U.S. GOVERNMENT CONTRACTOR ARRESTED FOR PARTICIPATING IN SCHEME
TO STEAL FUEL FROM CAMP LIBERTY, BAGHDAD, IRAQ

MICHAEL J. GARCIA, the United States Attorney for the Southern District of New York, MARK J. MERSHON, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Brigadier General RODNEY L. JOHNSON, Commanding General of the United States Army, Criminal Investigation Command (“CID”), and SHARON E. WOODS the Director of the United States Department of Defense’s Defense Criminal Investigative Service (“DCIS”), announced the unsealing of a Superseding Indictment charging HARITH AL-JABAWI, a/k/a “Harry,” as well as United States Army Chief Warrant Officer, JOSEPH CRENSHAW, with participating in a scheme to steal fuel from Camp Liberty in Baghdad, Iraq. AL-JABAWI, 36, of the Bronx, New York, was arrested on July 6, 2008, at John F. Kennedy International Airport returning to the United States from Iraq by way of Jordan.

CRENSHAW, 38, of Watertown, New York, had been arrested on November 19, 2007, and charged in a previous Indictment filed on December 12, 2007.

According to the Superseding Indictment, the previously filed Indictment charging CRENSHAW, and a previously filed Complaint charging CRENSHAW:

In 2007, CRENSHAW was stationed in Baghdad, Iraq, as a Chief Warrant Officer with the U.S. Army. In April 2007, a cooperating witness (“CW-1”), began accepting cash from AL-JABAWI in exchange for accompanying AL-JABAWI to the fuel depot located at Camp Liberty in Baghdad, Iraq, to fill trucks with fuel. CW-1 knew that AL-JABAWI was not entitled to obtain fuel from the fuel depot, but that with the presence of uniformed, military personnel in AL-JABAWI’s truck, each of which was capable of holding thousands of gallons of fuel, AL-JABAWI would be able to obtain fuel. In exchange for bribes, CW-1 accompanied AL-JABAWI and his trucks to obtain fuel from the fuel depot on a number of occasions.

In May 2007, CW-1 told CRENSHAW about the fuel scheme and the amount of money he was earning by accompanying the trucks to the fuel depot. CW-1 then allowed CRENSHAW to participate in the scheme. CRENSHAW accompanied AL-JABAWI and his trucks several times to the fuel depot. In exchange for each of those runs, CW-1 paid CRENSHAW several thousand dollars.

AL-JABAWI and CRENSHAW are charged with conspiracy to bribe a public official. AL-JABAWI is also charged with making false statements to Department of Defense in order to gain access to U.S. military installations in Iraq. Each count carries a maximum sentence of five years’ imprisonment and a fine of the greater of $250,000, or twice the gross gain or loss from the offense.

AL-JABAWI was presented yesterday before United States Magistrate Judge DOUGLAS F. EATON and released on bail. He appeared today before United States District Judge JOHN F. KEENAN, before whom the charge against CRENSHAW is already pending. AL-JABAWI’s next scheduled appearance is September 4, 2008, before Judge KEENAN.

The National Procurement Fraud Initiative was announced by the Department of Justice in October 2006, and is designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in contracting activity for national security and other government programs. The National Procurement Fraud Task Force, chaired by Acting Assistant Attorney General MATTHEW W. FRIEDRICH, was created as part of this initiative.

Mr. GARCIA praised the investigative work of the FBI, CID, and DCIS.

This case is being prosecuted by the Public Corruption Unit of the United States Attorney’s Office. Assistant United States Attorneys LOYAAN A. EGAL and KENNETH A. POLITE are in charge of the prosecution.

The charges announced today are merely accusations, and the defendants are presumed innocent unless and until proven guilty.