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That bird won’t fly and other news

Hold that Revolving Door! Four-Star General Coming Through
Dana Liebelson – (POGO) – January 28, 2012 – The revolving door that carried former Department of Defense honcho William Lynn III to a well-paying job with an Italian defense contractor keeps on spinning – now Gen. James Cartwright, who retired as the nation’s second-highest ranking military officer in August, is following Lynn into the private sector.

Cartwright is joining the Board of Directors at Raytheon, a major U.S. defense contractor. Earlier in the week, DRS Technologies named Lynn as its chief executive officer. (Coincidently, before Lynn was tapped as deputy defense secretary, he was a top lobbyist for Raytheon.)

“General Cartwright’s deep understanding of defense and broad experience in military operations and matters of national security will be of great value to our Board,” Raytheon Chairman and CEO William H. Swanson said in a press release.

Well, Cartwright certainly has a deep understanding of defense: He’s a four-star general with 40 years of service in the Marine Corps, including four years as the Vice Chairman of the Joint Chiefs of Staff. But then there’s that sticky “great value to the Board” comment. And that’s where the problem with the well-oiled revolving door that leads from the Pentagon to the defense industry rears its ugly head. (Click HERE for article)

Former United Nations Employee Sentenced to 18 Months in Prison
(DoJ) – WASHINGTON – January 27, 2012 – Jeffery K. Armstrong, 52, of South Riding, Va., was sentenced today to 18 months in prison for obtaining more than $100,000 in salary payments by fraudulently holding concurrent jobs at the United Nations (U.N.) and the National Labor Relations Board (NLRB). He was ordered to serve a three-year term of supervised release following his sentence and to pay $128,153 in restitution.

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The Pentagon & Department of Justice’s “cash to convicts” policy & other news

…At an LBG annual meeting in September 2001, Salvatore Pepe, 58, of Tuckahoe, N.Y.—who was then the controller and eventually became the chief financial officer—presented a USAID overhead rate that was significantly below Wolff’s target. In response, Wolff denounced Pepe, called him an “assassin” of the overhead rate, and ordered him to target a rate above 140 percent, meaning that for every dollar of labor devoted to a USAID contract, LBG would receive an additional $1.40 in overhead expenses supposedly incurred by LBG… ~ FBI Newark Division, October 20, 2011

On September 29, 2011, Contract DJJ12-C-2242 was awarded to The Louis Berger Group (Louis Berger), 250 23rdStreet, NW, Washington, DC, 20037 This contract will provide worldwide support services for the Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) of the U.S. Department of Justice’s Criminal Division. ~David Isenberg – ‘Bad Pennies and Louis Berger Group’

That’s right folks the U. S. Department of Justice (DoJ) just gave Louis Berger Group a contract. What is OPDAT? Here is a description from the DoJ’s website:

OPDAT’s mission is to assist prosecutors and judicial personnel in other countries develop and sustain effective criminal justice institutions. OPDAT recognizes that international cooperation in the investigation and prosecution of criminals and organized crime groups is central to countering international crime at its source; and that the efficient and fair administration of justice offers the greatest protection from lawlessness and support for basic human rights.

If this pisses you off, and it should, according to FedBizOpps the primary point of contact, for this contract is:  R. Steven Frate, DoJ Contracting Officer, feel free to contact him and tell him what you think or ask him “Whiskey-Tango-Foxtrot?” on this contract award! ~Forseti

Fraud Convictions and Settlements Won’t Staunch Flow of Pentagon Contract Dollars
Bryan Rahija and Neil Gordon – (POGO) – October 21, 2011 – A new Pentagon report finds that the Department of Defense (DoD) has awarded hundreds of billions of dollars to companies found guilty of, convicted of, or that settled charges of contract fraud. In total, DoD awarded $1.1 trillion to these companies and their parent companies.

The report found that from 2000 to 2010, DoD awarded more than $250 million to 54 companies that were convicted of a crime in connection with a DoD contract. It awarded $33 million of that to companies after they had been convicted. At the same time, DoD awarded more than $570 billion to more than 300 companies that were found liable or settled charges of a civil violation in connection with a DoD contract. In regard to civil wrongdoing, it appears DoD was much more forgiving: nearly $400 billion of the total was awarded after the companies had settled or were found liable.

POGO’s Scott Amey issued a statement this morning, pointing out that the report confirms what we already knew about the consequences for defense contractors accused of fraud: they’re basically nonexistent. (Click HERE for article)

Former United Nations Employee Found Guilty of Fraud
(DoJ) – WASHINGTON – October 21, 2011 – Jeffery K. Armstrong, 52, of South Riding, Va., was found guilty today by a federal jury on nine counts of wire fraud for obtaining more than $100,000 in salary payments by fraudulently holding concurrent jobs at the United Nations (U.N.) and the National Labor Relations Board (NLRB).

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