CEO Pleads Guilty to Stealing Iraqi Rebuilding Money

[L.A. BRONCOS FAN]

Robert J. Stein Jr. could not have been clearer about his feelings toward the American businessman who was receiving millions of dollars in contracts from Mr. Stein to build a major police academy and other reconstruction projects in Iraq.

"I love to give you money," Mr. Stein wrote in an e-mail message to the businessman, Philip H. Bloom, on Jan. 3, 2004, just as the United States was trying to ramp up its rebuilding program in Iraq.

As it turned out, Mr. Stein had the money to give. Despite a prior conviction on felony fraud that his Pentagon background check apparently missed, Mr. Stein was hired and put in charge of at least $82 million of reconstruction money in the south central Iraqi city of Hilla by the Coalition Provisional Authority, the American-led administration that was then running Iraq.

In United States District Court in Washington, court papers indicate, Mr. Stein will plead guilty today to conspiracy, bribery, money laundering, possession of a machine gun and being a felon in possession of firearms, for essentially giving millions of that money to Mr. Bloom, and taking millions more for himself. Mr. Stein used some of his stolen money, the papers say, to buy items as wildly diverse as grenade launchers, machine guns, a Lexus, "an interest in one Porsche," a Cessna airplane, two plots of real estate in Hope Mills, N.C., a Toshiba personal computer, 18 Breitling watches, a 6-carat diamond ring and a collection of silver dollars. The papers say that the ring of corruption was much wider than previously known, drawing at least seven Americans, including Mr. Stein, Mr. Bloom and five Army reserve officers, into what is portrayed as a maelstrom of greed, sex and gun-running at the heart of the American occupation of a conservative Muslim country.

Continues: http://www.nytimes.com/2006/02/02/in...in&oref=slogin