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ABCs of the Custer Battles Scandal

Posted by David Phinney on March 10th, 2006

Here are some answers to some common questions about the Custer Battles federal contract fraud trial and its aftermath:

1. Why didn't the US Justice Department join in the Custer Battles lawsuit?

The plaintiffs invited them. After investigating under closed seal, the department decided against it. BUT, I did notice a Justice official sitting in the courtroom quietly taking copious notes on the proceedings.


2. Will there be criminal prosecution of Michael Battles and Scott Custer now that they have been found guilty of fraud in a federal civil case?

The plaintiffs' attorney Alan Grayson thinks not: "This is a huge embarrassment for the administration and they don't want to do anything to publicize it," Grayson said. "It's just another example of corruption and fraud that the administration does nothing about and willingly participates in. The Bush administration had people running around lining up contracts for contractors who turned out to be people who stole millions upon millions from the taxpayer."

3. Because Custer Battles was largely paid with seized Iraqi Assets, will Iraq be entitled to any or all of the damages?

No. It is considered war booty and property of the invading forces.