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Bloomberg News: Pentagon Paid $998,798 to Ship Two 19-Cent Washers


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Pentagon Paid $998,798 to Ship Two 19-Cent Washers

Tony Capaccio Thu Aug 16, 3:16 PM ET

Aug. 16 (Bloomberg) -- A small South Carolina parts supplier collected about $20.5 million over six years from the Pentagon for fraudulent shipping costs, including $998,798 for sending two 19-cent washers to an Army base in Texas, U.S. officials said.

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The company also billed and was paid $455,009 to ship three machine screws costing $1.31 each to Marines in Habbaniyah, Iraq, and $293,451 to ship an 89-cent split washer to Patrick Air Force Base in Cape Canaveral, Florida, Pentagon records show.

The owners of C&D Distributors in Lexington, South Carolina -- twin sisters -- exploited a flaw in an automated Defense Department purchasing system: bills for shipping to combat areas or U.S. bases that were labeled ``priority'' were usually paid automatically, said Cynthia Stroot, a Pentagon investigator.

C&D and two of its officials were barred in December from receiving federal contracts. Today, a federal judge in Columbia, South Carolina, accepted the guilty plea of the company and one sister, Charlene Corley, to one count of conspiracy to commit wire fraud and one count of conspiracy to launder money, Assistant U.S. Attorney Kevin McDonald said.

Source: Blooomberg News

Full Article Click Here:

http://news.yahoo.com/s/bloomberg/20070816/pl_bloomberg/a_piz20xqxeu

Kind of reminds of Office Space and the Penny scam :laugh:

-Grant

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Hope they enjoy prison.

added

Stroot said the Pentagon hopes to recoup most of the $20.5 million by auctioning homes, beach property, jewelry and ``high- end automobiles'' that the sisters spent the money on.

``They took a lot of vacations,'' she said.

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The owners of C&D Distributors in Lexington, South Carolina -- twin sisters -- exploited a flaw in the federal government, known as "the federal government," said a Pentagon investigator.

Fixed that for the author. :laugh:

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I understand how this is classified as war profiteering, but step back for a second and think about who the real crooks are. The Federal Government shouldn't be wasting so much of our money on lil sh*t like that? A complete, and total waste of our hard earned dollars, and a pattern too many people have turned a blind eye to. I feel violated as an American citizen.

Question: Minus all the bullsh*t spending and M.I.A. billions of American tax payer dollars actually goes to the troops? How much of our world leading Military Defense budget actually go to our military or our defense?

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I understand how this is classified as war profiteering, but step back for a second and think about who the real crooks are. The Federal Government shouldn't be wasting so much of our money on lil sh*t like that? A complete, and total waste of our hard earned dollars, and a pattern too many people have turned a blind eye to. I feel violated as an American citizen.

Question: Minus all the bullsh*t spending and M.I.A. billions of American tax payer dollars actually goes to the troops? How much of our world leading Military Defense budget actually go to our military or our defense?

The problem was there was no oversight. They didn't realize they were spending so much money on that lil sh*t. In order to get through all the red tape of purchasing that occurs in any level of government, areas where the item is deemed priority is paid for immediately. I would imagine that due to massive amounts of things being purchased by the gov't, the priority ones obviously slip through the cracks with the hopes that the people buying them are honest and have some ethical sense. That being said....this goes to show you don't be greedy...eventually they will find out.

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At least they caught these crooks. I hope they throw the book at these two, including charges of war profiteering.

At least they could've shipped a couple $2000 screwdrivers or $1000 toilet seats for the nostalgia of the Raygun era.

Nice. And people get so bent out of shape if anyone so much as whispers Clinton.
eh...nothing new here. What these guys did "illegally" Haliburton and defense contractors do legally every day.
You never give up do you? You take every chance you can get to bash anything that has to do with the govt.
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You never give up do you? You take every chance you can get to bash anything that has to do with the govt.

Consider it a "target rich environment".

$20,000 for a hammer, paying contracts even though nothing is supplied, etc etc....yeah I'm way off base. Besides, I have long since gotten tired of defending the gov't and its bureaucracy, waste, and corruption. Defend it if you wish, but I'd just as soon talk about its realities until they fix the problem.

*edit*

Just watch John Stossel's "Fleecing of America".

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I understand how this is classified as war profiteering, but step back for a second and think about who the real crooks are. The Federal Government shouldn't be wasting so much of our money on lil sh*t like that? A complete, and total waste of our hard earned dollars, and a pattern too many people have turned a blind eye to. I feel violated as an American citizen.

Question: Minus all the bullsh*t spending and M.I.A. billions of American tax payer dollars actually goes to the troops? How much of our world leading Military Defense budget actually go to our military or our defense?

Didn't the US lose a trillion dollars or something? just sort of misplaced it? I know a lot of **** is lost because of porkbarreling, but still, our government is getting so dumb.

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This doesnt even compare to the:

It is August: In the Military District of Washington alone there are 4400+ divisions spending every penny they can so that when October comes around they won't get less money next year... Billions and Billions of dollars across the country are being wasted like this.

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This doesnt even compare to the:

It is August: In the Military District of Washington alone there are 4400+ divisions spending every penny they can so that when October comes around they won't get less money next year... Billions and Billions of dollars across the country are being wasted like this.

And there's a key problem with government: in the private sector you get rewarded for financial efficiency; not so in gov't.
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This doesnt even compare to the:

It is August: In the Military District of Washington alone there are 4400+ divisions spending every penny they can so that when October comes around they won't get less money next year... Billions and Billions of dollars across the country are being wasted like this.

That's a pretty fundamental misunderstanding of the system. There is some "quick, obligate this money so it doesn't get pulled back" going on, but that money is generally getting obligated to things that it was budgeted for in the first place.

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Man, the SOLUTION to this problem is so freaking easy, and NOBODY has the kahonies to do it. I just HATE and ABHORE government mentality, and I work for the govt!!!

It is simple folks, if you come in UNDER budget, you get to allocate a portion of that money (say 10%) to bonus'. Do you think the people in charge of budgets would change their ways if this happened? I sure do. You put a cap on the amount their budget can be over the preceding year, say inflation +1%, and give them everything in terms of money back in their pockets. That is the only way you will EVER improve the system!!!

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Man, the SOLUTION to this problem is so freaking easy, and NOBODY has the kahonies to do it. I just HATE and ABHORE government mentality, and I work for the govt!!!

It is simple folks, if you come in UNDER budget, you get to allocate a portion of that money (say 10%) to bonus'. Do you think the people in charge of budgets would change their ways if this happened? I sure do. You put a cap on the amount their budget can be over the preceding year, say inflation +1%, and give them everything in terms of money back in their pockets. That is the only way you will EVER improve the system!!!

:thumbsup:

Take away the negative stigma surrounding under spending and you solve most of the problem.

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Man, the SOLUTION to this problem is so freaking easy, and NOBODY has the kahonies to do it. I just HATE and ABHORE government mentality, and I work for the govt!!!

It is simple folks, if you come in UNDER budget, you get to allocate a portion of that money (say 10%) to bonus'. Do you think the people in charge of budgets would change their ways if this happened? I sure do. You put a cap on the amount their budget can be over the preceding year, say inflation +1%, and give them everything in terms of money back in their pockets. That is the only way you will EVER improve the system!!!

I agree, with one small caveat: this would only increase the prevelence of going with the lowest bidder, regardless of quality to reward yourself.

But still a step in the right direction.

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Why do you think defense contractors spend so much money on lobbyists.....because they know they can fleece the government to repay the millions they spend to get the contracts....as for those that are saying bashing haliburton isn't justified...please...go look at the record...and get your facts straight they have been caught several times dipping their hand into the cookie jar so to speak and they have barely been spanked for it....

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Why do you think defense contractors spend so much money on lobbyists.....because they know they can fleece the government to repay the millions they spend to get the contracts....as for those that are saying bashing haliburton isn't justified...please...go look at the record...and get your facts straight they have been caught several times dipping their hand into the cookie jar so to speak and they have barely been spanked for it....

Just the fact they were awarded billions in defense contracts for this war without anyone else allowed to place bids speaks volumes.

I'll say it again. Hang one of these ladies as a traitor, and maybe the next contractor will think twice before stealing from us again.

~Bang

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