Feds charge Kuwaiti company with defrauding US out of billions

ATLANTA - A Kuwaiti logistics company has been charged with multiple conspiracy counts to defraud the U.S. in connection with multibillion-dollar contracts to feed American troops in Iraq, Kuwait and Jordan.

Federal prosecutors said Monday that Public Warehousing Co. made false statements and submitted false claims to manipulate prices and overcharge for food.

The company is registered in Kuwait and has received more than $8.5 billion in food supply contracts.

Acting U.S. Attorney Gentry Shelnutt calls it "a first step." He says the "investigation of entities and persons who have defrauded the United States and our military is ongoing."

The case was filed in federal court in Atlanta and the company is scheduled for a first court appearance on Friday.

http://accesswdun.com/article/2009/11/224769