Three executives connected to a defense contractor were charged for allegedly defrauding the United States military and for breaking U.S. sanctions on Iran. One of them was a significant contributor to the Democratic party, former State Secretary Hillary Clinton, and former President Bill Clinton.
The contractor, the Dubai-based Anham corporation, lied to the military in order to get an $8 billion 10-year contract in 2012 to supply food for U.S. troops in Afghanistan. It also had materials and equipment shipped through Iran—in violation of U.S. sanctions—to cut costs, the prosecutors said.
Fake Construction
The massive supply contract required the contractor to have large warehouses to store food in Afghanistan. Anham claimed that the process of constructing such warehouses would be done well before the contract was to be awarded. But that was a lie, according to the indictment (pdf). The construction had barely started months after the company submitted its bid. To get the contract, the company arranged equipment and machinery “to create the false appearance of an active construction site,” the indictment alleges.Sanctions
As the company finally progressed with the construction, it shipped major components of the warehouses through Iran in violation of sanctions placed on Iran by the Obama administration.Trucks Through Iran
In 2012, Anham also received at least $423 million in a Defense Department contract for trucking services in Afghanistan.The defendants were each charged with two counts of major fraud, one count of conspiracy to violate the restrictions on doing business with Iran, four counts of substantive violations of those restrictions, and one count of conspiracy to commit international money laundering.
The case was investigated by the Immigration and Customs Enforcement’s Homeland Security Investigations in Washington, and by investigators at the office of the Special Inspector General for Afghanistan Reconstruction.