Woman Defrauds Defense Dept Out Of $20M

Contractor Faces Up To 40 Years In Prison For Exploiting Government Automated Payment System

(CBS/AP)  An owner of a defunct company accused of bilking the Defense Department out of more than $20 million, including charging nearly $1 million to ship two 19-cent washers, pleaded guilty Thursday to federal wire fraud and money laundering.

Charlene Corley owned plumbing and hardware equipment supply company C&D Distributors LLC with her sister, Darlene Wooten, who committed suicide last fall, reports CBS News correspondent Sharyl Attkisson.

Corley faces as many as 20 years in prison for each of the counts she pleaded guilty to — conspiracy to commit wire fraud and conspiracy to commit money laundering. In addition, she owes as much as $750,000 in fines, said Assistant U.S. Attorney Kevin McDonald.

The company has repaid the government $4 million, and the government has seized an additional $7 million in cash and other assets, including beach houses and other land, he said.

From 1997 to 2006, Corley and Wooten exploited an automated shipping payment system designed to speed shipments bound for U.S. forces overseas by submitting huge bills to ship inexpensive items, prosecutors said.

Prosecutors said among the fraudulent charges were ones for $998,798 to ship two 19-cent lock washers, $492,097 to ship an $11 threaded plug, and $499,569 to ship 10 cotter pins worth $1.99 each.

The investigation revealed the company had sometimes double-billed for supplies and charged even when the government denied its services, said Army Lt. Col. Brian Maka, a Pentagon spokesman. The billing of the washers was one of the most egregious charges, he said.

“A 19-cent lock washer you could put an envelope in the mail and mail it with a 14-cent stamp,” Maka said.

McDonald said the payment system has been changed.

But Winslow Wheeler, of the Center for Defense information, says the case demonstrates just how big of a mess the Pentagon's auditing system still is, reports Attkisson. In the 1980s, Wheeler worked for Congress tracking the scandal where the Pentagon was found paying $400 for a hammer.

“Nobody fixed the fundamental problem. As a matter of fact, it's worse,” said Wheeler.

“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. “This particular contractor bilked the system by taking advantage of the process.”

Corley's lawyer, Greg Harris, said Wooten handled bidding and shipping for the company and was directly responsible for the fraud. Wooten committed suicide in October 2006 after being contacted by authorities about the case, according to prosecutors. Before doing so, she wrote a $4 million check to the Defense Department, McDonald said.

Harris said that over the past five or six years the company submitted more than 10,000 bids to the government and that the federal investigation found between “100 and 125 invoices that were paid and that were associated with this fraud.” Money from the fraud also went into salaries and growing the business, he said.

Harris said his client has been assisting the government in identifying, locating and liquidating assets associated with the fraud. Corley is free on a $250,000 unsecured bond. Her sentencing date has not been set, Harris said.

The Defense Department is now investigating cases of fraudulent charges by other contractors, Maka said, although he could not specify how many.

“We're going to do whatever it takes to retake the money that's stolen from us,” he said.

[seven-pesos]

those bush loving southerners really love war...

bush becomes the decider...

and his minions reap the profits.

bush, gonzalez, condisleezeball, foley, vitter, robertson, swaggart, falwell...

all southern, all christian, all republican, all snakes...

slave state dixie snakes...

war, hate, arrogance, christian creeps, republican snakes.

nothing good comes out of the south.

[cantshutup]

she should run for president...after all she''s got the same morals as the one we''ve already got

[citizenusa-2009]

We really runnin a tight ship here Prez! Yup, the "decider" has everything well in hand. (After the government prosecutes her, they need to investigate Hilliburton). Ooops, I forget, they allegedly steal the legally. My bad!

[citizenusa-2009]

Sorry, I meant to say, "steal legally". I get so worked up when I read how screwed up "the system" is.

[lorinkundert]

There is only one difference between the liberals and Hugo Chavez, He''s Venezuelan.

[prinzowhales]

I''m looking forward to hearing ''speakingup'' tell us not to worry about how the government spends our tax dollars on this particular board.

Over a trillion in money and supplies are missing from the Pentagon...this is just a drop in the bucket...Here''s an article regarding Rabbi Dov Zakheim, a dual Israeli-American citizen, the Pentagon comptroller who resigned when he couldn''t explain it. Then there is the $2.3 trillion that Rumsfeld said was missing on....September 10, 2001. The article also deals with the more nefarious relationships of the good rabbi and CIA front companies...

We shouldn''t worry about that either...IN A PIG''S EYE!!

http://onlinejournal.com/artman/publish/article_1047.shtml

Get mad, get real mad!!!

[cfin5]

Nothing new here. The Civil War documentary by Ken Burns (excellent!) said these kind of companies did the same thing to the military back then. What''s amazing is how long they got away with it. Send me a bill like that and I''d have to go buy a new phone for too much spit in the old one.

[jetranger7]

Yip, the Prez and VP-PREZ, are definetly on top of things ! Like all those missing guns shipped to Iraq, they can''t account for ! All the Tax Payer money Blown into the Billions for Iraqi reconstruction, they can''t seem to account for ! No money for our troops protection tho ! Ohh Bushs fiance Condom Rice, approved 30-Billion dollars of US Tax Payer Aid to the Israelis, and another 30-million to some other dim wit country earlier this year ! Walter Reed still in a ,mess ?Ya, fight for this country, so we can let all the Illegals come over and create havoc,steal cheat and demand government handouts, at the expense of you the US Tax Payer, Bush & Cheney will grant them amnesty ! Meanwhile support this phony War, those terroist are out to get you, but not the Illegals jumping the border, ohh hell no !! The Republican Brain Dead Zombies, just love to mis-spend your money and lie about it, and nobody is over seeing anything ! Just let the system run amuck ! Thanks Bush & Cheney, you both get an "F-" for your lack of ability to do anything right, you FLUNKED ! WWW.INFOWARS.COM

[j-whitman]

lorinkundert,,,, More of your GOP Hitler rhetoric hating libs there Lorin ??? I don''t speak Spanish & Bush is the one who is called the Dictator. Isreal would have armed them as they did every other Central American dictatorship.

[sgtrds]

$1 million dollars shipping and handling for two nineteen cent washers? Man and I thought the people on Ebay stuck it to you!

[perception5]

Libs read and weep..

Come on Hillary Rotten-Clinton I''''m loving the odds for a GOP landslide in 2008. Romney/Huckabee!

Now for some fresh numbers on Hillary: (love it!)


"In contrast, Clinton''''s favorable numbers have dropped a bit. She is now viewed favorably by 45%. That%u2019s the first time all year her ratings have dipped below the 47% mark. Clinton''''s unfavorables have always been high and are currently at 52%. " - Rasmussen August 16th

This is going to force CBS (Clinton Broadcasting Station) to rachet up the Anti-GOP Propaganda machine. Yep the liberal staff of jounalists for CBS (Corrupt Broadcasting Station) will have their work/LIES cut out for themselves.

[andor3]

war is a system where you spend billions on things designed to blow up and instantly turn valuable weapons into worthless bits, and maybe destroy some other valuable things with them.

So you know it is really important to watch every dollar spent so there is enough money left to blow up.

[starleo146]

Posted by jh6379 at 05:19 PM : Aug 17, 2007

Yes, they will get Haliburton a medal of honor given to them by Cheney at the end of his term if they decide to leave.

[starleo146]

Posted by jh6379 at 05:19 PM : Aug 17, 2007

Yes, they will get Haliburton a medal of honor given to them by Cheney at the end of his term if they decide to leave.

[pepperp1]

Ha, ha, ha, ha, ha, ha,

Good job why work.

[timantane]

Do you people even read the articles? "From 1997 to 2006" Doesn''t that cover two different presidencies?

[pepperp1]

Do you people even read the articles? "From 1997 to 2006" Doesn''''t that cover two different presidencies?
Posted by TimanTane at 06:22 PM : Aug 17, 2007

What does that have to do with anything, lol oh sorry Bills fault right, uh huh I see sure uh huh,

............it the continuous flushing sound and sucking motion of all that sweat going down the drain....do miner have to pay taxes tooooooo?

[drummer94]

The one twin killed herself in March. The other is still living in her mansion waiting for sentencing. I thought this kinda stuff went out with the 600 dollar toilet seats and the 400 dollar hammers? And who in whichever gov''t office sent the check(s)? Fired. Fired. Fired.

[donnie900]

Its just rhetoric, drummer. They just say that stuff.

[cere51]

Not good enough! The lady who committed fraud should go to jail, no doubt, no excuses... but that''s not good enough! Someone at the Pentagon needs to be axed... the whole department should be fired and restaffed with adults who know how to read and think and act... if this happened in the private sector the place would be turned upside down and someone would hang as an example to all future idiots. Someone in the press needs to push this thing until we have a satisfactory response from the Pentagon leaders or the president!

[mayihavemore]

She writes 4 million dollar check & kills herself! How long will investigations take for current contractors (bid & no-bid)take? Probably another 6 or 7 years. So thats why Halliburtin moved! Congress should freeze money for past & present contracts. Representavie Jefferson has a freezer that can be used.

[likeitis5050]

Unbelievable...I don''t know why I am shocked given the history...but this is just b..allsy.

[grimloxz]

This is what I''m talking about. This is common place among contractors. This kind of wanton theft is what takes place in varying forms at the state and federal levels - can you imagine the theft that id happening in Iraq and other ''developing'' countries??

This is the kind of mooching that is really affecting the ability of this country to provide for its citizens. This was just one, just ONE contractor and just take a look at those figures!! This has been common place in American politics for decades if not the last 150 years and there are people who dare, who are stupid enough to imply that immigrants, blacks, unions or whatever other scapegoat they''ve got up their sleeves, are the one''s bilking the system???

***???

There''s a gorilla at the dinner table that is conspicouslly missed...

[sjc_1]

Let''s see, Haliburton defrauded the Pentagon out of $300 million, so that should mean that all of its board and officers spend 40 years in jail. Nope, the Pentagon let it sit for 90 days and then signed off on it.

[oakishpines]

to let a pet or a child run wild is a dangerous thing, for all my neighbors taught me to pick up stray pets and children and deposit them someplace civil where they may be chased through gardens and criticized to screaming and tears for naked lazy ignorant profane blemished tired hungry lusty bored scared sad or stray or for dancing, in a porno get sick tax world society, get well feed world songs rallied around sick beds drifting tens millions spore bloom weed dragon trail fickle first aid lunch farm cottage studio trail groups

i''''d rather be dead than to live in this perverted freakish land of the daring grindets and the home of the shock and awe swingones

if i have to break all the bones in my body and put them all back for *** and pleasure just one more time cause some hikenswim nerfbus bump car camp n nap somebody feels like get''''n frisky,

i swear find a cure for the common life


'' ... why go to war to save the world from folk that invest money and votes in non-charity and taxation at gunpoint? ... ''

[galaxiana]

Something stinks here (besides the obvious, of course.) You''ve got a sister who writes a $4 million check, and then offs herself? *** her sister/business partner in the process?

No, it''s more likely that someone from a certain government 3-letter agency put a gun to the woman''s head, forced her to write the check (probably for all the money the company had) and then snuffed her out, making it look like a suicide.

I mean really, why would this woman screw her sister just because she didn''t want to face the music herself? Does that sound right to you? Cave in to the government by writing the check, and then killing yourself? Something''s wrong here...

[abdalhazred]

I have to disagree with Cere51... this kind of corruption goes on all the time in the private sector. Why do you think they''re in such a hurry to get rid of Sarbanes-Oxley?

[lars008-2009]

it is fascist nazi terrorislam stupid...

non muslims of the world unite... fight against the tyranny of the fascist nazi terrorslam imperialist empire of the darkside...

I was a fanatic...I know their thinking, says former radical Islamist
By blaming the Government for our actions, those who pushed this "Blair''''s bombs" line did our propaganda work for us.
More important, they also helped to draw away any critical examination from the real engine of our violence: Islamic theology.
http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=465570&in_page_id=1770

Bless the Beasts and Children
Fascist nazi terrorslam kills every man woman and child in the village again%u2026 typical mo for terrorslam%u2026
http://www.michaelyon-online.com/wp/bless-the-beasts-and-children.htm

Our Prophet commanded us to fight the kaafirs when we are able and to attack them in their homelands and to give them three choices before we enter their lands: either they become Muslim and be like us, sharing our rights and duties; or they pay the jizyah (poll tax) and feel themselves subdued; or they fight, in which case their wealth, women, children and homes become permissible as booty for the Muslims.
http://islamqa.com/index.php?ref=13759&ln=eng&txt=before%20islam%20arabia%20pagan

[brianbwb-2009]

Posted by lars008,

So, been yij hier, ook, vuile snee?

Now the implication is that government corruption is OK, as long as the government is killing Muslims?

Time to move on, dude, your Muslim ex boyfriend has gone straight, get over it. Try converting to Buddhism.

[lars008-2009]

what do you call an ideology that:

kills you if you don''t join it...

http://islamqa.com/index.php?ref=82201&ln=eng&txt=islam%20law%20kill%20kaafir

kills you if you leave it...

http://islamqa.com/index.php?ref=696&ln=eng&txt=kaafir%20kill

kills you if you don''t do what they tell you to do..

http://islamqa.com/index.php?ref=6035&ln=eng&txt=kaafir%20kill

kills you if you speak against it%u2026.

http://islamqa.com/index.php?QR=22809&ln=eng

kills anybody that is not a member of it...

http://www.hauns.com/~DCQu4E5g/koran5.html

still practices slavery

http://islamqa.com/index.php?ref=12562&ln=eng&txt=slavery

still practices pagan rituals...

http://answering-islam.org/Silas/pagansources.htm

allows the r a p e of babies and animals...

http://www.homa.org/default.asp?TOCID=2083225445

a. satanic cult???
b. islam???
c. all the above???

Our Prophet commanded us to fight the kaafirs when we are able and to attack them in their homelands and to give them three choices before we enter their lands: either they become Muslim and be like us, sharing our rights and duties; or they pay the jizyah (poll tax) and feel themselves subdued; or they fight, in which case their wealth, women, children and homes become permissible as booty for the Muslims.
http://islamqa.com/index.php?ref=13759&ln=eng&txt=before%20islam%20arabia%20pagan

[lars008-2009]

Is islam a violation of international law???

islam practices slavery on non muslims
islam practices apartheid on non muslims
islam practices rape on non muslims
islam practices rape on babies and animals
islam practices genocide on non muslims

all are violations of international law and are crimes against humanity

Universal Declaration of Human Rights
http://www.un.org/Overview/rights.html
http://www.cbsnews.com/stories/2007/02/22/world/main2505445.shtml
Imam Khomeini - Supreme Leader of the Islamic Revolution
http://www.homa.org/Details.asp?ContentID=2137352826&TOCID=2083225445
Malaysia women ''suffer apartheid''
The daughter of Malaysia''s former prime minister has launched a scathing attack on the roles and status of Muslim women in the country.

http://news.bbc.co.uk/2/hi/asia-pacific/4784784.stm
A matter of tolerance
http://musingwithmarinamahathir.blogspot.com/2006/12/matter-of-tolerance.html
Marina Mahathir
http://musingwithmarinamahathir.blogspot.com/
http://www.google.com/search?hl=en&q=slavery+islam&btnG=Search
http://news.bbc.co.uk/2/hi/asia-pacific/4795808.stm
http://www.google.com/search?hl=en&q=apartheid islam
http://www.google.com/search?hl=en&q=rape islam
http://www.google.com/search?hl=en&q=rape islam babies&btnG=Search
http://www.google.com/search?hl=en&q=genocide islam&btnG=Search

[lars008-2009]

NONE OF US IS FREE UNLESS ALL ARE FREE!!!

WHY IS IT NOT ONE MUSLIM COUNTRY GRANTS EQUAL RIGHTS TO NON MUSLIMS???

FASCIST NAZI TERRORISLAM SAYS UNIVERSAL DECLARATION OF HUMAN RIGHTS VIOLATES ISLAM LAW...

Universal Declaration of Human Rights
http://www.un.org/Overview/rights.html

For example, in 1981, the Iranian representative to the United Nations, Said Rajaie-Khorassani, articulated the position of his country regarding the Universal Declaration of Human Rights by saying that the UDHR was "a secular understanding of the Judeo-Christian tradition", which could not be implemented by Muslims without trespassing the Islamic law.

http://www.un.org/terrorism/
http://www.un.org/terrorism/strategy-counter-terrorism.html
http://www.un.org/

But the accepted assumption in India is that most of India''s Muslims were converted to Islam through the sword. Meaning the Indians were given an option between death or adopting Islam. The third option was getting examined in Islam religion along with heavy taxes- Jeziya (poll tax) and Kharaj (property tax).

http://adaniel.tripod.com/Islam.htm

this is what fascist nazi islam calls peace....

are you ready to live under islam rule as a non muslim???

apartheid fascist nazi islamic style

Rights of Non-Muslims in an Islamic State
http://www.sullivan-county.com/id3/islamic_state.htm

[alphaa10-2009]

Corporate welfare programs easily account for billions in federal contractor "overruns", duplication and waste-- all this, with no mention of criminality or blatant corruption, at all.

The thinking from Bush, Cheney, Rumsfeld, etc., is this-- why make a public spectacle of handouts of taxpayer ddllars to the corporate giants which contribute to Bush campaigns, when these handouts can be sanitized as "business as usual"?

Under Rumsfeld, for example, the corporate welfare aspect assured Boeing it could make a buck from renting air tankers to the USAF, instead of merely selling the tankers. The resultant "efficiency" was such a smelly scandal, the program never took flight, but it came close.

Halliburton, however, got away with much more. Big H got billions for Iraq for which it never was forced to account. Halliburton also left massive Iraq "reconstruction" projects simply unfinished, without returning the money it was paid to complete them.

No wonder Bush gets such enthusiastic backing from certain faithful GOP corporate contributors-- after all, the living is easy, and nobody''s workin''. This theft of public monies makes Bush and his mendacious cronies into major white collar thieves. While their mentality leaves them petty criminals, their thefts are massive.

[figuy30]

Gao is asleep and apathy abounds. Congrats to the patriotic men and women being paid to look out for America. With enough rhetoric from presidential hopefuls, and shallowness of minds from voters perhaps our future will be filled with more of the same. The new generation of Americans are our only hope. The previous have been a big let down.

[oakishpines]

if the christians simply must have to conquer the cherokee today, then tomorrow it will be the navajo, or the baptists, or someone else, if there is one opponent, then there are infinite opponents and the end result is the disappearance of christians

there are seven billion folk and so seven billion companies

if each must ultimate murge into one company fits all, then the business plan of the one is no more well than the business plan of the many and will ultimately fail

there must be one ''light bulb'' or ''miracle'' of a business plan that really does fit all

but congresses busy stamping out the competition that is busy stamping out the competition, are destined to be stamped out whether they win or lose, for their business plan is faulty with a terminal loop error


to dance get well feed world songs rallied around the sick beds drifting tens millions spore bloom weed dragon trail fickle first aid lunch farm cottage studio trail groups and porno get scik tax world song, or to dance but non-porno get sick feed worlt songs?

[samrensho]

I''m surprised more cases like this have not come to light. There must be thousands given the way the government mismanages the "war on tear". She must be a democrat and hence attracted Alberto''s scrutiny.

[my2centss]

Why do you get more time for defrauding the government than you do for the elderly, molesting children, rape, murder, running companies into the ground, stealing retirements, and etc...

[rhs648]

No wonder Bush gets such enthusiastic backing from certain faithful GOP corporate contributors-- after all, the living is easy, and nobody''''s workin''''. This theft of public monies makes Bush and his mendacious cronies into major white collar thieves. While their mentality leaves them petty criminals, their thefts are massive.

Posted by alphaa10

Sounds like none of this graft, greed, and corruption existed under democratic presidents. Believe that and I have a bridge to sell you.

[lars008-2009]

it is fascist nazi terrorislam stupid...

non muslims of the world unite... fight against the tyranny of the fascist nazi terrorslam imperialist empire of the darkside...

I was a fanatic...I know their thinking, says former radical Islamist
By blaming the Government for our actions, those who pushed this "Blair''''''''''''''''s bombs" line did our propaganda work for us.
More important, they also helped to draw away any critical examination from the real engine of our violence: Islamic theology.
http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=465570&in_page_id=1770

Bless the Beasts and Children
Fascist nazi terrorslam kills every man woman and child in the village again%u2026 typical mo for terrorslam%u2026
http://www.michaelyon-online.com/wp/bless-the-beasts-and-children.htm

Our Prophet commanded us to fight the kaafirs when we are able and to attack them in their homelands and to give them three choices before we enter their lands: either they become Muslim and be like us, sharing our rights and duties; or they pay the jizyah (poll tax) and feel themselves subdued; or they fight, in which case their wealth, women, children and homes become permissible as booty for the Muslims.
http://islamqa.com/index.php?ref=13759&ln=eng&txt=before%20islam%20arabia%20pagan

[kennergirl]

Well this story beats the $400 hammer story!

[lars008-2009]

It is in vain, sir, to extenuate the matter. Gentlemen may cry, Peace, Peace--but there is no peace. The war is actually begun! The next gale that sweeps from the north will bring to our ears the clash of resounding arms! Our brethren are already in the field! Why stand we here idle? What is it that gentlemen wish? What would they have? Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take; but as for me, give me liberty or give me death! March 23, 1775 Patrick Henry

USA''s PLEDGE 2 THE WORLD GIVEN BY JFK!!

"Let every nation know, whether it wishes us well or ill, that we shall pay any price, bear any burden, meet any hardship, support any friend, oppose any foe, in order to assure the survival and the success of liberty." - John F. Kennedy, Inaugural Address, Jan. 20, 1961

"Ask not what your country can do for you. Ask what you can do for your country." - John F. Kennedy, Inaugural Address, Jan. 20, 1961

One ought never to turn one''s back on a threatened danger and try to run away from it. If you do that, you will double the danger. But if you meet it promptly and without flinching, you will reduce the danger by half. Winston Churchill

"The world is a dangerous place, not because of those who do evil, but because of those who look on and do nothing." Albert Einstein

Edmund Burke: All that is necessary for evil to succeed is that good men do nothing.

[mickgabe]

YOU KNOW

Presently I am Encouraging all Young American Men & Women to emigrate to anyplace of your choice " Not only for You ............but...........Your Children" Where the BS American Dream is not a reality...........as it is........here! Ha
Free Health Care.Education.Retirement and all the good things in Life..............AS YOU WON''T FIND HERE IN THE LAND OF THE ..........free????

An ExPatriot............

[sjc_1]

There are many more examples and I hope some group puts them all together and lets the American people know. It is the environment that is created from the top that sets the stage for all of this to happen. Reagan did it with the "government is the problem" phrase. It was open season on ripping everyone off and scorning law with Iran Contra. Bush has made it known that he only cares about a few things and the rest forget about. In that way he is similar to Reagan, in secrecy he is more like Nixon. But the stage is still set for corruption, none the less.

There was the story of Randy "Duke" Cunningham, a representative from North San Diego county and retired military officer taking bribes for rigging military contracts. They said that Randy had an "out sized ego", which meant that he felt entitled to the perks of his position. He was paid by a little known company that just came into existence called MZM. MZM bought him a mansion and a yacht and a Rolls Royce. All they wanted in return was a $50 million dollar Pentagon contract every year to do essentially nothing. This is what the Republican traitorous greed mongers do to this country. Randy Cunningham should not be able to receive his military nor Congressional pension. But guess what, he still gets BOTH of those.

[jayholiday-2009]

this is the reason why people that really need funds,can''t get them.here I am a 54 year of with SICKLE-CELL ANEMIA, That has a foot ULCER, and I can''t even get a $20.00 food stamp!!!!!

[gmond]

"%u201CA 19-cent lock washer you could put an envelope in the mail and mail it with a 14-cent stamp,%u201D Maka said."

They still don''t know how much shipping costs.