U.S. Indicts Five in Iraq Fraud
In April 2004, Stein, the indictment alleges, smuggled more than $117,000 in stolen CPA funds from Iraq into the U.S. Among other crimes, Whiteford allegedly signed weapons purchase authorization letters for various firearms and grenade launchers supposedly for the CPA, when in fact they were to be used in their security company.
In May 2004, Harrison, at Stein's urging, allegedly took nearly half a million dollars in U.S. funds from the CPA-SC office, and hid it in her barracks in al-Hillah, Iraq. So brazen were the defendants, according to Justice prosecutors, that in May 2004, Whiteford allegedly e-mailed Bloom, describing in detail, a 350Z Nissan sports car he wanted Bloom to get for him, a task Bloom then delegated to Morris. Whiteford clarified that he wanted his new wheels to be the "touring model with manual transmission, cargo convenience package, and other high-end vehicle options. And he wanted Bloom to deliver the car to Whiteford in Utah.
In July 2004, Wheeler in North Carolina allegedly got eleven handguns, four silencers, thirty one automatic machine guns, and four grenade launchers, authorized for purchase by Whiteford and Stein, paid for by Bloom with stolen CPA funds. Wheeler then took the weapons to his hotel room in the North Carolina area and then to the garage of his home, with help from Harrison and Stein.
The Department of Homeland Security played a big role in the investigation. An Immigration and Customs Enforcement crimes unit in the Washington area conducted analysis of more than 500,000 E-mails, electronic devices, cellphone traffic, and illicit bank accounts to chart the money trail and document the contract fraud. ICE officials also worked with Romanian authorities to track down Morris and passed on the leads to the IRS and other agencies involved in the investigation. Morris was arrested in Bucharest yesterday on a provisional arrest warrant, according to Kumar Kibble, an assistant director in the national security division at ICE.
Morris's arrest enabled the Justice Department to unseal the indictment, officials said. If he waives extradition, Morris could be brought to the United States within a matter of weeks, said James Crowell, one of the Justice Department prosecutors leading the investigation. Otherwise, Crowell said the extradition could take several months. Whiteford has not been arrested, and is expected to surrender himself to authorities. Wheeler and Harrison were arrested in 2005 and remain free on bond, Crowell said. Harrison's husband Driver has not been arrested and is expected to self-surrender, added Crowell. Stein already is in jail. He was sentenced on January 29th, to nine years in prison, after pleading guilty to conspiracy, bribery, money laundering, possession of machine guns, and being a felon in possession of a firearm. Bloom pleaded guilty last March, to conspiracy, bribery and money laundering charges and is scheduled to be sentenced next week. Hopfengardner pleaded guilty to charges of conspiracy to commit wire fraud and money laundering and has a status conference in March.
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