The Associated Press
Wednesday Feb 2, 2011

WASHINGTON — Hundreds of defense companies that defrauded the U.S. military between 2007 and 2009 still received $285 billion in contracts from the Pentagon during the same period, a U.S. senator said Wednesday.

Sen. Bernie Sanders, I-Vt., called the figures “shocking” and urged the Defense Department to take more aggressive steps to ensure taxpayer dollars aren’t wasted at a time when the U.S. is running a $14 trillion national debt.

Citing a January report prepared by Pentagon acquisition officials at Sanders’ request, the senator said the bulk of the contracts — just over $280 billion — went to 211 companies that had civil judgments against them or settled fraud charges of more than $1 million.

During the same period, 30 defense contractors were convicted of criminal fraud, but still were awarded $682 million in new work, according to the Pentagon’s report.

Among the contractors listed in the report is AEY Inc., a Miami-based company that received a $300 million contract to supply ammunition to Afghan security forces. AEY got the work despite a record of poor performance on other government contracts.

Link to the rest of the story Billions paid to firms that defrauded Pentagon