McCain fundraiser accused of "war profiteering"

Posted on Thursday, October 16, 2008 1:21 PM ET
Filed Under: ,

By Aram Roston, NBC News Producer

A company that ships oil into Iraq for use by American forces there "appears to have engaged in a reprehensible form of war profiteering," according to a letter by Rep. Henry Waxman, D-Cal., Chairman of the House Committee on Oversight and Government Reform. The company, International Oil Trading Limited, is run by Florida-based businessman Harry Sargeant, a top fundraiser for the presidential campaign of Senator John McCain.
 
Waxman's committee launched an investigation earlier his year following a May 2008 report by NBC News that first reported on the oil contracts.

Sargeant, the McCain fundraiser, is the president of IOTC, which won massive Pentagon contracts to provide U.S. troops in Iraq with fuel. NBC first reported on the contracts in May. This summer, Sargeant came under the spotlight again after the Washington Post reported that he was at the center of campaign-contribution "bundling" involving tens of thousands of dollars in political contributions from "unlikely" donors.  In August the McCain campaign said it was returning about $50,000 linked to Sargeant's fundraising.
 
Today, Waxman released a letter he sent to Secretary of Defense Robert Gates, calling for action on the huge oil contracts. "Over the last four years," Waxman wrote, "IOTC has been paid over $1.4 billion by U.S. taxpayers to deliver fuel through Jordan into Iraq and has earned a profit of over $210 million."

Waxman said that those profits were significant. "The IOTC contracts stand out for the extent of the company’s apparent profiteering. Of the $210 million in profits received by the company, at least one third--$70 million--appears to have benefited a single individual: Mr. Sargeant. If the IOTC contracts had been awarded to the lowest bidders, the taxpayers could have saved over $180 million."
 
As NBC News reported, Sargeant was sued by his former business parter, a brother-in-law of the king of Jordan.  According to the Waxman letter: "As a March 2004 'Preaward Survey' reported, IOTC’s 'major strength is the backing of the Royal Family.' In effect, this backing gave IOTC a monopoly on the delivery of fuel through Jordan."
 
A lawyer for Sargeant and IOTC has not returned a call seeking comment.

Comments

Oh, that can't possibly be!  We all know that John McCain will slash spending with a "hatchet"!  He would NEVER have ties to someone who wasted the taxpayers money!  He's a MAVERICK!

I'm sure John McCain can figure out numerous ways to line his pockets, the thing he can't seem to figure out is that the media will uncover every one of his dastardly deeds!  Yes John, we in America know you and we say "no thanks"!
For a Senator to tell the world; at every opportunity of his days as a prisoner; I find it so sad that he would be associated with such an illegal activity. in my eyes.  I beleive that ALL the funds need to be returned to the American people.  If I had it my way it will be with interest!!!
These are the kinds of stories that have always existed in Washington.  These are why people like McCain will always have a base.  Why is this story not out and circulated like that of ACORN or Ayers.  Why did the Keating 5 story have only its 5 minutes in the limelight?  Because the same people who behave in this manner, are the only ones who revel in BASELESS character assassinations.

Like in last night's debate, hen asked to qualify the opponent's running mate, Obama did not attack.  A man as intelligent and well educated as Obama can so plainly see how ignorant and hate-mongering Palin can be.  This was a wonderful opportunity for him to really delve into her disqualifications--yet he restrained and switched the topic.  This tells me more about his character than anything else.

McCain and Palin want to ask who is Obama?  It is there so plainly to see.  He is a man of temperance, intelligence, and quiet strength.

Who is McCain?  A sneering antiquated man who deep inside knows he is facing a greater man than he, and no matter what he does, he can't best him--hence the mocking and barely pent up anger.  
Sure there are concerns with McCain who continues to try link Obama with guilt by association tactics. McCain has been in the Senate for umpteen years and has profitted nicely. We know that he has lobbied for the beer industry. Since his "expertise" is war management, should it surprise anyone that he is vulnerable to that industry's lobby?
The fact that he uses this tactic while he is vulnerable (as well as on other issues), completely neutralizes his argument about Obama and makes Sen. McCain a hypocrit.
Once again, we see that the real interest of the Bush administration and pal McCain is to redistribute the wealth of the American people - to themselves, their close friends and their business associates.  Interesting that when Senator Obama suggests that we reduce taxes on the middle and lower middle classes, it is "class warfare," but when they reduce taxes for the super wealthy and the large corporations, that's an "economic plan."  As far as I am concerned, profiteering should be punishable like any other form of treason.  Our soldiers are dying, and I hate the idea that they are doing so to further line the pockets of republican "fundraisers."  This shows again John Mccain's true character - he says he is not Bush, but it is pretty impossible to tell the difference.  At least Bush didn't try to foist Moose Killer Barbie on us.  I cannot imagine blinking and dropping her g's would impress any leader - foreign or domestic.  This just reiterates McCain's closing comments last night - all about how great a guy he thinks he is, except that he forgot to mention Sargeant, Keating, Iran-Contra, his OWN connections to ACORN, Barbie's husband's connections to the domestic "terrorists" who want to secede from the US and take all the Alaskan oil, etc.,etc.,etc.  He is an angry, bitter old man.  Maybe he was more than that at one time, but his desperation and sense of entitlement have destroyed any good qualities he once possessed.  He should be ashamed of himself - I sure am.  It would be great to see something done about Sargeant - but unlikely.  This is why we need McCain, and his cronies, out of Washington.
I hope anyone paying attention is not shocked or surprised in the least by this report. Unfortunately I have a feeling this is the tip of the iceberg when it comes to fraud and the Iraq war. No bid contracts to Cheney's company Haliberton and others are probably up to their ears in fraud. Who is paying for it? Taxpayers.
I have only been living in america for 7 years, and I have realized that something is fundementally wrong with right-wing(mccain painly) supporters.i.e how can people that call themselves christian boldly tell lies with a straight face. the bush adminstration LIED to the american people and led the country into war, that have cost thousands of lives, and billions of dollars. why is BUSH not labeled a terrorists? are the american fall victim to two more liars again. commander in lies mccain-painful. everyone knows they have and are lying. people wake up step out of the twighlight zone. i am really afraid if big oil and defense contractors get their way with mccain, they will be a war with iran in mccain's first term. that will be the end of america as we know it. america is going broke fighting senseless wars. I am convinced that the conservative christian/republican right are the anti-christ beyond any doubt at all. the bible says that you will know them by their works. they works are evil to the core, the ones that are not evil are ignorant so they go along with their opinion leaders never once using any critical thinking. God help us
We, The american people demand John McCain to explain his full relationship with this individual and his company.
It appears as poor judgement that Senator McCain relates to these type of anti-american activities, that are costing us millions of dollars.
Well of course Sargeant supports McCain.  If you profit from war then McCain is your man.  McCain is more interested in war and agression than Obama.  If McCain get elected, start buying defense and war stocks.  It will be the only thing that makes any money.
Are we gonna hear how he is not attached to this or is he gonna blame Obama for it. McCain has yet to take blame for anything. The money should be sent back to Sargeant and he should do this right away. He already looks bad aftre he blew the last three debates. The oil company sure backed the wrong person in this election. Obama said he was like W and this just proves it. Go Obama.
Considering Mr. McCain's involvement in the Keating Five scandal, this is no big surprise! Ask Dick Chaney about Haliburton. Political back scratching for fund raising purposes is something Senator McCain could be called on by the Democratic Leadership but, I believe they are only focused on the real issues affecting
America.
merica.
Another example of McCains connections to special interests. This should be fully investigated, and McCain should fully disclose his relationship with Mr.Sargeant, and what he was promised for his support of McCain. If he acts like Bush, Votes in favor of Bush 90% of the time, Takes money and has the same friends as Bush, He's Bush all over again. Republican in PA.
This is jut another one of Many things that McCain has repeatedly flossed over or covered up.  Another one of Many reasons that NO ONE should vote for anyone who allows the American Public be used to further put money's in the pockets of the OIL Companies and the rich.  It is the MIDDLE Man/WOMAN who is paying and has been paying for such crap.  
When will people like McCain realize that because they have more money than they can use in a life time, that there people out there who are loosing their homes, lively hood (jobs) and insurances all because of their greed.
We have reached the time for a huge CHANGE in the way our government puts the screws to the little people, the middle class and the poor.
I would love to see McCain try and live for one year on what a retired middle class American has to try and survive on.  Mr. I have SEVEN (7) houses (and dosen't know how many houses he has) McCain. Have him come to a small town in NorthWest Missouri and I will show him that he is not Popular here, he may be popular in the big city but in the country side is another completely different story.  
I guess McCain IS just like Bush. War profiteering is disgraceful. I see why McCain loves war so much...it's making all of his buddies rich at the taxpayers expense. All Americans should look very closely at these warmongers.
McCain, Ney, Cunningham, Wilkes, Abroroth, Stevens, Cheney, Libbey, Rove & Bush have lined their pockets with the blood of 4000 service members.
When will it end?
Why is this not a top story? Is some plumber guy's morning routine and lack of plumbing licensing  more important that taking millions of dollars from taxpayers?
This is disgusting, Bush and his buddies, including John McCain have sold this country out. They have given contracts to war profiteering companies who have milked the American tax payer out of their hard earned money, and made the rich people richer. The roads, and bridges in this country are in horrible shape. People have no health care, people are living in tents and have to decide to pay their house payment or electric bill or buy food. The people who are responsible for allowing this to happen should be tried for treason and sent to jail. The money they made should be returned to the great generous people of this country. Any one who profits from war is the lowest form of life. SHAME SHAME SHAME
More Republican fraud what else is new.
Gee ,another big surprise,a republican on the take or war profiteering.OK,let's approach this in the same manner McCain has with Bill Ayers,how long has he known him,how often did they meet?,etc. McCain has so many past associations with indicted,convicted,and imprisoned political cronies,not to mention acquaintances.Not to mention currently indicted,convicted,and imprisoned cronies.I applaud Obama's even demeanor and not engaging  in these idiotic types of attacks.
Isn't this what the Mc Cain needs. They have complain so much about who ever crosses paths with Obama but it's ok of Mc Cain. Is this the kind of people he is going to have in his administration? If he has all these crooks in his campaign we will have another Bush adm.and that's scary.
Your piece need to be expanded.We the common tax
payers have been wondering how the 10b dollars monthly expenditure is being disbursed. Now we know in part what the deal is(sweet heart contract). No wonder then the government asked and recieved 800b dollars almost the sum we have waisted in Iraq. We are not all dummies after all.  
I do not find this suprising.  The level of corruption and personal favors that are present in government contracts is disgusting! As usual our taxpayer money is given to companies that do not have the countries best interest in mind. They only consider their bank accounts.  They should be ashamed of their actions but, as usual nothing will happen to them. it's just buisness right?
Harry Truman would be rolling in his grave right now if he saw what was going on with these private contractors. This administration and all who facilitated them or made obscene amounts of money off the blood of our brave soldiers and citizens are the true terrorists in my eyes, oh and dont forget Wall Street terrorists who have broken the backs and wills of so many hard working Americans I hope you feel safer now.
It is past time that McCain answers for his own associates...He dogs Obama about associates...and he is in bed with lobbyists that cheat Americans out of jobs and business, power abusers, anti-American Secessionists....and now a WAR PROFITEER...

HOW CAN THIS MAN REFORM ANYTHING?

He selected a VP that abused her power and her husband belonged to anti-American Secessionists Group (AIP)...based on her husband's palling around in the AIP he should not even be given a top search clearance.

Wow....Oh My God....

Who is John McCain...? Will the media tell us about these people working on him campaign, his VP, his VP's husband pals and the other abusers that he pals around with? What about the freebies that the McCains get from Verizon and AT&T...sound like conflict of interest since John McCain is the telecommunication policeman...
I'm sorry - what?
Hmmm our politicians, in bed with BIG OIL.  No surprise there.  I'm really glad that Aram Roston, NBC News Producer has added the $ amounts that we COULD have saved with Mr. McCain's policies.  ARE YOU (the rest of us little people), getting sick of all this preaching he does?   ARE YOU ready to assume responsibility if McPain & Failin' get into the White House? And are YOU ready for a self-proclaimed soccer mom & beauty pageant queen to run these United States when John McCains ticker stops?   THEN YOU have some serious problems indeed.
This is a classic example of greed in this country. We import most of our oil from the Middle East and then refine it here and then ship it back? Are we that ignorant of the fact that Iraq has all the oil we need right there? Why not buy it there and save millions of dollars on the shipping. Things like this just makes my blood boil. There ought to be a law that if your net worth is more than half a million, you can't be in politics because it seems that common sense disapears after that and morals go out the window.
That's it? Go read "Grand Theft Pentagon" and then prosecute Bechtel, Halliburton, the Carlyle Group and others. $210 Million is nothing compared the true scope of this problem. Still it has to start somewhere.
So this means that John McCain supports war profiteering? It does if you are John McCain because he is palling around with a war profiteer and he is an associate, therefore, it must be true.
One of McCain's top fundraisers has gouged the American taxpayers.  Are we surprised?  No, we are not.  McCain's policies are designed to make the rich richer, including Sargeant.  And why wasn't McCain gentleman enough at the debate to help his wife down the stairs?  She nearly broke her neck.  Angry, disdainful, and RUDE?  You go, John!
This is why we need to gain a filibuster proof democratic congress. To end this war profiteering. If this were a democratic money grubber the right wing media wouldn't stop shouting this from the rooftops.
I'm a little confused! Don't we have laws governing Profitering during a time of war? I also worry that there is a conflict of intrest there too, and while I'm at it, doesn't our country have laws on monopolies too?! I have to admit, for the past several years, I have not been watching or reading much news, and I'm not as knowledgeable as I would like to be in the arena of economics, and politics. This year I promised myself I would get more involved, and I want to be more informed, so I ask a lot of questions. I would rather be thought of as ignorant, than BE IGNORANT.


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Deep Background is NBC News’ investigative blog. It covers national security, terrorism, spies, Iraq, and politics, as well as government waste, fraud and abuse. It is edited by NBC News Senior Investigative Producer Jim Popkin.

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