, conspiracy to launder money and interstate transportation of stolen property, all in connection with obtaining up to $3.5 million in reportedly fraudulent contracts.

The complaint, unsealed in the Federal District Court of the District of Columbia, also cites two unnamed co-conspirators who worked in the Coalition Provisional Authority, the American administration that governed Iraq when the contracts were awarded in early 2004. These were the officials who, with their spouses, allegedly received the payments.

[...]

The complaint says that in order to obtain lucrative reconstruction contracts, Mr. Bloom paid at least $200,000 a month to an unspecified number of coalition authority officials, including the two co-conspirators and their spouses. Neither co-conspirator is named in the complaint, although it indicates that one is cooperating with the prosecution.

The other co-conspirator, the complaint says, held the position of comptroller and financing officer for "C.P.A. South Central Region in Iraq," which included Hillah. This person controlled $82 million "to be used for payment of contract services rendered in Al Hillah, Iraq, including contracts awarded to Bloom," the complaint asserts.

A United States government official said this person was named Robert J. Stein.

The complaint says the contracts Mr. Bloom obtained "were purported to be for the rebuilding and stabilization of Iraq" in Hillah and Karbala, a holy city in the south. The work included "the renovation of the Karbala Public Library; demolition work related to, and construction of, the Al Hillah Police Academy; the upgrading of security of the Al Hillah Police Academy, and the construction of the Regional Tribal Democracy Center."

With the assistance of the alleged co-conspirators and others, the document says, Mr. Bloom submitted multiple bids on the same contracts, using the names of different companies that were either controlled by Mr. Bloom or did not exist. Once there were sufficient bids to satisfy United States government regulations, the co-conspirators, including Mr. Stein, would ensure that the contract went to one of the companies, the complaint says.

"The value of these contracts ranged up to $498,900," the complaint says. "Co-conspirator 1's approval authority for awarding contracts was limited to contracts less than $500,000."

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Lil Jon's guide to doing business in Iraq.









































"Nope."


























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That was Lil Jon's guide to doing business in Iraq.