USA, Liberty! Defend our Constitution and capitalism free-market system as created to the benefits of all people and protected under Sherman Antitrust Act - from all parasites, predators, socialism, communism, social, predatory mergers-acquisitions, subsidies, bail-outs, monopolies, price control, inflation, poverty.
The crime by public servants against us is everywhere in the form of taxes, inflation-price control, government regulation, government contracts, stimulus-TARP, subsidies, bail outs, grants, loans..
Public servants exterminated American jobs and domestic production under illegal communist concept - global free trade. Job offshoring, dumping foreign made products below domestic production cost, exterminating domestic production, jobs and companies is illegal under Sherman Antitrust Act.
George Soros- NWO - Zionist communist is attempting to convert America to communism with Obama’s help as a puppet president.
George Soros - NWO - communist-Zionist is looking for totalitarian global power and has the financial interest in the OSI System Inc. that sold body scanners to the government at the cost of our freedom and prosperity.
Corrupted government servants are serving individuals like George Soros, corporate interest in defense industry, health care industry, illegal offshoring companies, foreign governments, illegal immigrants.
Naked Body Scanner paid by taxpayers - the stimulus.
George Soros holds financial interest in the company and had an insider information about government contracts, making illegal money.
Perhaps one of the most controversial topics today is the use of “naked” body scanners at airports by the Transportation Security Administration (TSA), a branch of the U.S. Department of Homeland Security (DHS). As this investigation found, it is indeed a matter deserving of such controversy and further investigative focus.
Using the attempted Christmas Day 2009 bombing of Northwest Airlines Flight 253 by 23-year-old “underwear bomber” Umar Farouk Abdulmutallab as “Exhibit A” for needing the ultra-intrusive “naked” body scanners, the TSA, under the direction of the U.S. Department of Homeland Security, stepped up their purchases and deployment of the scanners to U.S. airports.
On Christmas day 2009, a total of 40 full body scanners were present at only 19 airports in the U.S., but that would soon change. Immediately following the significantly odd incident aboard flight 253 where Abdulmutallab, a Nigerian national traveling from Amsterdam to Detroit reportedly attempted to light explosives hidden in his crotch, former DHS secretary Michael Chertoff and co-author of the U.S. Patriot Act took to the airwaves to lobby for the placement of the nuclear scanners at all airports. Chertoff, the head of the Chertoff Group, a private security consulting agency, served as former DHS secretary from 2005 to 2009.
While working in that capacity in 2008, Secretary Chertoff authored a 38-page terror assessment warning of terrorists, posing as refugees for example, that would exploit our security deficiencies, including air travel. In hindsight, his warning seemed almost like a prediction that Christmas day.
In the wake of his flurry of media appearances suggesting that full body scanners would likely have caught Abdulmutallab before he boarded flight 252, an article critical of Chertoff appeared in the January 1, 2010 edition of The Washington Post.
The former DHS secretary was criticized for “using his former government credentials to advocate for a product that benefits his clients.” It was disclosed that Chertoff’s security consulting agency included a client that manufactures the controversial scanners.
That client is Rapiscan Systems, the leading provider of the scanners to the TSA and numerous other airports across the world.
The units often referred to as “naked” or “nuclear” body scanners are more officially known as the Secure 1000 Single Pose scanners, made by Rapiscan. They also produce scanning units for air cargo inspection.
Rapiscan is a wholly owned subsidiary of OSI Systems, Inc., a worldwide company based in California that develops and markets security and inspection systems. It is one of a handful of such companies trying to corner the market on security hardware for the air transportation industry - a market estimated to be worth $300 billion in the United States alone.
As indicted by the per-share price of the company’s stock, various divisions within OSI Systems, Inc., with the exception of Rapiscan were posting financial losses during the fiscal years 2007 through 2009. Month end stock prices of OSI Systems, Inc. (OSIS) fell from $27.35 per share in June 2007 to $20.85 in June 2009.
OSI Systems, Inc. received a financial boost in September 2009 when it entered into a $173 million Indefinite Delivery, Indefinite Quantity (IDIQ) contract with the U.S. Transportation Security Administration. On October 1, 2009, the TSA purchased “multiple scanners” from Rapiscan at a cost of approximately $25 million under the terms of that contract.
As shown by the following graph, demand for the scanners and the value of OSI stock did not take off until the attempted Christmas Day bombing. The demand sharply increased not only in the U.S., but worldwide.
Rapisan suddenly grew as other countries contracted with Rapiscan for their scanning units. Most notably, perhaps, was a February 2010 deal between Rapiscan and the government of Nigeria, the very country of origin of Umar Farouk Abdulmutallab. Immediately before that deal, OSI Systems, Inc. announced a deal with Great Britain for scanners at Heathrow and Manchester International Airports.
Thanks to the worldwide scanner market demand, the revenues of OSI Systems, Inc. grew nearly 25% during the first quarter of 2010 over the same period of 2009, to over $65 million as a direct result of major government investments.
A second purchase for “multiple units” was announced on 29 April 2010 for $16 million. It is interesting to note that OSI Systems, Inc., announced at this time that the “naked” body scanners were bought with funds from the American Recovery and Reinvestment Act of 2009 (stimulus) money, from a bill signed into law by President Barack Obama on 17 February 2009.
On 22 September 2010, Rapiscan announced that it received orders from the TSA totaling $35 million for the 620DV Advanced Technology (AT) checkpoint X-ray baggage inspection system. The delivery orders were the first of that type placed by TSA under the terms of a five year Indefinite Delivery, Indefinite Quantity (IDIQ) contract. The systems will be deployed by TSA at airport checkpoints in the United States, where they are to be used to screen passengers’ carry-on baggage.
A look at OSI Systems, Inc., including its Rapiscan subsidiary identifies Deepak Chopra as the president and CEO. Chopra, individually and through his PAC, has been identified as a significant donor to the Democratic party, including contributions to the campaigns of Obama and Hillary Rodham Clinton.
It should come as no surprise, then, to learn that he accompanied President Obama and his royal entourage by invitation on his recent trip to India to promote further trade between the two countries. The trip was paid for by U.S. tax dollars.
Investigation into the financials of Rapiscan and its parent company becomes even more interesting when it is learned that George Soros also holds a financial stock interest in the company. As of last June, Soros held about 12,000 shares of OSI stock.
But if these scanners have been around for some time, what then, caused the most recent uproar regarding their use?
Based on my investigative findings, I submit that there are two primary reasons for the growing public outcry over the “naked body scanners.” Both have been expertly addressed by investigative blogger and talk show host Alex Jones via the Drudge Report, who has been warning the public about the scanners since they were first introduced.
First, there has been heightened awareness of the possible radiological dangers posed to the TSA agents operating the scanners as well as to the passengers being screened. Although there have been numerous official assurances to the public that the scanners pose no health risks, several scientists and radiologists have concluded otherwise.
Secondly, there are the images themselves. It is important for the public to understand that the images of scanned passengers shown to the public have passed through filters to “tone down” their graphic nature.
In reality, the images that are visible to TSA officials are much more revealing. Having seen actual images of a full body scan on a TSA computer for the purpose of completing my investigation, I can tell you that the images are extremely graphic and leave very little to the imagination. To be sure, they do not resemble the images that are being shown to the public.
Additionally and despite assurances to the contrary, there have been many documented abuses and misuses of the scanned images taken by TSA officials. Despite denials, images are stored in databases, ostensibly for “training” purposes. However, the number of images currently being maintained, along with the location of their storage (in some cases, outside of the TSA), indicate a purpose beyond any legitimate training program.
What has yet to be publicly disclosed is, in my professional opinion, most alarming.
Based on the instructions from Department of Homeland Security Secretary Janet Napolitano, a directive was reportedly issued by the TSA on 29 October, 2010. That directive instructs all TSA screening agents to perform “enhanced” pat down searches that involve the actual groping of women’s breasts and the genitalia of all passengers, including children.
Upon learning of that directive, I conducted an interview with a trusted source working within the U.S. Department of Homeland Security on 12 November, 2010. According to the information obtained during that interview, the enhanced pat down directive was not in response to any intelligence or actionable threat. Instead, it was issued as a result of the number of airline passengers “opting out” of the body scans.
The reasoning was that passengers would be more likely to select the more passive and less invasive of the two options. In other words, the directive was meant to “convince” people to choose the (ostensibly) less personal and humiliating scrutiny of a full body scanner instead of being groped by a TSA agent.
One might wonder why one option over the other would matter so much to the Department of Homeland Security. The answer might possibly be found in DHS documents described as “conceptual discussions” about trial deployments of the full body scanners to non-aviation public locations, such as sports stadiums, schools and malls. It appears that it is the intent of DHS to eventually install naked body scanners in these venues. But first, the public must be “conditioned” to accept their use at airports.
Meanwhile, Big Brother will stop groping you, your wife and kiddies as soon as their full body scanners are planted in your local schools, stadiums and malls.
George Soros - more crimes - Monsanto, AT&T
George Soros has an inside information and corrupted government connection to many government agencies, FDA, EPA, Justice Departments.. and is making money on government contracts, stimulus, subsidies.
See the stock ownership including Monsanto that tries to destroy by corrupted government regulation our small companies and food supplies. Also these companies are receiving government contracts, subsidies, stimulus and the offshoring goes to foreign companies and workers at the cost of American people, our freedom and prosperity.
By Brett Philbin
George Soros Fund
The value of billionaire investor George Soros’ hedge fund increased by 31.6% to $6.7 billion at the end of the third quarter compared with the previous quarter, as he boosted his stake in blue-chip stocks AT&T Inc. and Monsanto, according to a regulatory filing late Monday.
The fund had reported a value of $5.1 billion at the end of the second quarter. Soros Fund Management bought 1.3 million shares of AT&T, raising the value of the position to $51.4 million as of Sept. 30, according to a filing with the U.S. Securities and Exchange Commission.
Soros also purchased 897,813 shares of Monsanto–his second-largest holding on a dollar basis–during the quarter. The position is now valued at $312.6 million.
The fund also reported a new position in drug maker Dendreon Corp., disclosing that it purchased 1.8 million shares valued at $74.8 million at the end of the third quarter.
In a reversal from its second-quarter disclosure, the fund bought 2.1 million shares of pharmaceutical giant Pfizer Inc. Soros had previously sold 5 million shares of Pfizer in the second quarter. His position is now valued at $41.4 million.
Additionally, Soros reported no stake in Best Buy Co. The fund sold 936,895 shares during the third quarter. Other new holdings include Mentor Graphics Corp. Soros disclosed the purchase of 76.5 million convertible notes of the company, valued at $79.5 million.
Many investors that manage more than $100 million are required to file 13-Fs with their stock holdings within 45 days of the end of a given quarter, giving the public its freshest possible glimpse into the portfolios of well-known money managers. Most hedge-fund managers and others wait until the last possible moment to make these filings. The third quarter deadline was Monday.
Puppet master new about it. It is insider information and it is illegal.
George Soros Bulks Up on Solar Stocks -You should know why we spend Taxpayer's money on solar subsidies.
NEW YORK (TheStreet) -- The quarterly buying and sell that George Soros and Soros Fund Management execute in the gold market garners all the headlines, but the hedge fund manager was busy trading in two popular solar stocks in the third quarter also.
The quarterly portfolio holding review released by Soros Fund Management on Monday after the market close showed Soros making bets on solar inverter company Power-One(PWER) and U.S. semiconductor and solar company MEMC Electronic Materials(WFR).
When it comes to the hedge fund manager portfolio headlines, the energy sector is always a staple of the quarterly buys and sells. Yet it's usually the conventional energy plays, from the integrated major oil companies to foreign state-run oil ADRs and undervalued drillers, that get the attention of the elite hedge-fund managers.
Anadarko Petroleum(APC), for example, was a bone of contention between hedge fund elites in the third quarter, with John Paulson's Paulson & Company making Anadarko its largest new portfolio addition -- it's a top five holding for Paulson's portfolio in the third quarter -- while Carl Icahn's Icahn Capital Management unloaded Anadarko shares.
Soros, too, is much more famous for his bet on Petrobras(PZE_) -- and selling out of that bet this year -- than he is for the addition of Power-One and MEMC Electronic Materials as new portfolios holding. In the case of MEMC Electronic Materials, it was a new Soros holding for the second time this year, meaning he had previously timed an entry and exit from his entire holding in the solar company's shares.
It's somewhat unwise to read too much into the quarterly buying and selling done by the hedge fund elite, as a manager like Soros enters and exits positions by the dozens, even by the hundreds, within a quarter. Short-term moves into and out of stocks may not be accurately reflected in a backward-looking quarterly review of holdings. With this caveat, the Soros buy of Power-One and MEMC shares was notable, albeit for different reason.
See this also - Public servants financial interest in US Corporations
Corrupted public servants are former employee of Monsanto occupying our agencies: FDA, EPA, Defense....and Department of Justice.
82 % of public servants in Congress -50% Democrats and 50% Republicans have stocks ownership in these corporations and this is conflict of interest.
Stock ownership US Congress influenced voting on bailout.
March 29, 2010 (PhysOrg.com) -- Personal investments in the stock of financial institutions by members of the House of Representatives and the Senate of the Unites States was positively associated with these institutions receiving bailout after the subprime mortgage crisis of 2007
Stock ownership in the financial sector by politicians increased the probability that banks received bailout money, how much support these institutions received and how quickly.
Professor Laurence van Lent of Tilburg University in the Netherlands and Ahmed Tahoun of Manchester Business School (UK) drew these conclusions on the basis of an analysis of 555 publicly listed financial sector firms, 295 of which received government support under the Troubled Asset Relief Program (TARP).
Lobbying is indubitably an important means of exerting influence in politics. In the United States, campaign donations also matter. What has gone virtually unnoticed thus far though is that politicians also are investors. Part of their wealth rests with firms whose wellbeing falls under their legislative and regulatory influence.
Professor of Business Laurence van Lent and his colleague Ahmed Tahoun have now systematically shown for the first time that equity ownership of politicians plays a significant role in their legislative and oversight activities. In particular, stock ownership was associated with members of the House of Representatives voting in favor of the H.R. 3997 bill on September 29th and H.R. 1424 on October 3rd, 2008 to bailout the financial sector. In the initial vote, the predicted probability of voting for the bailout proposals is 41 percent for non-investors and 58 percent for equity owners. In the final vote, the predicted probabilities are 55 and 69 percent respectively.
Congressional equity ownership in a given firm was also shown to affect the probability of receiving a bailout, the bailout amount and the timing of government support to that firm. Due to their oversight of the Treasury’s implementation of TARP policy, congressional committees with jurisdiction over the finance sector can potentially affect regulatory outcomes.
The researchers show that the equity ownership of members of these congressional committees is indeed associated with bailout decisions. It turns out that this effect can be attributed largely to the powerful members in each committee, i.e., the chairs and ranking members.
Add to bail-out other crimes: government contracts, subsidies, loans, stimulus, grants, corrupted tax deals ... - This is crime - stimulus.
As stock ownership rises in Congress, experts warn of potential ethics concerns
The uncertainty created about lawmakers' motivation undermines confidence in Congress and the political process, the specialists say. More than half of all lawmakers own stock. In the House, the number of lawmakers trading stock jumped from 91 in 2001 to 259 today, according to academic researchers and the nonprofit Center for Responsive Politics. That includes 68 lawmakers who, as of the beginning of 2008, individually owned more than $100,000 in stock, not including mutual funds.
Some of the most popular stocks in Congress are also widely held across the country, including General Electric, Microsoft, Bank of America, Procter & Gamble and other blue-chip names. Some of these companies are also government contractors or bailout recipients. Top industries include oil and gas, electronics and health-care products. In the medical-device field alone, 108 lawmakers collectively own $6 million to $14 million worth of stock.
Click on the above link to read more!
Insider trading- employees of government agency - FDA
A federal inquiry into insider trading at the Food and Drug Administration is being widened to look at other government employees, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
Government takeover of our food supplies. Corruption. Monsanto and George Soros financial interest.
Crime and corruption in Health Care - FBI list
Health care fraud costs the country an estimated $60 billion a year. And it’s a rising threat, with national health care spending topping $2 trillion and expenses continuing to outpace inflation. Recent cases also show that medical professionals are more willing to risk patient harm in their schemes.
See more crime reported by FBI in health care.
These predators are getting government contracts at excessive prices and our cost, mainly in the health care industry that made us bankrupt, Medicare is empty also.
Illegal Immigration - Crime, corruption, infiltration with communists in Congress.
California-annual cost $10.5 billion. Illegals are making communist revolution in California.
Public servants exterminated American jobs, domestic production, prosperity and freedom... to the benefit of communist China... la.. la.. la.....
See videos by Jewish Brother Nathanael - global NWO- Communist-Zionist-Jewish-mafia.
California - Public servants crime
Corruption arrests over California city pay scandal
The others arrested were former and current council members.
The investigation has looked into allegations of voter fraud, corruption, and misuse of public funds.
Related storiesScandal over California city officials' pay
Bell's mayor, Oscar Hernandez, who was also arrested, has already apologised for the scandal and said he will step down after completing the rest of his term without pay.
The officials' salaries were revealed by the Los Angeles Times newspaper.
Mr Rizzo's deputy, Angela Spaccia, who received $376,288 a year, was arrested. Vice Mayor Teresa Jacobo, council members George Mirabal and Luis Artiga, and former council members George Cole and Victor Bello were the others to be held.They used the taxes of the hardworking citizens of Bell as their own piggy bank, which they looted”
The salaries paid to city officials were hugely out of step with the levels of pay made to most public officials in California and around the US.
The district attorney alleges that those arrested misappropriated more than $5.5m, and made several illegal personal loans.
Mr Rizzo is accused of obtaining $4.3m through a series of unapproved employment contracts, while council members earned $1.25m for what Mr Cooley said were "phantom meetings" of committees and other bodies.
Mr Rizzo was also accused of doling out $1.9m in loans to Ms Spaccia, Mr Hernandez, Mr Artiga and several others.
The investigation is continuing and more charges could be pressed.
"They used the taxes of the hardworking citizens of Bell as their own piggy bank, which they looted," Mr Cooley said.
Bell, a small city of about 38,000 people, has an unemployment level of 16% and many in the mainly Hispanic, blue-collar community struggle to make ends meet. About 17% of people live in poverty.
State Controller John Chiang has released a new round of compensation figures for public sector employees, including a Bay Area hospital executive who made about $875,000 in 2009, and a San Gabriel Valley water official who was paid close to $600,000."
Thousands of newly retired school administrators will earn more during retirement than most Californians will make during their working careers.
The number of educators receiving $100,000-plus annual pensions jumped 650 percent from 2005 to 2011, going from 700 to 5,400, according to a Bee review of data from the California State Teachers' Retirement System.
Though they make up just 2 percent of CalSTRS pensions, six-figure payouts are a focus of pension reform discussions under way at the Capitol. Six-figure retirees eat 7 percent of CalSTRS benefits and can ultimately get millions more than they put into the system.
Booming administrator salaries are largely behind the trend. Public school superintendents, on average, earned $168,000 in base pay last year, roughly 56 percent more than they did 10 years ago, according to data from the California Department of Education.
Vernon paid millions to firms connected to city officials relatives
The city of Vernon has paid millions of dollars in the past decade to private firms connected to relatives of top city officials, it was reported today.
Already under fire for over sized salaries earned by some leaders, Vernon has employed at least a dozen family members of city officials, either directly at City Hall or through companies that have done business with the city
The Times reported last winter that more than a dozen friends and family members of top Vernon officials lived in city-owned residences at below-market rates, including four nephews of new City Administrator Mark Whitworth. The rents range from $136 to $472 a month.
California city asked to return property taxes to legal limit
The high salaries paid to Bell city leaders provoked anger as California deals with a nearly $20 billion budget deficit.
The Bell City Council is expected to be asked Monday to approve a property tax rate that meets state law. The California city, which has drawn anger for the high salaries paid to its leaders, plans to repay $3 million in property tax overcharges.
California state government salary encompasses the compensation, salaries, and benefits that California's public employees receive from state and local government.
California state legislators make $95,291 per year. Legislators also receive a per diem of $173 per day plus mileage tied to federal rate.
Public servants got wealthy at our cost.
Public servant, disgraced Rep. Wu could collect nearly $900K in pension benefits.
Looting by public servants is everywhere in the name of social justice or for the poor, or children education. Socialism=terrorism and it is illegal in USA. Reproduce at own cost, terminate illegal public schools-terrorist-Communist
Scandal-plagued Rep. David Wu, D-Ore., will be leaving the House eligible to draw a lucrative congressional pension totaling almost $900,000.
First elected to Congress in 1998, Wu's benefits could add up over the rest of his life to an estimated $851,000 based solely on his congressional service—or $891,000 if another year of possible qualifying service as a clerk with the federal judiciary is included.
Already, the 56-year-old lawmaker qualifies for an immediate annual pension of about $23,871 if he makes good on announced plans to resign sometime shortly, according to calculations provided to National Journal by the Alexandria, Va.-based National Taxpayers Union. (He had not done so as of Wednesday afternoon). That yearly amount would go as high as $24,998, if Wu's year of service as a judge's clerk is added.
US House hopeful said stimulus funds went to China
Said U.S. Rep. Jim Marshall, D-Macon, sent nearly $2 billion overseas to build wind turbines and create jobs, mostly in China
House probing $528M loan to failed solar company
California questions $31 million in spending by Montebello
State auditors found Montebello improperly handled $31 million, including instances in which officials used funds meant to improve blighted neighborhoods on fancy dinners in Las Vegas, golf, embroidered polo shirts and other "frivolous" items.
Public servants are financial terrorists.
Our public servants are terrorists, financing the terrorism at the cost of taxpayers. They are making illegal laws, illegal vote against our constitutional, unalienable rights to Life, Liberty and Prosperity. They are primitive, barbaric criminals that must be taken down from our government. See how they make the money on terrorism that they created to keep totalitarian Bolshevik control. The crime against us is everywhere.
See public servantsm, the criminals, terrorists in Congress making illegal new terrorism law.
See more - California Public Servants - Unionized Communist
Defense Contractor Fraud
|Defense contractor pleads guilty to bribing federal official .|
Denome is the owner of JD Machine Tech, Inc. (“JD Machine”), a San Diego-based defense contractor. His company contracted with the Fleet Readiness Center Southwest to provide a variety of goods and services to the E2/C2 aircraft program.
In his guilty plea, Denome admitted to giving a US Department of the Navy official a variety of bribes, from June 2004 to September 2005. The Navy official was unnamed in the indictment and no further information was revealed about his role and what actions are being taken against him.
The official received the gifts with the intent that he would steer government business in the direction of Denome’s company. In fact, Denome’s company did receive over 100 contracts worth $329,000. His company provided tools, supplies and parts, including custom machined carts and shelving, according to the indictment. The defense contractor fraud bribes took the form not of just money but goods such as a $2,500 bicycle, a $450 model airplane engine. He also wrote four checks totaling $18,000 as payments on the official’s credit card bill.
As is often the case in these situations, Denome tried to cover up or mask the nature of these bribes. As a result, he mischaracterized personal expenses such as vacations for hunting and other hobbies as business deductions.
These inappropriate deductions resulted in Denome’s understating his taxes due on his US income tax returns for the years 2005, 2006 and 2008.
In total, he understated his personal tax returns in excess of $300,000. As a result, he owes additional taxes of $80,000.
Denome pleaded not guilty and was released on $40,000 bond. He is scheduled to appear in US District Court on August 8, 2011 for sentencing.
Have information on Defense Contractor Fraud?
Mitt Romney - Republican Security Advisers Tied to $40 Bln in Contracts
National security advisers to the Republican presidential candidates have ties to defense, homeland security and energy companies that have received at least $40 billion in federal contracts since 2008.
Five of former Massachusetts Governor Mitt Romney’s 41 national security and foreign policy advisers have links to companies that last year alone received at least $7.9 billion in federal contracts, according to data compiled by Bloomberg Government analyst Christopher Flavelle. Of that, $7.3 billion came from the Department of Defense.
Romney and former U.S. House Speaker Newt Gingrich ofGeorgia, who are leading in the polls, have advisers who sit on the board of directors of BAE Systems Inc., which has received at least $37 billion in U.S. government contracts since 2008, the most of any of the companies with ties to Republican national security advisers.
William Schneider, an adviser to Gingrich, and Michael Chertoff, who counsels Romney, serve on the board of the U.S. subsidiary of BAE Systems Plc, Europe’s largest defense contractor. The American company makes the Army’s Bradley Fighting Vehicle and provides information technology systems to American intelligence agencies and repair services to the U.S. Navy.
Department of Defense -Contractor Fraud
UPDATED, 5: 02 p.m. More than 100 military contractors providing everything from aircraft to wrist cuffs for gloves committed civil or criminal fraud between 2007 and 2009, according to a report from the Department of Defense, yet many continued to receive funds from the department – including some barred from contracting.
The Pentagon report found that 30 contractors had been convicted of fraud between 2007 and 2009, and 91 had been the subject of civil judgments over fraud claims; some companies appeared on both lists. In addition, 120 companies had reached settlements over claims. Forty-three companies were suspended, and 164 were debarred from contracting.
The information is not typically compiled in one place, but Senator Bernard Sanders, an Independent from Vermont, requested the information through a defense spending bill last year. Covering three of the 10 years worth of data requested, the report lists many cases that are already public, including some that have received widespread news coverage, and includes no details of the cases. Still, the report provides a window into contractor fraud, which Sanders said should be paramount as Congress wrestles cutting the federal deficit.
“The people of this country want to make sure that when they spend a dollar on defense, it’s going for defense, it’s not going to companies committing fraud,” said Sanders.
COMMON TYPES OF FRAUD: DEFENSE CONTRACTOR FRAUD
The United States spends approximately $500 billion per year in national defense. A large percentage of that massive annual spending goes to the procurement of new weapons systems, facilities, equipment, supplies, logistical and technical services to be used in defense of the United States. In addition, the government spends billions of dollars to upgrade and repair current weapons systems, equipment and facilities. The overwhelming majority of this defense procurement is done through contracts with private businesses in the United States and around the world.
Defense contractor fraud remains one of the most active areas of false claims litigation under the Federal False Claims Act. Billions of dollars have already been recovered from defense contractors, largely as a result of qui tam whistleblowers acting under the Federal False Claims Act. Below is a description of some of the more common ways in which defense contractors have tried to defraud the federal government:
- Cross-Charging: Cross-charging has been one of the most common types of defense procurement fraud. Cross-charging occurs when a defense contractor improperly shifts costs and expenses from one defense contract to another in order to boost its profits. The United States typically awards one of two types of contracts in defense procurement: (1) the “fixed-price” contract; and (2) the “cost-plus contract.” In a “fixed-price” contract, the government pays the contractor a set price for the delivery of a weapons system or other product, no matter how much it costs the contractor to produce. In a “cost-plus” contract, the government pays the contractor a set price plus a percentage of the contractor’s costs for producing the weapons system or other product. Defense contractors that have both of these types of contracts have a strong financial incentive to shift costs from the “fixed-price” contract to the “cost-plus” contract, and thereby maximize the contractor’s profits. This illegal cross-charging is frequently accomplished by altering records to shift employee hours and equipment costs from the “fixed-price” contract to the “cost-plus” contract.
- Improper Product Substitution: Defense contracts frequently specify that the contractor use a particular grade, type or quality of product or parts. There are often additional requirements that the parts be new (as opposed to used or refurbished), and that those parts be made in the United States. Defense contractors can often save costs, and maximize profits if they substitute cheaper or substandard parts. If a defense contractor does this without the permission of the government’s contracting officer, it can violate the Federal False Claims Act.
- Improper Cost Allocation: In many forms of business, including defense contracting, the key to getting a lucrative private or government contract is often the ability to deliver the product or service at a price less than the competition. Defense contractors that provide products and services to the United States military also sell those products, in some form or another, to government and private businesses around the world. One way that some defense contractors have attempted to secure lucrative contracts from private businesses or governments outside the United States is to improperly allocate or shift costs from those contracts onto the “cost-plus” contracts they have with the United States government. As a result of this scheme, the United States ends up paying for the costs that should be paid by these private businesses or foreign governments.
- Worthless or Substandard Products or Services: Due to the volume and complexity of the weapons systems, equipment and products the government purchases for national defense, it is near impossible for the United States Military to perform a quality check on each item it purchases. In many cases, the government relies upon the defense contractor to provide weapons systems, equipment and products that perform as promised in the contract. Although there can be cases of honest mistakes, there also can be instances where the defense contract knew, or was reckless in not knowing, and the products they were delivering would not perform as promised. Such worthless or substandard products can have devastating impact on the men and women of the military that use these items. Moreover, delivering worthless or substandard products or services can, in certain circumstances, violate the Federal False Claims Act.
- Inflation or Costs and Charges: In “cost-plus” contracts, the government pays the defense contractor a set price plus a percentage of the contractor’s costs for producing the weapons system or other product. One common form of fraud has been for the contractor to improperly inflate their costs and charges to increase the revenue the company earns from the government. This form of fraud is often accomplished through inflated time records, inflated equipment and materials costs and fake purchase orders.
- Violations of the Truth-In-Negotiations Act (TINA): Many of the weapons systems and equipment used by the United States Military are highly specialized and complex. Often times, there is only one company in the world producing that particular weapons system or equipment. The government, therefore, has no choice but to purchase this weapons system or equipment from this single-source supplier. The problem with purchasing from a single-source supplier is that the government does not know if it is paying a fair price, because other competitors are not bidding for the work. The Truth In Negotiations Act (TINA) attempts to prevent this problem by requiring defense contractors to honestly disclose all relevant information about its costs to the government in these types of single-source, no-bid contracts. Despite the requirement of TINA, single-source defense contractor can sometimes be tempted to inflate their costs and expenses because they know that another company will not under bid them for the work, and it is difficult for the government to discover the fraud. Inflating costs and expenses however can be a violation of the Federal False Claims Act.
See the list of defense contractor fraud by FBI charges.
San Diego Defense Contractor Pleads Guilty to Bribing Government Official to Obtain Lucrative E-2/C-2 Early Warning Aircraft Contracts
According to court records, the bribes included: (1) a $2,472.86 bicycle; (2) a $449.95 model airplane engine; and (3) over $18,000 in payments on D.V.’s personal credit card. In exchange for these bribes, D.V. placed over 100 orders on behalf of the E2/C2 program (valued at over $300,000) with JD Machine for various goods and services.
See the list of criminals and the crime-FBI records
See bail-outs. More than $23 Trillion extorted from taxpayers, missing Trillions of US $.