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Security firm charged with defrauding government for Iraq work

Custer Battles, a firm with $100 million in Iraqi security contracts, has been charged in a whistleblower lawsuit with repeatedly billing the occupation authorities for nonexistent services or at grossly inflated prices.

The Pentagon is concerned by these allegations and has barred Custer Battles from receiving further military contracts It has also withheld at least $10 million in payments to the company. The company is appealing the ban.

The New York Times story appeared on October 23, 2004 (subscription required).

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