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Thread: Two sisters rip off the government.

  1. #1
    Administrator Miyagi-san Jack's Avatar
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    Two sisters rip off the government.

    "Tony Capaccio Thu Aug 16, 11:59 AM 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 a Texas base, U.S. officials said.

    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's fraudulent billing started in 2000, Stroot, the Defense Criminal Investigative Service's chief agent in Raleigh, North Carolina, said in an interview. ``As time went on they got more aggressive in the amounts they put in.''

    The price the military paid for each item shipped rarely reached $100 and totaled just $68,000 over the six years in contrast to the $20.5 million paid for shipping, she said.

    ``The majority, if not all of these parts, were going to high-priority, conflict areas -- that's why they got paid,'' Stroot said. If the item was earmarked ``priority,'' destined for the military in Iraq, Afghanistan or certain other locations, ``there was no oversight.''

    Scheme Detected

    The scheme unraveled in September after a purchasing agent noticed a bill for shipping two more 19-cent washers: $969,000. That order was rejected and a review turned up the $998,798 payment earlier that month for shipping two 19-cent washers to Fort Bliss, Texas, Stroot said.

    The Pentagon Defense Logistics Agency orders millions of parts a year. Stroot said the agency and the Defense Finance and Accounting Service, which pays contractors, have made major changes, including thorough evaluations of the priciest shipping charges.

    A review of paid shipping invoices showed that fraudulent billing is ``is not a widespread problem,'' she said.

    ``C&D was a rogue contractor,'' Stroot said. While other questionable billing has been uncovered, nothing came close to C&D's, she said. The next-highest contractor billed $2 million in questionable transport costs, she said.

    Guilty Pleas

    C&D and two of its officials were barred in December from receiving federal contracts. A federal judge in Columbia, South Carolina, today 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.

    Corley, 46, faces a maximum prison sentence of 20 years on each count and will be sentenced in the near future, McDonald said in a telephone interview from Columbia. Stroot said her sibling died last year.

    Corley didn't immediately return a phone message left on her answering machine at her office in Lexington. Her attorney, Gregory Harris, didn't immediately a phone call placed to his office in Columbia.

    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."

  2. #2
    America at its finest.
    The Donger need food

  3. #3
    Senior Member Master
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    Those are just the ones they caught.

  4. #4
    VIP/Contributing Member Master KAT's Avatar
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    I can't wait to pay my taxes....

  5. #5
    awe' hell, I thought Laquisha and Tylenol got busted for ho'ing when i looked at the subject.

  6. #6
    Senior Member Expert Tommy's Avatar
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    Damn!!! I guess even the gov. is up for gettin screwed by twins!!

  7. #7
    Senior Member Miyagi-san
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    It took 6 years to catch them? Who were they using for their audits, a OneEyed accountant in Arkansas?

  8. #8
    VIP/Contributing Member Sensei petezzr's Avatar
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    Quote Originally Posted by JoeP
    It took 6 years to catch them? Who were they using for their audits, a OneEyed accountant in Arkansas?
    Probably, but he's too busy being fast on the bike to give a rat's a$$ about work....

  9. #9
    Administrator Miyagi-san Jack's Avatar
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    Quote Originally Posted by Kenobe
    Those are just the ones they caught.
    Now I'm not from South Carolina, and a lot of people that I have met here aren't real smart. Granted, some are however.
    But if 2 dingy broads from SC can rip the gubment off for 20 mill then I can just imagine what people with half a wit are doing to fleece the US.

  10. #10
    VIP/Contributing Member Master KAT's Avatar
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    Quote Originally Posted by Tommy
    Damn!!! I guess even the gov. is up for gettin screwed by twins!!


    Good one T....

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