EXCLUSIVE: U.S. Businessman Allegedly Bribed Officials in Iraq (ABC)

[Judi Lynn]

EXCLUSIVE: U.S. Businessman Allegedly Bribed Officials in Iraq
American Charged for Providing Kickbacks in Exchange for Contracts

Nov. 16, 2005 — An American businessman has been charged with bribing officials with the Coalition Provisional Authority in Iraq in exchange for reconstruction contracts, ABC News has learned.

Philip Bloom is accused of providing hundreds of thousands of dollars in bribes and kickbacks to the comptroller for the South Central Region of Iraq in Al Hillah, Iraq. The comptroller's job was to make certain the bidding process was fair and aboveboard.

According to the newly unsealed affidavit, "The investigation has revealed that contracts were awarded to businesses controlled by Bloom through a rigged bidding process, that the work was ordered by certain of Bloom's co-conspirators, and that such contracts were authorized for payment by Bloom co-conspirators (in some cases without any performance of the contracts by Bloom's companies)."

Bloom operated and controlled several construction and service companies in Iraq and Romania, which were awarded contracts from the Coalition Provisional Authority — South Central Region in Al-Hillah, Iraq, according to the affidavit. Those corporations include Global Business Group, GBG Holdings and GBG Logistics Division.
(snip/...)

http://abcnews.go.com/International/IraqCoverage/story?id=1320355&CMP=OTC-RSSFeeds0312

[Bob3]

1. A Bribe - really? Who would have thought that could happen

God in heaven why should anybody be surprised about this? The billions we poured into this rat hole had to have gone somewhere and bribes and kickbacks the way it was done.

Was there any follow up about that 30 million dollars (I think it was 30 million) in cash that we flew into Iraq? I assume it vanished but I'm just wondering.

[punpirate]

5. $30 million was small change...

... there was one incident in the north of Iraq where we turned over $1.5 billion (three Blackhawks full of $100 bills) to a courier whose name no one knew and who nobody bothered to identify. No idea whatsoever, to this day, where the money went.

My only surprise in this is that he's the only one stupid and greedy enough to get caught thus far.

[Tandalayo_Scheisskopf]

7. And then...

There was the money that changed hands in the ME, on 9/12.

Yup. Sure did. TYo whom, what for and where was not even known by the guys who did the exchange. Defense contractors.

[Earth_First]

9. Who's idea was it to ship PALLETS of CASH to a combat zone to begin with

:eyes:

[punpirate]

11. The CPA called up the Fed Reserve in NYC and said...

... we need money. So the air freighters flew in and took it to them. I don't think they even had a checking account....

It's a good question to ask Jerry Bremer. He likely has a good answer. :)


edit for syntax.

[cantstandbush]

12. Tip of the iceberg. Bet more is to come. Keep a watch out.

We not only have trown bombs at Iraq we have thrown money and there is no accounting for who is using it or where it has gone.

[Just Me]

2. EWWWW!!! How much you wanna' bet he was buddies with Bremer,...

,...and the BFEE? I wonder if other companies will get pinned for embezzlement, fraud and bribery? I'll bet there are many Republican-tied corps that have engaged in such shit!!!

[AntiFascist]

3. Ummmm, a while back.....

there was a big long shit list of American corporations that participated in the oil for food scandal with Saddam. Whatever happened to this news? I think I'm beginning to understand the concept of Islamo-fascism.

[skooooo]

4. Oh say it isn't so!

[MichiganVote]

6. Oh God, is he a liberal? Clinton supporter? Baby killer?

Must be an evil liberal to do something so illegal and illegitimate

[Runcible Spoon]

8. In other related news, scientists find that ice is cold!

:eyes: methinks none of us is too surprised!

[Roland99]

10. A bio on Philip Bloom >>>>

http://www.bbp.ro/about_bloom_en.htm

[Turn CO Blue]

13. See this NBC/MSNBC story as well...

<http://www.msnbc.msn.com/id/10074995/>
NBC: Massive bid-rigging scam alleged in Iraq

U.S. says businessman bribed coalition officials to land rebuilding contracts

By Aram Roston
Producer
NBC News
Updated: 8:57 p.m. ET Nov. 16, 2005

WASHINGTON - A criminal complaint unsealed in federal court in Washington on Wednesday alleges a web of corruption and bid rigging in Iraq by officials who worked with the now-defunct Coalition Provisional Authority, the U.S.-led agency that ran Iraq for more than a year after the 2003 invasion.

The complaint accuses an American-Romanian businessman, Philip H. Bloom, of paying officials from the coalition’s south-central region "bribes, kickbacks and gratuities, amounting to at least $200,000 per month," in order to obtain reconstruction contracts through a bid-rigging scam.

more at link

[daleo]

14. Maybe a scapegoat

It could be that he annoyed Cheney somewhere along the line - maybe Halliburton didn't get their cut.

[mitchum]

15. My thoughts also

Granted, he is a war profiteer, but I lean toward the scapegoat angle

[sofa king]

16. Google Dump

http://www.bbp.ro/about_bloom_en.htm

"Vanquished former rivals may petulantly describe how “he can smell opportunity in the air,” but if this conjures up images of a fierce jungle hunter or ocean predator, then the comparison may be more accurate than expected. You might indeed say that Bloom “hunts” business with an ambition and tenacity that rivals the most formidable safari, but because the performance flows not only from training and tenure but also sheer intuition, the biggest surprise is how easy he makes it look."

"Clients include direct contracts with the US Government and several of its Prime Contractors, the Coalitional Provisional Authority and subsequent Iraqi provisional government, and innumerable domestic vendors and service organizations throughout Iraq, Turkey, and other Middle East regions."

______________________________________

http://www.businesslaws.com/default.asp?htmlPage=toc186.htm

Celerity Systems -- Manufacturing Agreement between Celerity Systems, Primax Electronics, Ltd., and Global Business Group, Ltd.

_____________________________________

http://www.gbglogistics.com/strengths.htm

Experience in working with US-based firms running international operations. GBG's client base consists primarily of major US companies operating international locations, which include: KBR, Bechtel, US Governmental institutions such as the US Air Force, OSA, and Coalition Provisional Authority. As we are ourselves an active investor in Iraq, we understand very well our clients' investment philosophy and we are in a perfect position to match them with their strategic objectives

_________________________

http://iraqiinsider.com/ubbthreads/showflat.php?Cat=0&Board=chitchat&Number=182&page=0&fpart=4

"And GBG, aka, Global Business Group. Unless you live in the camp across the street from the palace, you probably never have to deal with these KBR wannabees. In fact, they were started by former KBR people. There's some serious fraud waste and abuse happening in that camp.

"GBG is tasked with constructing and maintaining the camp for several hundred Dyncorp and BW PSD types. They also run the chow hall over there. State got so pissed that the chow hall wasn't being used enough that they've threatened the PSD guys with termination should they ever go across the street to use the palace chow hall. They recently reiterated this threat, saying that state agents will be posted in the palace chow hall to look for "unauthorized" PSD people. Never mind that everybody's CAC card paperwork authorizes one to eat in ANY government mess facility, State wants to keep the unwashed peasants out of their little fiefdom and in the corral where they belong."

___________________________

http://www.defendamerica.mil/articles/mar2005/a030805wm4.html

"One of those organizations is Global Business Group, represented at the conference by Andrew Robert Duke, Global Business Group executive in charge of new business development. Global Business Group is already importing seed, Duke said, and working with Army Civil Affairs in Taji to identify specific spots in a sector troops call IED (improvised explosive device) alley where farming projects started by former Iraqi dictator Saddam Hussein can be revitalized. Duke said anything can grow here."

[thefloyd]

17. NBC: Massive Bid Rigging Scam Alleged in Iraq

WASHINGTON - A criminal complaint unsealed in federal court in Washington on Wednesday alleges a web of corruption and bid rigging in Iraq by officials who worked with the now-defunct Coalition Provisional Authority, the U.S.-led agency that ran Iraq for more than a year after the 2003 invasion.

The complaint accuses an American-Romanian businessman, Philip H. Bloom, of paying officials from the coalition’s south-central region "bribes, kickbacks and gratuities, amounting to at least $200,000 per month," in order to obtain reconstruction contracts through a bid-rigging scam.

According to the complaint, Bloom "conspired with United States government contract employees and military officials to obtain fraudulently government contracts."

http://tinyurl.com/bvfs4

[Wilms]

18. Yesterday, someone on DU asked about Paul Bremer's whereabouts.

[Amonester]

20. Easy: Switzerland, Caymans, Barbados, you know...

Every little place that rose up from one-hundred-eightieth-something to between fourth and tenth of the world's biggest financial "country" in the past 20 years or so...

(Just "guessing")

How many millions in $100 bills can such bags "carry?" (away...) :grr:

[joeunderdog]

19. Please, not now. We're busting some Welfare Mothers' heads.

Where are all the fiscal conservatives when you need them? Really? When did their lifelong ideology change, allowing them to pretend that this doesn't matter? This is effecting everyone's tax dollar and there's no way to deny it.

[donco6]

21. Bids? What Bids?

With all the no-bid contracts, I'm surprised there was even an opportunity for bid-rigging.

[Amonester]

22. Don't be surprised: the Treasury Looters know LOTS of tricks...

Money for Nothing
By Philip Giraldi, American Conservative 24/10/05

http://www.ocnus.net/artman/publish/article_21191.shtml

See? MSM? (I mean: PRIME TIME...)

[underpants]

35. In one month they made the Oil-for-Food problems look like nothing

It's like they were just waiting and ready to get in there and be corrupt....like they had practiced for it.

THIS is about the only planning that was done for post war Iraq.

[Wordie]

23. Maybe it works to the Republican's advantage to get this many corruption

scandals all running at once...it's harder to keep track of them that way.

I tell you, my head is spinning with all this stuff! LOL

[Desperadoe]

24. My guess is the Neocons are setting up Bremer

Neocons have to discredit Bremer in order to keep their number one man Chalabi(Neocon Buddy) from going down since Bremer (Bush Buddy) has the goods on him.

The Neocons are desperate to keep Chalabi in the top slot or they know that he has the info on them that could put them in jail and he's threatening to use it if he doesn't get his way.

Chalabi has always used bribery and extortion to get his way and he's now using on the Neocons. Maybe he has the oil for food receipts that would have implicated US oil execs and the Neocon enablers since that was the real reason the Cons had to invade.

[Pirate Smile]

25. NYT: American Faces Charge of Graft for Work in Iraq

By JAMES GLANZ
Published: November 17, 2005

In what is expected to be the first of a series of criminal charges against officials and contractors overseeing the rebuilding of Iraq, an American has been charged with paying hundreds of thousands of dollars in bribes and kickbacks to American occupation authorities and their spouses to obtain construction contracts, according to a complaint unsealed late yesterday.

The man, Philip H. Bloom, who controlled three companies that did work in Iraq in the multibillion-dollar reconstruction effort, was charged with conspiracy, wire fraud, conspiracy to launder money and interstate transportation of stolen property, all in connection with obtaining up to $3.5 million in reportedly fraudulent contracts.

The complaint, unsealed in the Federal District Court of the District of Columbia, also cites two unnamed co-conspirators who worked in the Coalition Provisional Authority, the American administration that governed Iraq when the contracts were awarded in early 2004. These were the officials who, with their spouses, allegedly received the payments.

"This is the first case, but it won't be the last," said Jim Mitchell, a spokesman for the Special Inspector General for Iraq Reconstruction, an independent office. Mr. Mitchell said as many as a dozen related cases had been referred to the Justice Department for possible prosecution.

http://www.nytimes.com/2005/11/17/international/middleeast/17reconstruct.html?hp&ex=1132203600&en=d3e36ef4166a353d&ei=5094&partner=homepage

[Pirate Smile]

26. When it rains, it pours. Here's more:

"The charges are likely to fuel further criticisms of the rebuilding effort in Iraq, which has largely failed to live up to the hopes of United States officials. Large amounts of the money appropriated for rebuilding have been spent on securing projects and repairing sabotage, both results of insurgent activity. The effort has also been criticized for failing to take into account the problems faced by any building project in Iraq, including the difficulty of visiting project sites."

[spindrifter]

27. Can anyone access the indictment on PACE

or some other electronic format? It's troubling that the only complaint, so far, is the guy that paid the bribe. I venture to say that the people who took the bribes are actually the more serious crooks--and it isn't clear whether they were Americans or not.

[napi21]

28. Who filed this complaint? I'm not surprised, because I believe it's true,

but WHO filed the complaint???

[Erika]

29. Our tax dollars redistributed via W

Take the money from American taxpayers and give it to W's corporatist global friends. Surprise, Surprise.

But that's what this "war" was all about.

[shanti]

30. the dam has most definitely burst

and they are cornered. :hide:

[spancks]

31. American Faces Charge of Graft for Work in Iraq

New York Times

By JAMES GLANZ
Published: November 17, 2005

In what is expected to be the first of a series of criminal charges against officials and contractors overseeing the rebuilding of Iraq, an American has been charged with paying hundreds of thousands of dollars in bribes and kickbacks to American occupation authorities and their spouses to obtain construction contracts, according to a complaint unsealed late yesterday.

The man, Philip H. Bloom, who controlled three companies that did work in Iraq in the multibillion-dollar reconstruction effort, was charged with conspiracy, wire fraud, conspiracy to launder money and interstate transportation of stolen property, all in connection with obtaining up to $3.5 million in reportedly fraudulent contracts.

(snip)



Anybody want to start a pool on how far up the food chain this will go?

[salin]

32. will stop long before Halliburton...

[jamesinca]

33. Who is Phillip H. Bloom

That is my first question. What is his crony connection to this administration? I don't think it is anything beyond that. He is dirty and he was given the contract because he is a Republican, probably a ranger or pioneer for Bush.

Graft: The act of taking advantage of one's position to gain money, property, etc. dishonestly, as in politics. Anything acquired by such illegal methods, such as an illicit profit form government business.

[xchrom]

34. the redistribution of wealth republican style.

[ninkasi]

36. Like everything else the Republicans have handled

this stinks to high Heaven of corruption. I'm reading this, seething, thinking about the elderly who must choose between staying warm or buying food and medicine this winter; I think about school children, trying to learn when their stomachs are empty, and Republicans want to balance the budget by cutting out money for their lunches; I think about the families who are struggling harder, and getting further behind, due to Bush's handling of the economy.

I think, too, of the men and women who have died to keep this corruption going, and the ones who come home minus limbs, whose lives will never be the same, and who will have to struggle for every cent paid for their rehabilitation, and who see their benefits cut.

I am too depressed to even get into how the poor of New Orleans, and the others who suffered due to Katrina, and Rita, and Wilma, are still trying to rebuild their shattered lives. I hope that every person who voted for this evil little man, and the venal, corrupt, members of the Republican party who have joyfully slashed taxes for the rich and taken from the poor, I hope every Bush supporter sees, and understands, what their votes have brought us.

[Javaman]

37. Iraqi business, mafia style...

As I read all these stories about graft, money laundering, missing money, etc, I can't help but having the comparison of Mafia style business dealings pop into my head.
What needs to be looked into is the personal lives of these "heads of industry" and see how their income and lifestyles have changed since the beginning of the war...

Excuse me, mr. cement contractor, how come before the war you were only able to barely cover your overhead, have a two bedroom home and 2 family cars, but now you have a private villa, a company jet and a summer home in the Hampton's?

That's how they got Capone.