Halliburton Employee Guilty in Iraq Kickback Case
THE NEW YORK TIMES
Published: July 14, 2007

An American who worked for a Halliburton subsidiary pleaded guilty yesterday to receiving kickbacks in exchange for awarding a Kuwaiti company nearly $13 million in contracts to supply the American military with semi-tractor-trailers, refrigeration trailers and fuel tankers in Iraq and Kuwait in 2003.

The employee, Roger A. Heaton, 58, of Houston, worked for the subsidiary, KBR, as part of a logistics contract. KBR, formerly known as Kellogg, Brown & Root, was a subsidiary of Halliburton until it became a separate entity earlier this year. The contract has so far paid the companies $20 billion to supply the military with food, fuel, housing and other necessities.

Mr. Heaton pleaded guilty in Federal District Court in the Central District of Illinois to awarding two major contracts in exchange for what was to have been over $200,000 in kickbacks, although it is unclear how much of the money he actually received.

Heather L. Browne, a spokeswoman for KBR, said in a statement that the company had been cooperating with government investigators since its employees began to work in Iraq.

The Justice Department said that Mr. Heaton could receive a maximum penalty of 10 years in prison and a $250,000 fine.

The Army recently restructured the contract and awarded parts of it to KBR and three other companies.

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