Guilty Plea in KBR (Formerly Halliburton) $13 Million Contract Iraq Kickback Case

July 16, 2007

From The New York Times, 7/14/07:

Guilty Plea in Iraq Kickback Case

By THE NEW YORK TIMES

An American who worked for a Halliburton subsidiary pleaded guilty

yesterday to receiving kickbacks in exchange for awarding a Kuwaiti

company nearly $13 million in contracts to supply the American

military with semi-tractor-trailers, refrigeration trailers and fuel

tankers in Iraq and Kuwait in 2003.

The employee, Roger A. Heaton, 58, of Houston, worked for the

subsidiary, KBR, as part of a logistics contract.

KBR, formerly known as Kellogg, Brown & Root, was a subsidiary of

Halliburton until it became a separate entity earlier this year.

The contract has so far paid the companies $20 billion to supply the

military with food, fuel, housing and other necessities.

Mr. Heaton pleaded guilty in Federal District Court in the Central

District of Illinois to awarding two major contracts in exchange for

what was to have been over $200,000 in kickbacks, although it is

unclear how much of the money he actually received.

Heather L. Browne, a spokeswoman for KBR, said in a statement that the

company had been cooperating with government investigators since its

employees began to work in Iraq.

The Justice Department said that Mr. Heaton could receive a maximum

penalty of 10 years in prison and a $250,000 fine.

The Army recently restructured the contract and awarded parts of it to

KBR and three other companies.

_______________________________________________

Harry

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