Feds charge Army officer, 2 others in fraud scheme

AP News
|
Posted: Aug 22, 2012 6:52 PM
Feds charge Army officer, 2 others in fraud scheme

SALT LAKE CITY (AP) — An Army Reserve lieutenant colonel and two former Special Forces soldiers have been indicted in a multimillion-dollar fraud scheme to win military contracts in Afghanistan.

U.S. Attorney David Barlow announced the 72-count indictment on Wednesday in Salt Lake City.

Barlow says the Army Reservist was a procurement official who leaked bid information that allowed all three men to pocket $20 million from a series of contracts totaling $54 million. The contracts were meant to supply Afghan troops with training.

Authorities say Michael L. Taylor formed the Massachusetts-based firm, American International Security Corp., which was awarded the contracts.

Taylor's attorney, Steven Brooks, says his client denies wrongdoing and notes the company delivered on the services.

Authorities say they have seized 20 houses in four states from the defendants, among other things.