Always!! Criminals hiring criminals
US contractor pleads guilty to Iraq bribe scheme
Thu Feb 2, 2006 2:11 PM ET



By James Vicini

WASHINGTON (Reuters) - A former official with the U.S. governing administration in Iraq pleaded guilty on Thursday and admitted he and others took more than $1 million in bribes and stole more than $2 million in reconstruction money.

Robert Stein, comptroller and funding officer for the Coalition Provisional Authority - South Central Region in 2003 and 2004, pleaded guilty to conspiracy, bribery, money laundering and other charges, Justice Department officials said.

Stein, 50, of Fayetteville, North Carolina, and a former Defense Department contractor, entered the guilty plea in federal court in Washington, they said.

He admitted that he conspired, along with other public officials, including several U.S. Army officers, to rig bids to steer contracts to a certain contractor.


According to a document filed in court and agreed to by Stein, the total value of the contracts awarded to Stein's co-conspirator in the Iraqi city of Hilla exceeded $8 million, the officials said.

Stein admitted that he and others received bribes exceeding $1 million in money, cars, jewelry and other items of value from the contractor, who was not identified.

Stein said he and others stole more than $2 million that had been designated for the reconstruction of Iraq and smuggled a portion of that stolen currency into the United States aboard commercial aircraft, the officials said.

He also pleaded guilty to the unlawful possession of various weapons, including machine guns, silencers and grenade launchers, and as a convicted felon, he pleaded guilty to a charge of being a felon in possession of a firearm.

Stein faces a maximum penalty of 30 years in prison and a fine of $250,000. A sentencing date has yet to be scheduled.

Also facing charges in the investigation is Philip Bloom, the owner of numerous construction and service companies that did business in Iraq, and Michael Wheeler and Debra Harrison, both lieutenant colonels in the U.S. Army Reserves. The three defendants were arrested in November or December.

Assistant Attorney General Alice Fisher told reporters at the Justice Department that the federal government was aggressively pursuing all allegations of fraud involving the Coalition Provisional Authority.

The CPA was headed by U.S. diplomat Paul Bremer, and ceased to exist in June 2004, when the United States handed over sovereignty to the Iraqis.