Agility Evidence Points to Continued Fraud, U.S. Tells Judge in Atlanta

Agility may still be overbilling the U.S. on military supplies, federal prosecutors said in a pretrial hearing in a criminal case against the Middle East’s largest storage and logistics company.

“We feel very strongly and have evidence that the fraud has continued,” Assistant U.S. Attorney Barbara Nelan told U.S. Magistrate Judge Alan Baverman today in Atlanta. Agility is accused of overcharging the U.S. government on a multibillion- dollar contract to supply food for troops in Kuwait and Iraq. The Kuwaiti company is “war-profiting,” she said.

The U.S.’s contract with Agility, formerly known as Public Warehousing Co., runs until December, Nelan said.

In a filing earlier this week, prosecutors accused the company of being a “fugitive from American justice” that is trying to evade a trial on charges of overbilling on military supplies. Agility, based in Safat, Kuwait, claims it has not been properly served in the case.

Richard Deane, attorney for Agility, declined to comment on Nelan’s statements in today’s hearing.

Tom Bever, attorney for Agility DGS Holdings, an Agility unit also named in the indictment, told the court that the case is a contract dispute over whether Agility should have kept discounts it received from vendors or refunded them to the government.

The company was indicted in November on allegations it overcharged the U.S. government on a multibillion-dollar contract to supply food for troops in Kuwait and Iraq. The company said April 28 it was negotiating with the U.S. Justice Department on a possible settlement of the case.

The case is U.S. v. Public Warehousing Co., 09-cr-490, U.S. District Court for the Northern District of Georgia (Atlanta).

To contact the reporter on this story: William McQuillen in Washington at bmcquillen@bloomberg.net; David Beasley in Atlanta at dbeasley4@yahoo.com.

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