PROSECUTION
of a former official of the U.S. occupation in Iraq is a welcome sign that
federal enforcement is catching up with corruption in the post war
reconstruction.
But the real shocker in the case of
fraud and conspiracy defendant Robert Stein of Fayetteville, N.C., is that he
was hired to handle $82 million in funds for Iraqi projects despite his 1996
federal felony conviction -- also for fraud. He was sentenced at that time to
serve eight months in prison and pay $45,000 in restitution
Prosecutors
say Stein's 2003-2004 stint with the Coalition Provisional Authority, then
running Iraq's civil affairs, put him in a position to take some $546,000 in
kickbacks from another newly arrested defendant, American expatriate Philip
Bloom. Stein allegedly steered $13 million in contracts to Bloom's businesses.
A poignant detail from the
prosecution affidavit is that Stein used $200 in bribe money to make a
restitution payment on his 1996 felony.
The charges, filed by a federal
task force in the first of possibly 50 criminal cases of funding abuses in the
war zone, dramatize inadequate oversight by the Bush administration of billions
of dollars in Iraq reconstruction contracts. A wary eye on the flow of U.S. and
Iraqi money for the work was especially crucial if it was to be entrusted to
hires with federal felonies on their resumes.