Finally: U.S. Contractor Found Liable for Fraud in Iraq

"WASHINGTON — In the first action of its kind, a federal jury on Thursday found that a private security firm(Custer Battles, LLC) had bilked the U.S.-led interim government in Iraq out of millions of dollars.

The False Claims Act allows the Justice Department to join whistle-blowers in the prosecution of cases. But in this case, government attorneys did not intervene. Grayson, the lawyer for Isakson and Baldwin, attributed the decision to political considerations. Battles ran as a Republican candidate for Congress in 2002, and Custer boasted of the company's ties to the administration."

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