Pentagon Paid $999,798 For Shipping Two 19-Cent Washers

THIS STORY WAS POSTED IN AUGUST OF 2007. IT HAS ENTERED OUR MOST POPULAR PAGE IN AUGUST OF 2010 BECAUSE IT WAS PICKED UP ON A BLOG. (Columbia) - The United States Attorney's Office announced Thursday that a 47-year-old Lexington woman pleaded guilty to defrauding the U.S. Department of Defense of more than $20 Million in shipping costs. Attorney Reginald I. Lloyd said 47-year-old Charlene Corley of Lexington, as well as the company she partially owned, Camp;D Disributors pled guilty in federal court to conspiracy to commit wire fraud and conspiracy to commit money laundering. Lloyd said the charge of conspiracy to commit wire fraud carries a maximum penalty of 20 years imprisonment and a $250,000 fine. He also said conspiracy to commit money laundering is punishable by 20 years imprisonment and a fine of $500,000, or twice the value of the property involved in the laundering transactions, whichever is greater. In addition, Lloyd said anything Corley may have gained through the fraud can be taken back by the court. United States District Judge Margaret B. Seymour presided over the plea hearing, and will sentence Corley and her business at a later date. Officials say court proceedings showed Corley and twin sister, Darlene Wooten, co-owned the Camp;D Distributors shipping company. Documents said the two operated the company from 1997 to September 2006. Officials say the company would electronically submit bids with a computer to the Department of Defense. They say the bids were sent to supply small hardware components, plumbing fixtures, electronic equipment, and various other items. Along with the cost of the items sold, Camp;D made claims for shipping costs. Officials say these shipping claims were processed automatically to streamline the resupply of items to combat troops in Iraq and Afghanistan. Investigators say the fictitious shipping costs ranged into the hundreds of thousands of dollars, despite the fact that the value of the items shipped rarely exceeded $100. In the final transaction before the scheme was discovered, in September 2006, Camp;D billed the Department of Defense $998,798.38 to ship two flat washers that cost $0.19 each. Over the course of the conspiracy, court officials say the defendants obtained approximately $20,576,925.00 in fraudulent shipping costs. The money was used to purchase beach houses, high-end automobiles, boats, jewelry, vacations, and other items. Officials say Darlene Wooten committed suicide at her Lexington County lake house last October, after being contacted by federal investigators about the fraud. Lloyd said the case was investigated by agents of the Defense Criminal Investigative Service and the IRS, Criminal Investigation and prosecuted by Assistant United States Attorneys Winston D. Holliday, Jr., and Deborah Barbier of the Columbia office./>