US House passes bill to curb wartime fraud by private contractors News
US House passes bill to curb wartime fraud by private contractors

[JURIST] The US House of Representatives passed the War Profiteering Prevention Act of 2007 [HR 400 materials] Tuesday, a bill creating new criminal provisions to govern fraud conducted by private defense contractors against the US government. The measure, passed by a vote of 375-3 [roll call], "amends the federal criminal code to prohibit profiteering and fraud involving a contract or the provision of goods or services in connection with a mission of the U.S. Government overseas," according to the CRS summary [text] of the bill. US Rep. Neil Abercrombie (D-HI) [official website], who sponsored the bill, said [press release] Tuesday that he introduced the bill to prevent defense contractors from viewing "the U.S. occupation of Iraq … as 'Open Season' on the American taxpayer." Persons found guilty of knowingly defrauding the US or a provisional authority in connection with a US mission overseas would be subject to a 20-year prison sentence and a fine of $1 million or twice the profits that resulted from the fraudulent activity.

The Senate Judiciary Committee approved [press release] a similar bill [S 119 materials] earlier this year, but that measure has not yet come up for a vote on the Senate floor. AP has more.