Mr. Speaker, I yield myself as much time as I may consume. Mr. Speaker, I rise in support of H.R. 400, the War Profiteering Prevention Act of 2007. If a contractor in Iraq decides to engage in the corrupt business practice of overbilling…
Mr. Speaker, I yield myself as much time as I may consume.
Mr. Speaker, I rise in support of H.R. 400, the War Profiteering Prevention Act of 2007. If a contractor in Iraq decides to engage in the corrupt business practice of overbilling the U.S. military to maximize his profits, he will now face 20 years in a Federal prison cell and a fine of $1 million.
Those bad apples who defraud the American taxpayer must be held accountable, regardless of whether the sleazy, fraudulent practice occurred in the United States, Afghanistan, or Iraq. This is especially true when the
fraud relates to our military and reconstruction activities in Iraq and Afghanistan, because such schemes could directly harm our country's global war against terrorism.
Moreover, corruption by a handful of individuals who are ostensibly engaged in supporting our military and reconstruction efforts in Iraq and Afghanistan unfairly tarnishes the reputation of the many honorable military and civilian contractors, the overwhelming majority of whom risk their lives daily and professionally perform their duties.
Fortunately, according to the testimony of Stuart Bowen, Jr., the Special Inspector General for Iraq Reconstruction, most contractors are good apples, and the incidence of corruption within the U.S. reconstruction program constitutes a small component of the overall American financial contribution to Iraq's reconstruction.
These cases often require extensive investigative resources and documentation. Having to gather such evidence in a dangerous setting like Iraq or Afghanistan makes it difficult to build a successful criminal case.
Nevertheless, the U.S. Government has brought many successful prosecutions, and it will likely bring more. For example, Philip Bloom was sentenced earlier this year to 46 months in prison as a result of his scheme to defraud the Coalition Provisional Authority by rigging contract bids in excess of $8.6 million.
In addition, Robert Stein, the former Coalition Provisional Authority comptroller and funding officer, was sentenced to 9 years in prison earlier this year. He was prosecuted and convicted of funneling numerous contracts to Bloom in exchange for kickbacks and bribes. Overall, the Special Inspector General for Iraq Reconstruction has opened over 300 criminal and civil investigations, leading to 10 arrests, five persons indicted, five convicted, and two imprisoned. The Inspector General continues to work on 79 live investigations, and these investigations may involve one or more targets. Twenty-eight of these investigations are currently being prosecuted by the Department of Justice, 23 of these are criminal cases, and five are civil.
In short, this legislation creates a new crime with a maximum term of imprisonment of 20 years, which is double the existing crime of fraud against the government, and deservedly so.
I urge my colleagues to vote ``yes'' on H.R. 400.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, at this time I yield 5 minutes to the gentleman from Virginia (Mr. Tom Davis).
Mr. Speaker, I yield myself as much time as I may consume, and then I will turn and yield 30 seconds to Mr. Davis of Virginia. I will go ahead and respond as Mr. Davis is gathering his thoughts.
One of the concerns Mr. Davis raised was what if there was some inadvertent overpricing by a contractor based on a mistake and later went back and corrected it. My reading of the bill is that person wouldn't be prosecuted because there's a three-prong standard. First, you have to knowingly, materially overvalue goods or service with the intent to defraud. And the intent-to-defraud prong would not be met under the analogy or the example Mr. Davis gave because ``intent to defraud'' is a term of art which requires that the actor possesses the specific intent to cheat the government. And you would not have that element of the crime proven if you had inadvertent overpricing based on a mistake.
Now, it doesn't mean you may not have what he's concerned about, an overzealous prosecutor try to prosecute someone without having the prongs or the factual basis for it. We can ask the prosecutor from the Duke case what happens when you're overzealous in your prosecutions. But I believe under that particular example that person wouldn't be prosecuted.
However, before I yield to Mr. Davis, let me just say, he does have a great deal of experience dealing with Government reform issues as the ranking member and represents a lot of government employees. And so I certainly am empathetic to his concerns that perhaps his committee might have had some insight into this bill that was worth looking at.
Mr. Speaker, I yield 30 seconds to the gentleman from Virginia (Mr. Tom Davis).
Mr. Speaker, I yield myself as much time as I may consume and am prepared to yield back as we have no further speakers.
Mr. Speaker, this is a bipartisan bill. We agree on a bipartisan basis that when a corrupt contractor overbills our U.S. military, it rips off the taxpayers, it hurts our national security, and it unfairly stains the reputation of the many honorable military and civilian contractors who risk their lives every day and do a professional and honest job.
This bill appropriately says that if you plan on overbilling or ripping off the U.S. military in terms of these contracts to do reconstruction work or military-related work in Iraq or Afghanistan, you are going to be sitting in a prison cell for 20 years and you are going to pay a fine of $1 million. We think that is an appropriate message to accept in light of this problem. And I urge my colleagues on both sides of the aisle to vote ``yes'' on H.R. 400.
Mr. Speaker, I yield back the balance of my time.