Iraq fraud trial begins; jury selection continues this afternoon
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By Ann McGlynn | Monday, April 14, 2008 |
Potential jurors in the trial of an Illinois man accused of fixing a contract in the Iraq war and accepting a $1 million payment answered several questions this morning, ranging from their knowledge about the use of private contractors in Iraq to what bumper stickers they had on their cars.
Jeff Mazon of Country Club Hills, Ill., is on trial in U.S. District Court in Rock Island. He worked in Kuwait for KBR on the Logistics Civil Augmentation Program, or LOGCAP III. The contract is overseen by the U.S. Army Sustainment Command on Arsenal Island.
Many of the potential jurors said they had at least an awareness that private contractors were working in Iraq. Most of those then said that they did not know the names of the companies or were familiar with Halliburton, KBR’s former parent company, but had not heard of KBR.
The bumper sticker answer often elicited chuckles.
One woman told Judge Joe B. McDade that she once had a breast cancer awareness sticker on her car but that it was stolen. One man admitted to a NASCAR bumper sticker but said that his wife won’t allow him to put it on his vehicle.
Opening arguments are expected this afternoon.
Mazon was responsible for soliciting bidders, negotiating with them and issuing subcontracts under LOGCAP III. It provides everything from laundry service to food for the U.S. military, mostly in southwest Asia.
According to court documents, in February 2003, as plans were being made for American troops to enter Iraq, Mazon awarded a company named LaNouvelle a contract for $5.5 million to provide the military with fuel tankers.
Mazon is accused of inflating LaNouvelle's bid and that of another company eight times over the estimated cost before awarding the contract. That turned a $685,000 job into one with the $5.5 million price tag.
Mazon was able to convince KBR officials in the United States that he did not have to inform Army officials on the ground in Kuwait that the bid was significantly higher than anticipated. He also did not explain the situation to his direct supervisors, court documents indicate.
When Mazon left KBR in June 2003, Ali Hijazi, a LaNouvelle manager, gave him a $1 million check, "an award for Mazon's favorable treatment of LaNouvelle," prosecutors say. An attempt was made to make the $1 million appear to be a loan to cover its intent, federal authorities allege.
Hijazi also is charged in connection with the case. He remains at large and is believed most recently to be living in Kuwait. There is no extradition treaty between the United States and Kuwait. Hijazi and the company he worked for are banned indefinitely from doing business with the U.S. government.
The number of documents involved in the case tops 1 million. They include bank records, travel documents, military contract records, employment agreements, e-mails both to and from Mazon, Hijazi and others, and transcripts of voice mails and conversations.
Ann McGlynn can be contacted at (563) 383-2336 or amcglynn@qctimes.com.
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