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The administration's reluctance to prosecute has turned the Iraq occupation into a "free-fraud zone," says former CPA senior adviser Franklin Willis. After the fall of Baghdad, there was no Iraqi law because Saddam Hussein's regime was dead. But if no U.S. law applied either, then everything was permissible, says Willis.

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Former employees of RTI, a North Carolina company with a $167 million military contract to teach Iraqis about democracy, say the company failed in its task.

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