Defense Contractors

Pentagon Paid Billions To Defense Contractors Who Defrauded Clients

Ryan J. Reilly | February 3, 2011, 8:46AM

Over a three year period, the Defense Department spent hundreds of billions of dollars on defense contractors who paid millions in civil fines to resolve fraud cases -- and even spent $682 million on 30 contractors who were convicted in criminal fraud cases.

That's according to a report prepared by the Pentagon thanks to a provision in their spending bill by Sen. Bernie Sanders (I-VT) that requires them to prepare a report on the fraud committed by contractors. The latest report covers fiscal years 2007 through 2009, and says that the government paid $270 billion to 91 various contractors who were involved in civil fraud cases that resulted in judgments of more than $1 million.

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