WASHINGTON, 5 February 2006 — In the first US corruption conviction relating to the occupation of Iraq, a former official pleaded guilty on Friday to stealing more than $2 million of reconstruction funds and taking more than $1 million worth of contract kickbacks in a deal with an American businessman. Robert Stein, 50, had a previous criminal record for fraud. It is unknown why this information did not surface in background checks before he was awarded a contract to work with the now disbanded Coalition Provisional Authority.
Stein pleaded guilty to five felony counts of conspiracy, money-laundering, bribery and the illegal possession of a machine gun and a handgun. The businessman, a US citizen identified as Philip Bloom, also faces federal conspiracy and money laundering charges. Five US Army reserve officers are also implicated, two of whom have been arrested.
Stein, 50, of Fayetteville, N.C., told the court that, in December 2003 while serving as the comptroller and funding officer for the CPA, he conspired to rig the bids on contracts being awarded by the CPA in order to steer contracts to a co-conspiring contractor. The value of the contracts awarded to Stein’s co-conspirator in Al Hillah exceeded $8 million. Stein faces a maximum penalty of 30 years in prison, a five-year term of supervised release, and a fine of $250,000. He presently remains in custody. A sentencing date has not yet been scheduled.
