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Iraq Contracting Bribes: $9.6 Million Flowed Like Water
If Major John Cockerham had only known Thomas Kontogiannis, maybe the whole sordid story would have turned out differently.
Cockerham was an Army contracting officer in Kuwait who, a criminal complaint alleges, is at the center of the largest corruption case yet to emerge from the Iraq war. It's a picaresque story involving crooked Kuwaiti and Emirati businessmen with codenames like "Mr. and Mrs. Pastry." In 2004 and 2005, according to the complaint, Cockerham, his wife and his sister, took $9.6 million in bribes, kept in safe-deposit boxes in a number of Persian-Gulf cities, in exchange for contracts for things like drinking water.
According to the Washington Post, the Cockerham family could be formally indicted as early as today. While investigators have only been able to locate $415,000 of the nearly $10 million the money that the Cockerhams allegedly took from their business partners, they face charges for money-laundering, bribery and conspiracy.
The story is both absurd and mundane. From the Post:
According to court documents, the owner of Trans Orient General Trading in Kuwait allegedly offered Cockerham a bribe for a lucrative contract to supply bottled water. Prosecutors allege that the owner of Trans Orient and another man linked to the company met Cockerham in June in a parking lot of the Kuwaiti military base where he worked. The two men allegedly showed him a briefcase containing $300,000 cash and said it was a "good-faith" payment, with more to follow. Cockerham did not take the cash, but authorities say it was later deposited in a bank account to which Cockerham had access.A short time later, one of the men approached Cockerham, saying he knew how he could "make some more money" with a different vendor, Green Valley Co. of Kuwait. This was followed by another alleged parking-lot meeting, in which court documents say one of the men showed Cockerham a briefcase with $300,000 in cash. Again, Cockerham didn't take the money but was allegedly told by the man that it would be placed in a U.S. bank account for him.
On Oct. 18, 2004, Cockerham signed a contract with Green Valley.
What is it with water contracts and corruption? Recall that ADCS chief Brent Wilkes got his buddy, then-CIA procurement chief Kyle "Dusty" Foggo, to secure for him a deal worth $1.7 million to supply CIA operatives in Iraq with bottled water. All it took was a Wilkes-paid fishing trip to Scotland for Foggo to assure Wilkes, "I'll work this water thing."
Anyway, back to the Cockerhams. Shortly after John's initial round of bribes, Cockerham allegedly got his wife Melissa and his Kuwait-based sister, Carolyn Blake, to act as his mules. On instructions from John -- Melissa allegedly told investigators that she didn't want to ask "too many questions," the two would travel to Kuwait City and Dubai, where they would receive hundreds of thousands of dollars in cash from would-be contractors, and stash it in safe-deposit boxes that the government has yet been unable to find. (Members of the family dispute where exactly the different payments are located.) Suspicious Army investigators might not have been able to make a case -- had John not been so good with a balance sheet.
At some point, according to the affidavit, John Cockerham started keeping a handwritten ledger of money given to him or to other people for him. Blake also kept a ledger of the $3.1 million she allegedly collected on her brother's behalf. Blake apparently used a code to identify people who paid her, writing amounts next to a variety of assumed names -- for example, Mr. & Mrs. Pastry: $340,000.Blake's ledger, which has been seized by government authorities, also shows she took her cuts. One note read: "Carolyn's 10 %."
It's unclear how investigators learned of the bribery scheme. But in December, over a year after the Cockerhams returned to San Antonio, agents raided their home and found the ledgers. John and Melissa apparently came clean to investigators about most of the scheme -- but prosecutors intend to produce evidence from just last month indicating that John sent e-mails to wife and sister as to how to cover up illicit transactions that the government likely didn't know about.
Just a guess, but they probably didn't advise Melissa and Carolyn to use a cousin's company to pay the mortgage on a corrupt congressman's house. Too bad: while John, Melissa and Tommy K are all considered flight risks, only the Cockerhams were denied bail. Maybe they should consider snitching.
Comments (23)
Dr. Wu wrote on August 22, 2007 10:37 AM:Can't find the rest of the money? That's okay--the Cockerhams won't be able to spend it after they have been lined up against a wall and shot.
Molly Ivins wrote on August 22, 2007 11:05 AM:Raise Hell!!
jeffgee wrote on August 22, 2007 11:11 AM:Water. It's the new oil.
markg8 wrote on August 22, 2007 11:14 AM:C'mon nobody's gonna shoot them Doc. And after a "decent interval" unless the likes of Spencer and TPM stay on the case the feds might even "lose interest" in the case.
footsore wrote on August 22, 2007 11:40 AM:I'd say call the IRS, but war zone money is non-txable. Ah hell call the IRS anyway! Oh that's right he(cockerham)is rich and will be overlooked anyway. God I love free enterprise.
karensky wrote on August 22, 2007 11:42 AM:footsore
War-profiteering = treason.
chabuka wrote on August 22, 2007 11:49 AM:They will get a couple of months in jail (suspended of course) steal big, get a slap on the wrist...to bad the punishment never matches the crime in government contracts...stealing from the taxpayers..no big deal..theres plenty more where that came from
1oldlady wrote on August 22, 2007 11:51 AM:Well, I don't know about you, but there's a pattern here...TEXAS! Shit, what's with this 'state' and the people who come from it!
Ah...but hold on to your hats!!! is there a Bushie connection here? Hum! something to think about?
An Outhouse wrote on August 22, 2007 11:58 AM:Just think about all the companies that have/had connections with the Bush's! It seems to be the 'Natural Resources' are the key here that keep crap like this flowing. (oil,water,gas..etc)
Security Code: Free
as in Free Money!!
NitPicker2 wrote on August 22, 2007 12:25 PM:There's hope, folks!
Molly spelled her name correctly today!
Also "raise" and "hell."
Even the sc is helping: "screw."
Voting Present wrote on August 22, 2007 12:25 PM:Obviously Cockerham's mistake was that he made insufficient campaign contributions to the Republican Party. If he had, he could just insist that the prosecutors be fired. Well, maybe he contributed enough to wind up on the January 2009 pardon list.
Seriously, $10M is a lot of money. In Washington, according to the 1% rule, a bribe that size would be expected to buy close to $1B in contracts. Maybe the percentage is different in Kuwait?
Bessert wrote on August 22, 2007 12:46 PM:"War-profiteering = treason."
Posted by: karensky
-I agree completely.
dingbat wrote on August 22, 2007 12:54 PM:From now on it would be a big help if, along with a story like this, we're also told what "faith" the principals were raised in and what "church" they now attend. I think that it's important that we be able to see "faith in action" and "values" at work to make our world a better place, don't you?
regular lurker wrote on August 22, 2007 1:08 PM:Water?
Did you miss the recent story about Pepsi? You must think things are different in Kuwait. Puh-lease.
"...A half-liter of Pepsi's Aquafina at a Tucson convenience store costs $1.39. The bottle contains purified water from the Tucson water supply. From the tap, you can pour over 6.4 gallons for a penny. That makes the bottled stuff about 7,000 times more expensive, even though Aquafina is using the same water source...."
Wahoo wrote on August 22, 2007 1:45 PM:Lying to Start a personal War = Treason
Scott L wrote on August 22, 2007 2:24 PM:What a bunch of pikers. They must not be good Republicans. By the way did anyone ever find out what happened to that $12 Billion in cash that was LOST over there?
Pompano Pete Jr wrote on August 22, 2007 2:52 PM:Perhaps we should be asking all the surge supporters to explain and justify this type of treasonous behavior and what they believe the penalty for war profiteering should be?
Phoenix Rising wrote on August 22, 2007 5:08 PM:Pretty good haul for two years of contract negotiations.
Security code: pocket (no explanation needed. Does the code picker read the article and comments when choosing words to use?)
janefromhell wrote on August 22, 2007 5:25 PM:Don't forget Bush family's purchase of 98,840 acres in Paraguay, atop one of the world's largest fresh-water aquifers...aside from the angle of sanctuary from War Crimes charges...
Gene Osteen wrote on August 23, 2007 12:50 PM:Like Dylan said: "Steal a little, they throw you in jail, still a lot, they make you KING
VietnamVEt wrote on August 23, 2007 4:58 PM:Granted, this case is significant, but if the truth is ever revealed, it will probably pale when compared to the Halliburton sole-source contract in Iraqi. Here is a post I have made on several other blog sites. Maybe someone up there will pick up on this some day, but I am not going to hold my breath while this administration is in office. Here it is:
As a former Government Contracting Officer, I have continually posted comments on other sites as to why nothing has been done to investigate the award and subsequent administration of the Halliburton sole-source contract. The award of this contract on a sole-source basis is highly questionable and its subsequent management even more so. I seriously doubt that its award was in line with the requirements of the Federal Acquisition Regulation (FAR) that governs the award and administration of contracts. (Especially use of the contract over an extended period of time, rather than as a temporary measure.) Some time back, emails attributed to VP Dick "Halliburton" Cheney surfaced, as well as some damaging comments by some of those involved in the contract award, that clearly showed that Cheney was involved in the award to insure that it was awarded to his old company, Halliburton. Since then, only silence! There have been leaks of information clearly indicating the possibility of fraud, such as soft drinks sold to the Government at $4 to $5 a can, illegal payments, lack of enforcing penalties for delays and/or non-compliance with requirements, etc., etc. Fairness to the American tax payer cries out for an extensive look at the Halliburton contract as well as the subcontractors. Will we see it? Probably not until this Administration is booted out of office and someone with the guts to proceed surfaces!
Federal Employee wrote on August 23, 2007 8:27 PM:I was working at Camp Arifjan as a federal civilian when I discovered my supervisor in the middle of a fraud and I confronted him and I was promptly replaced. I made disclosures to both the NCIS as well as the DCIS and several people on my project were interviewed and turned over information about further fraud and it's my opinion that my disclosure probably started this entire investigation.
I was sent to Kuwait in order to help our young men and women in harms way and not to rob the system of the very funds needed to supply our troops with whatever they need in order to return home safe and sound. I think any act of stealing money earmarked for our troops should be considered and act of treason.
I was approached by several people once I returned home and was accused of being a snitch and they claimed that I "violated the code of the streets" and my reply was simply this, I don't live in the streets and the only code I had was the code of honor for those men and women who would die for me and it was out of respect for them as well as their families that I did what I did.
I have since been told by my federal agency that due to my disclosures to the NCIS and the DCIS that I will never advance in my career and to them I say this "I advance every time I watch the news and I see our young men and women come home and I simply think to myself that I may have had some small part in making that happen that knowledge alone is worth more than any advance I could ever receive in my career.
To our brave men and women; Thank you for your service and I pray that you will all return home to your families safe.
benson wrote on December 16, 2007 8:29 AM:STRICTLY CONFIDENTIAL
Request For Urgent Business Relationship
Lagos, Nigeria.
Attention: Sir / Madam
Dear Sir,
Confidential Business Proposal
Having consulted with my colleagues and based on the information gathered from the Nigerian Chambers Of Commerce And Industry, I have the privilege to request your assistance to transfer the sum of $47,500,000.00 (forty seven million, five hundred thousand United States dollars) into your accounts. The above sum resulted from an over-invoiced contract, executed, commissioned and paid for about five years (5) ago by a foreign contractor. This action was however intentional and since then the fund has been in a suspense account at The Central Bank Of Nigeria Apex Bank.
We are now ready to transfer the fund overseas and that is where you come in. It is important to inform you that as civil servants, we are forbidden to operate a foreign account; that is why we require your assistance. The total sum will be shared as follows: 70% for us, 25% for you and 5% for local and international expenses incidental to the transfer.
The transfer is risk free on both sides. I am an accountant with the Nigerian National Petroleum Corporation (NNPC). If you find this proposal acceptable, we shall require the following documents:
(a) your banker's name, telephone, account and fax numbers.
(b) your private telephone and fax numbers —for confidentiality and easy communication.
(c) your letter-headed paper stamped and signed.
Alternatively we will furnish you with the text of what to type into your letter-headed paper, along with a breakdown explaining, comprehensively what we require of you. The business will take us thirty (30) working days to accomplish.
Please reply urgently.
Best regards
MISS ROSE OKOYE /MR TONY HOTMAN
MR BENSON COOKER
TEL: 234-8034-919754