FRAUD Supreme Foodservice FZE, a privately-held United Arab Emirates (UAE) company

http://www.justice.gov/opa/pr/defense-contractor-pleads-guilty-major-fraud-provision-supplies-us-troops-afghanistan

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Monday, December 8, 2014

Defense Contractor Pleads Guilty to Major Fraud in Provision of Supplies to U.S. Troops in Afghanistan

Supreme Foodservice GmbH, a privately held Swiss company, and Supreme Foodservice FZE, a privately-held United Arab Emirates (UAE) company, pleaded guilty today to major fraud against the United States and agreed to resolve civil violations of the False Claims Act, in connection with a contract to provide food and water to the U.S. troops serving in Afghanistan, the Justice Department announced today.  The companies pleaded guilty in the Eastern District of Pennsylvania (EDPA) and paid $288.36 million in the criminal case, a sum that includes the maximum criminal fine allowed. 

In addition, Supreme Group B.V. and several of its subsidiaries have agreed to pay an additional $146 million to resolve a related civil lawsuit, as well as two separate civil matters, alleging false billings to the Department of Defense (DoD) for fuel and transporting cargo to American soldiers in Afghanistan.  The lawsuit was filed in the EDPA, and the fuel and transportation allegations were investigated by the Southern District of Illinois and the Eastern District of Virginia, respectively, along with the Department’s Civil Division. 

“The civil resolutions and agreements reflect the Justice Department’s continuing efforts to hold accountable contractors that have engaged in war profiteering,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division.  “The department will pursue contractors that knowingly seek taxpayer funds to which they are not entitled.”

“These companies chose to commit their fraud in connection with a contract to supply food and water to our nation’s fighting men and women serving in Afghanistan,” said U.S. Attorney Zane David Memeger for the Eastern District of Pennsylvania.  “That kind of conduct is repugnant, and we will use every available resource to punish such illegal war profiteering.” 

The Criminal Fraud

In 2005, Supreme Foodservice AG, now called Supreme Foodservice GmbH, entered into a contract with the Defense Supply Center of Philadelphia (DSCP, now called Defense Logistics Agency – Troop Support) to provide food and water for the U.S. forces serving in Afghanistan.  According to court documents, between July 2005 and April 2009, Supreme Foodservice AG, together with Supreme Foodservice KG, now called Supreme Foodservice FZE, devised and implemented a scheme to overcharge the United States in order to make profits over and above those provided in the $8.8 billion subsistence prime vendor (SPV) contract.  The companies fraudulently inflated the price charged for local market ready goods (LMR) and bottled water sold to the United States under the SPV contract.  The Supreme companies did this by using a UAE company it controlled, Jamal Ahli Foods Co. LLC (JAFCO), as a middleman to mark up prices for fresh fruits and vegetables and other locally-produced products sold to the U.S. government, and to obscure the inflated price the Supreme companies were charging for bottled water.  The fraud resulted in a loss to the government of $48 million.  

Supreme AG, Supreme FZE and Supreme’s owners (referred to in court documents as Supreme Owners #1 and #2) made concentrated efforts to conceal Supreme’s true relationship with JAFCO, and to make JAFCO appear to be an independent company.  They also took steps to make JAFCO’s mark-up on LMR look legitimate, and persisted in the fraudulent mark-ups even in the face of questions from DSCP about the pricing of LMR. 

Even though the SPV contract stated that the Supreme food companies should charge the government the supplier’s price for the goods, emails between executives at the companies (referred to as Supreme Executive #1, #2, etc) reveal the companies’ deliberate decision to inflate the prices. Among other things, Supreme Owner #1 increased the mark-up that JAFCO would impose on non-alcoholic beer from 25 percent to 125 percent.  On or about Feb. 16, 2006, during a discussion about supplying a new product to the U.S. government, one Supreme executive wrote to another, “I am very sure the best option is to buy it from Germany and mark up via [JAFCO], like [non-alcoholic] beer.”

In early March 2006, after a DSCP contracting officer told the Supreme food companies that she wanted to see a manufacturer’s invoice for specific frozen products, Supreme Foodservice GmbH lowered its prices for those products to prices that did not include a JAFCO mark-up.  On March 14, 2006, instead of disclosing that the initial pricing had included a mark-up, a Supreme executive misled the DSCP representative by saying, “Based on more realistic quantities, we have been able to negotiate a better price,” to explain the change in pricing. 

In June 2006, when a DSCP contracting officer raised questions about pricing focusing on four specific items, Supreme executives again misled the DSCP, claiming that the high prices were for a high quality of product, and offering to sell lower quality products for lower prices.  Supreme Foodservice GmbH did this even after analyzing its JAFCO margin on the four items in question and finding its profit margins were between 41 and 56 percent.

In September 2007, after a fired Supreme executive threatened to tell the DSCP about the fraud, his former employer entered into negotiation of a “separation agreement” with that executive to induce that executive not to disclose the ways in which the Supreme food companies were overcharging the DSCP.  The agreement stated that the executive would receive, among other things, a payment of 400,000 euros in September 2010, provided that the executive did not cause: a deterioration in the economic situation linked to the SPV contract; the termination of the SPV contract; or a decrease in the price levels for products, specifically including LMR and bottled water provided to the U.S. government.   

Defendant Supreme GmbH pleaded guilty to major fraud against the United States, conspiracy to commit major fraud and wire fraud.  Supreme FZE, which owns JAFCO, pleaded guilty to major fraud against the United States.  The Supreme companies agreed to jointly pay $48 million in restitution and $10 million in criminal forfeiture.  Each company also agreed to pay $96 million in criminal fines.  In addition, as a result of the criminal investigation, the Supreme companies paid $38.3 million directly to the DSCP as a refund for separate overpayments on bottled water.

The Civil Settlements

In a related civil settlement, Supreme Group agreed to pay another $101 million to settle a whistleblower lawsuit, filed in the U.S. District Court for the EDPA by a former executive, which alleged that Supreme Group, and its food subsidiaries, violated the False Claims Act by knowingly overcharging for supplying food and water under the SPV contract.  The payment also resolves claims that, from June 2005 to December 2010, the Supreme food companies failed to disclose and pass through to the government rebates and discounts it obtained from its suppliers, as required by its SPV contract with the United States.

“Today’s results are part of an ongoing effort by the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense's acquisition process from personal and corporate greed,” said Deputy Inspector General for Investigations James B. Burch for the U.S. Department of Defense’s Office of the Inspector General.  “The Defense Criminal Investigative Service will continue to pursue allegations of fraud and corruption that puts the Warfighter at risk.”

“We are very pleased with this resolution, and are gratified that the public can now see what we've been aggressively investigating,” said Director Frank Robey of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit (MPFU).  “Companies that do business with the government must comply with all of their obligations, and if they overcharge for supplying our men and women in uniform who are bravely serving this nation, they must be held accountable for their actions.”

Separately, Supreme Site Services GmbH, a Supreme Group subsidiary, agreed to pay $20 million to settle allegations that they overbilled for fuel purchased by the Defense Logistics Agency (DLA) for Kandahar Air Field (KAF) in Afghanistan under a NATO Basic Ordering Agreement.  The government alleged that Supreme Site Services’ drivers were stealing fuel destined for KAF generators while en route for which the company falsely billed DLA.

“It is important that government contractors supporting conflicts abroad be held accountable for their billings to the government,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia.  “The DoD investigating components are instrumental in protecting the interests of the government, and their efforts in this investigation are to be commended.”

Supreme Group’s subsidiary Supreme Logistics FZE also has agreed to pay $25 million to resolve alleged false billings by Supreme Logistics in connection with shipping contracts between the U.S. Transportation Command (USTRANSCOM), located at Scott Air Force Base in Illinois, and various shipping carriers to transport food to U.S. troops in Afghanistan during Operation Enduring Freedom.  The shipping carriers transported cargo destined for U.S. troops from the United States to Latvia or other intermediate ports, and then arranged with logistics vendors, including Supreme Logistics, to carry the cargo the rest of the way to Afghanistan.  The United States alleged that Supreme Logistics falsely billed USTRANSCOM for higher-priced refrigerated trucks when it actually used lower-priced non-refrigerated trucks to transport the cargo. 

“The U.S. Attorney’s Office for the Southern District of Illinois is committed to protecting the integrity of all of the vital missions carried out at Scott Air Force Base, including the mission of the U.S. Transportation Command,” said U.S. Attorney Stephen R. Wigginton for the Southern District of Illinois.  “These vital services carried out by the brave men and women of the armed forces of the United States deserve, and will receive, our full support, and this office will do everything possible to protect their missions.”

“These settlements are victories for American taxpayers,” said Special Inspector General John F. Sopko for Afghanistan Reconstruction.  “It sends a clear signal that whether a case involves a mom and pop outfit or a major multinational corporation, we will work tirelessly with our investigative partners to pursue justice any time U.S. dollars supporting the mission in Afghanistan are misused.”

The EDPA lawsuit was initially filed under the qui tam or whistleblower provisions of the False Claims Act, by Michael Epp, Supreme GmbH’s former Director, Commercial Division and Supply Chain.  The False Claims Act prohibits the submission of false claims for government money or property and allows the United States to recover treble damages and penalties for a violation.  Under the Act’s whistleblower provisions, a private party may file suit on behalf of the United States and share in any recovery.  The case remained under seal to permit the United States to investigate the allegations and decide whether to intervene and take over the case.  Epp will receive $16.16 million as his share of the government’s settlement of the lawsuit.

The criminal and civil matters in the EDPA were the result of a coordinated effort by the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Eastern District of Pennsylvania, DCIS, U.S. Army’s Criminal Investigative Command’s MPFU and the FBI. 

The investigation of Supreme Site Services ’ alleged false billings for fuel was conducted by the Civil Division and the U.S. Attorney’s Office for the Eastern District of Virginia, and the investigation of Supreme Logistics’ alleged false invoices for transportation was handled by the Civil Division and the U.S. Attorney’s Office for the Southern District of Illinois.  Both matters were investigated by the Defense Contract Audit Agency Office of Investigative Support, the Army Audit Agency, the International Contract Corruption Task Force, the U.S. Army’s Criminal Investigative Command’s Major Procurement Fraud Unit, the DoD Office of Inspector General’s DCIS, the Special Inspector General for Afghan Reconstruction, the U.S. Air Force Office of Special Investigations and the Naval Criminal Investigative Service.

The claims resolved by the civil settlements are allegations only, except for the conduct for which the Supreme food companies have pleaded guilty.  

14-1372

Civil Division

Agrees To Pay $434 Million in Criminal Penalties and to Settle False Claims Act Allegations

supreme Foodservice GmbH, a privately held Swiss company, and Supreme Foodservice FZE, a privately-held United Arab Emirates (UAE) company, pleaded guilty

upreme Foodservice GmbH, a privately held Swiss company, and Supreme Foodservice FZE, a privately-held United Arab Emirates (UAE) company, pleaded guilty http://www.justice.gov/opa/pr/defense-contractor-pleads-guilty-major-fraud-provision-supplies-us-troops-afghanistan

USA Fraud List

http://www.sigar.mil/investigations/criminalcases/index.aspx?SSR=3&SubSSR=20&WP=Criminal%20Cases

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Recent Criminal Cases

October 1, 2014 - December 31, 2014

Subject	Action	Investigative Activity
Supreme Logistics FZE	$25 Million Civil Settlement	Investigation Results in $25 Million Civil Settlement  On December 5, 2014, a settlement agreement was entered into between the United States, acting through the U.S. Department of Justice and the United States Attorney’s Office for the Southern District of Illinois on behalf of U.S. Transportation Command (USTRANSCOM) and Supreme Logistics FZE (Supreme), a third-party logistics provider for international transport of goods. According to the terms and conditions of the agreement, Supreme will pay $25 million to the United States.  An investigation was initiated because of allegations made against Supreme pertaining to the transportation of cargo to and from Afghanistan. Evidence revealed that Supreme submitted false claims causing the prime contractors to overcharge the U.S. government for refrigerated containers when using dry good containers. Additionally, Supreme split shipments and then charged the U.S. government for excess transportation costs; diverted containers to less expensive routes without adjusting invoice costs and charged the U.S. government for container shipping costs when the containers were never shipped.
Supreme Site Services Gmbh	$20 Million Civil Settlement	Investigation Results in $20 Million Civil Settlement  On December 8, 2014, in the Eastern District of Virginia, Supreme Site Services Gmbh (Supreme) agreed to pay $20 million to settle allegations of over-billing for fuel purchased by the Defense Logistics Agency (DLA) at KAF under the NATO Basic Ordering Agreement. The case involved drivers employed by Supreme who stole fuel destined for KAF generators.  An investigation was initiated upon receipt of information from Task Force 2010, Kandahar Detachment (TF2010 KAF) that an employee of Supreme had reported a significant amount of diesel fuel was being pilfered by Supreme drivers and later sold to customers at various locations on KAF.  The investigation focused on calculating the amount of fuel delivered to the generators at KAF by Supreme during a specific period. Supreme delivery tickets were compared to historical consumption data maintained on computers housed within the generators on KAF. Investigative analysis revealed Supreme billed for more fuel than was delivered as evidenced by the generators and their burn capacity. The difference between the amount of fuel actually delivered and what Supreme billed for was calculated and used as a basis for the loss.
Maersk Line, Limited	$8.7 Million Civil Settlement	Investigation Results in $8.7 Million Civil Settlement  On October 30, 2014, a settlement agreement was entered into between the United States, acting through the U.S. Department of Justice on behalf of DOD, USTRANSCOM, and Maersk Line, Limited (Maersk), a global transportation and logistics company. According to the terms and conditions of the agreement, Maersk will pay $8.7 million to the United States for an alleged failure of performance associated with a USTRANSCOM contract and alleged noncompliant shipments to military outposts in Afghanistan.  In April 2012, SIGAR and the International Contract Corruption Task Force(ICCTF) initiated an investigation at Camp Leatherneck (CLN), Afghanistan, after information surfaced regarding the theft of 38 shipping containers and their contents from CLN and Forward Operating Base (FOB) Shindand in Afghanistan. The containers belonged to American President Lines, LTD (APL) and Maersk. The investigation revealed there were numerous false proof of delivery (POD) documents associated with each missing container, which allowed the contractors to be paid as if the containers reached their ultimate destination.  The investigation discovered numerous other missing containers belonging to APL and that Maersk may have had falsified PODs submitted for various locations throughout Afghanistan. In August 2012, the investigation of the container theft was combined with an ongoing civil investigation being conducted jointly by the U.S. Army Criminal Investigation Command (CID), U.S, Air Force Office of Special Investigations (AFOSI), and Defense Criminal Investigative Services (DCIS) in the Southern District of Illinois for the purpose of settlement negotiations with APL and Maersk.  As previously reported, in January 2013, a settlement agreement was entered into between the United States, USTRANSCOM, and APL. As a result of the settlement APL paid $4.25 million to the United States government.
Unity Logistics and Supply Services	$806,000 Recovery	Investigation Results in $806,000 Recovery for the U.S. Government  On October 04, 2014, Defense Finance and Accounting Services (DFAS) notified SIGAR that DFAS completed an $806,672 debt collection process with an Afghan company, Unity Logistics and Supply Services (Unity), and collected the full amount of debt pursuant to a recent investigation.  The investigation was initiated in November 2012 when the Kandahar Airfield (KAF) U.S. Army Regional Support Group reported that Unity was drawing fuel from the KAF fuel depot based upon U.S. government contracts that did not allow access to fuel. The investigation uncovered that Unity contractors had misappropriated U.S. government fuel and meal cards at KAF by using letters of authorization relative to a contract at another base as credentials.  A search warrant of the Unity office at KAF discovered 72 improperly issued meal cards and ten improperly issued fuel cards. Based on the findings, the estimated potential loss to the U.S. government is nearly $1 million.  On October 20, 2013, the Regional Contracting Center-South issued Unity a Debt Collection Demand Letter to remit $806,672 to the U.S. government, pursuant to the investigation. The debt collection process continued until September 2014 when the complete debt of $806,672 was finally collected.
Awrish Builders	$403,000 Savings	$403,000 Savings to the U.S. Government  On November 26, 2014, a determination was made to deny payment to an Afghan construction company because of falsified invoices, representing a savings of over $403,000 to the U.S. government.  In January 2011, USACE awarded a $12.7 million contract to Awrish Builders to build troop housing at KAF. The contract was later terminated for convenience by USACE. After the contract was terminated, Defense Contract Audit Agency (DCAA) discovered two identical invoices reflecting two different dollar amounts.  In February 2014, DCAA contacted the U.S. Army CID Major Procurement Fraud Unit (MPFU) assigned to KAF regarding the invoices discovered in their audit. MPFU notified the ICCTF and SIGAR agreed to assist with the investigation.  Based on the findings of the investigation and the DCAA audit, the USACE contracting officer made the determination it would not pay the questionable invoices.
U. S. Army Specialist Alexander Swim	Conviction	Former U.S. Military Member Pleads Guilty to Fuel Theft Scheme  On October 6, 2014, in the Eastern District of North Carolina, U.S. Army Specialist, Alexander Swim pled guilty to theft and conversion of public property and aiding and abetting. In addition, Swim will be subject to forfeiture of assets.  From January until October 2012, Swim was deployed to Afghanistan under the Combined Joint Special Operations Task Force (CJSOTF) at FOB Sharana. Swim served as an advanced operating base mechanic with responsibility for overseeing the maintenance of vehicles and the distribution of fuel to special operations forces. On multiple occasions during his deployment, Swim participated in a conspiracy to steal government-appropriated fuel from FOB Sharana by escorting Afghan national-operated fuel trucks onto the installation to be loaded with fuel, and then escorting them back off the base. Because of Swim’s actions, the U.S. government suffered a loss of over $400,000 in stolen fuel.  Swim is scheduled to be sentenced on January 6, 2015.
U.S. Army Sergeant First Class Cleo Autry; U.S. Army Sergeant First Class Jeffrey Arthur Cook; U.S. Army Sergeant First Class Deric Harper	Conviction	Three U.S. Military Members Plead Guilty to Embezzlement Scheme  On October 6, 2014, in the Eastern District of North Carolina, U.S. Army Sergeant First Class (SFC) Cleo Autry, SFC Deric Harper, and SFC Jeffrey Arthur Cook each pled guilty to one count of theft of government property and conspiracy.  Between October 2008 and April 2012, the subjects of the investigation were deployed with the Special Forces Group under the CJSOTF at FOB Jalalabad in Afghanistan. During their deployment, they conspired to embezzle funds from the Commanders Emergency Response Program and from funds used by Special Forces Groups to support counter-terrorism operations. Over time, they stole cash, purchased a substantial number of $1,000 money orders, and sent the funds to their spouses, to electronic bank accounts, or to various vendors.  The three individuals are scheduled to be sentenced in January 2015.
Enmanuel Lugo	Conviction	Former U.S. Army Sergeant Pleads Guilty to Bribery Scheme  On November 19, 2014, in the Eastern District of North Carolina, Enmanuel Lugo pled guilty to charges of bribery and conspiracy pertaining to his involvement in a theft scheme to sell government-appropriated fuel in July 2011.  On October 22, 2014, Enmanuel Lugo relinquished $28,700 in U.S. currency to federal agents during a formal proffer session conducted at the offices of the Department of Justice in Washington, DC. According to Lugo, these funds were part of the proceeds gained from his illegal activities. The money was transported by SIGAR and FBI agents to a local bank where it was exchanged for a cashier's check made payable to the U.S. Marshal's Service.  The investigation was based on allegations that Lugo and co-conspirators collaborated to falsify Transportation Movement Requests (TMRs) to facilitate the theft of fuel at KAF that they sold on the black market in neighboring towns in return for cash payments. The overall loss to the U.S. government because of this illegal scheme is approximately $10 million.
BNN Logistics	$10 Million Savings	$10 Million Savings to the U.S. Government  On October 4, 2014, the Bagram Airfield (BAF) Contracting Officer reported that a SIGAR investigation resulted in a cost saving to the U.S. government of $10 million. The savings related to two contracts with BNN Logistics (BNN), a large-scale Afghan trucking company that transports bulk material for the U.S. government at BAF.  During the summer of 2013, CENTCOM Joint Theater Support Contracting Command (C-JTSCC) ordered that all TMRs be administratively closed for work not performed on contracts. Since the work was no longer needed, no payment was made to the contractors. Aperiod of time was allocated for the contractors to submit their TMRs for work performed on contracts prior to the C-JTSCC order. C-JTSCC had a meeting to explain this process and subsequently BNN submitted TMRs for administrative closure during the allocated time in 2013.  During August 2014, BNN submitted two binders of TMRs to the C-JTSCC for payment, some of which were similar to the ones BNN submitted for closure in 2013. SIGAR explained to BNN that it was suspicious that BNN submitted TMRs approximately a year after the C-JTSCC order, and at a time when new Contracting Officer's Representatives (CORs) were in a transition period. SIGAR recommended that BNN contact the COR to discuss what charges to the government would be acceptable for their work not previously reimbursed and then adjust the TMRs accordingly.  BNN and the COR came to a mutual agreement and subsequently BNN resubmitted TMRs at a significantly lower rate.
Robert Bertolini	Sentencing	U.S. Contractor Sentenced for Bribery Scheme  On December 15, 2014, in the District of Arizona, Robert Bertolini was sentenced to three months of imprisonment followed by seven months of home detention, three years of probation upon release, and forfeiture of $59,975 to the U.S. government. In July 2014, Bertolini, a former employee of Lakeshore Engineering Services, Inc. (LES), a subsidiary of Lakeshore Toltest Corporation, pled guilty to one count of conspiracy to commit wire fraud and receive an illegal kickback.  In December 2010, USACE awarded a contract to LES to design and construct FOB Rocco for the ANA in Kabul, Afghanistan. LES hired Bertolini to be the FOB Rocco project manager and in March 2011, LES contracted with Shams Group International (Shams) to provide materials, labor, and other services.  In May 2011, without approval from LES, Bertolini approved two modifications to Shams’ contract, increasing its value by over $1 million. Following the approval, Shams wired approximately $59,975 to a bank account owned by Bertolini's son in Ohio.  Bertolini will report to the Bureau of Prisons on February 10, 2015.
George E . Green	Indictment	U.S. Contractor Indicted for Fraud  On December 16, 2014, in the Eastern District of Texas, George E. Green was arrested subsequent to a five count federal indictment for violations of conspiracy to commit wire fraud and structuring financial transactions.  The investigation was initiated after USAID received allegations that Green, an employee of International Relief Development (IRD), had solicited and received kickbacks in exchange for contract awards for the USAID Southern Regional Agriculture Development (SRAD) program, with a contract value of $65 million. An Afghan employee of IRD wired $20,000 to Green’s U.S. bank account and several Afghan contractors wired $25,000 to Green’s bank account and to an antique auto dealer in Italy. Green bought $16,000 in jewelry in Dubai as a means to launder money and he arranged for his wife to transport over $30,000 to the United States from Italy upon her return from their vacation together.
Timothy Maurer	Conviction	U.S. Contractor Pleads Guilty to Theft of U.S. Government Property  On December 12, 2014, in the Northern District of Illinois, Timothy Maurer, a former Raytheon employee, pled guilty to a criminal information charging him with theft of government property.  The investigation was initiated following reports of systemic theft of U.S. government-owned computer equipment at Shindand Air Base during 2013 and 2014. Evidence revealed that Maurer shipped 11 packages containing stolen computer equipment to individuals residing in the U.S. who were later determined to be eBay re-sellers. Maurer admitted to stealing over $200,000 worth of equipment.
U.S. Army Staff Sergeant Luis Casellas	Arrest and Indictment	U.S. Military Member Arrested and Indicted  On December 3, 2014, in the District of Puerto Rico, U.S. Army Staff Sergeant Luis Casellas was indicted on charges of bulk cash smuggling, false statements, theft of government property, smuggling goods into the U.S., and wire fraud. Casellas was arrested on December 4, 2014, with assistance from a FBI SWAT Team.  On August 16, 2013, at the Customs and Border Protection (CBP) United Parcel Service (UPS) hub facility in Louisville, Kentucky, CBP officers interdicted $41,750 from a parcel originating from KAF, Afghanistan. The parcel was sent by Casellas to his spouse in Puerto Rico. On August 21, 2013, CBP interdicted a second parcel sent by Casellas with an additional $20,800 concealed in equipment items contained inside. The investigation uncovered that the equipment was stolen property belonging to the U.S. Military Logistics Civil Augmentation Program (LOGCAP) in Afghanistan.  In September 2013, FBI San Juan, Puerto Rico, responded to the law offices of a private attorney representing an anonymous source who wanted to turn in $46,500 in abandoned currency and items from Afghanistan. Upon recovering the abandoned cash and items from the attorney, the FBI discovered the tools were marked with LOGCAP numbers and passed the information onto agents at KAF. The items were stolen U.S. government- owned property and the theft was traced back to Casellas. In addition to stealing approximately $115,000 in currency and materials, Casellas received Overseas Housing Allowance payments from the Army as he fraudulently claimed he was paying rent and utilities for a residence owned by his wife. The fraud constitutes a $96,950 loss to the U.S. government.
	$103,000 Recovery	$103,000 U.S. Government Property Recovered  On February 14, 2014, ATL, a National Afghan Trucking (NAT) carrier, while hauling an armored pickup truck from Camp Phoenix, Kabul, to Gardez, Paktiya, was detained at a National Directorate of Security (NDS) checkpoint. NDS officials seized the truck after discovering the carrier did not have an armor license. Immediate efforts by the transportation company, the U.S. Army, and SIGAR, to take back possession of the vehicle were unproductive.  The vehicle was eventually located at the Kabul NDS logistics compound. After traveling to the compound and meeting with NDS officials on several occasions, SIGAR arranged for NDS to release the truck to a U.S. military contractor, SEK. On November 6, 2014, the truck, valued at $103,000, was released by NDS, and SEK took possession of it for return to its rightful owner.
U.S. Army Staff Sergeant Edward McElveen	Military Member Discharged	Military Member Discharged  U.S. Army Staff Sergeant Charles Edward McElveen was discharged from the U.S. Army under Chapter 10 of the Uniform Code of Military Justice in lieu of trial by court martial. McElveen was discharged “other than honorable” from the military for the sale and distribution of alcohol while deployed to Afghanistan from 2012 until 2013. McElveen also faces suspension and debarment proceedings.  The investigation was initiated upon receipt of allegations that Crystal Construction Company (CCC) filed false claims in connection with a contract to deliver 450 Alaska barriers to FOB Salerno during 2012. Additional information surfaced involving McElveen, the COR on the contract, who allegedly received kickbacks and wired the proceeds to family members in the United States. The investigation uncovered that McElveen and Desean Denny, a private contractor working at FOB Salerno, wired thousands of dollars back to the United States while in Afghanistan.  McElveen and Denny were interviewed and both confessed to the smuggling and distribution of alcohol while stationed at FOB Salerno. However, there was no evidence of kickbacks in connection to the CCC contract. Denny was terminated and suspension and debarment proceedings are pending. McElveen returned to the United States to face court martial proceedings involving the smuggling and distribution of alcohol.