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The greatest American heist of the century!
Here are some notable examples of fraudulent military spending:
## Failed Army Uniforms
In 2004, the Army spent $5 billion on a new camouflage uniform with an improved pattern that literally did the opposite of its goal and made soldiers more visible.
## Overpriced Military Parts
In 2019, Rep. Alexandria Ocasio-Cortez questioned an aerospace supplier for allegedly price gouging on a small metal part called a "non-vehicular clutch disc" that costs $32 to produce but was sold to the government for $1,800. The government purchased 149 discs for $215,000.
## Lockheed Martin Fraud
In 2008, Lockheed Martin paid $10.5 million to settle charges that it defrauded the government by submitting false invoices on a multi-billion dollar contract connected to the Titan IV space launch vehicle program[4]. Despite this, Lockheed received $30.2 billion in contracts from the DoD in fiscal year 2009, more than ever before[4].
## Northrop Grumman Fraud
In 2005, Northrop Grumman paid $62 million to settle charges that it "engaged in a fraud scheme by routinely submitting false contract proposals," and "concealed basic problems in its handling of inventory, scrap and attrition."[4] The next year, Northrop Grumman received $12.9 billion in contracts from the DoD, 16% more than the year before[4].
## Fraudulent Defense Contractors Paid $1 Trillion
A 2011 Department of Defense report found that over 300 contractors involved in civil fraud cases received $573.7 billion in Pentagon contracts over the previous 10 years, with $398 billion awarded after the fraud judgments[4]. When parent companies were included, the total paid to the top 37 companies engaged in fraud exceeded $1.1 trillion[4].
These examples demonstrate the rampant fraud and waste in military spending, with billions of dollars lost to overpriced goods, failed projects, and fraudulent billing practices by major defense contractors. Stronger oversight and enforcement is needed to curb these abuses.
Sources
[1] Report Defense Fraud: Military Contractor Whistleblower Attorneys https://www.whistleblowersinternational.com/types-of-fraud/defense-contractor-military/
[2] Exclusive: The Pentagon's Massive Accounting Fraud Exposed https://www.thenation.com/article/archive/pentagon-audit-budget-fraud/
[3] Military Contractors Indicted for $7 Million Procurement Fraud Scheme https://www.justice.gov/opa/pr/military-contractors-indicted-7-million-procurement-fraud-scheme
[4] Fraudulent Defense Contractors Paid $1 Trillion - Senator Bernie Sanders https://www.sanders.senate.gov/press-releases/fraudulent-defense-contractors-paid-1-trillion/
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