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Company Charged in $8B Troop Food Fraud

(CBS) A company paid more than $8 billion by the United States military to feed soldiers in Iraq, Kuwait and Jordan has been charged with fraud.

Public Warehousing Company, a Kuwaiti company now known as Agility is alleged to have overbilled the United States in its contract to distribute food to soldiers. CBS News reportedon the ongoing investigation two years ago

"This indictment is the result of a multi-year probe into abuses in vendor contracts in the Middle East involving the illegal inflation of prices in contracts to feed our troops," said Criminal Chief F. Gentry Shelnutt, the current Acting U.S. Attorney for the case.

Agility/PWC is scheduled to appear in federal court in Atlanta, Nov. 20.

The company issued a statement in response to the Justice Department charges, "An indictment is merely an allegation. PWC [Agility] is confident that once these allegations are examined in court, they will be found to be without merit." The company denies all wrongdoing adding that it has, "long cooperated with government reviews, inspections, audits and inquiries necessary to ensure taxpayer dollars are being spent appropriately."

Agility/PWC has had close ties to the Pentagon over the years. In July 2008, Dan Mongeon a former Army general who ran operations at the Pentagon's Defense Logistics Agency became the President and CEO of Defense and Government Services for Agility/PWC. The company has billions of dollars in contracts with the Pentagon.

It's unclear whether or not the fraud charges against Agility/PWC will affect the company's other government contracts. Earlier this month, Agility/PWC signed a $50 million food contract with US AID.

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