— GOP-connected contractor Custer Battles e-mail talks of Filipino house maids, fashion queens

http://www.waynemadsenreport.com/ March 19, 2006— GOP-connected contractor Custer Battles e-mail talks of Filipino house maids, fashion queens (in the manner of former FEMA Nordstrom shirt aficionado Michael Brown), and, more importantly, raising a $100 million fund to pursue non-government contracting work with "a lot less risk." Later, Custer Battles did attempt to negotiate a $100 million infusion from an unknown firm in Dubai after receiving $15 million in seed money from the benefactor. Custer Battles, Inc. was formed by former US Army Ranger Mike Battles and Scott Custer from a firm called Blue Sky. The firm soon became enmeshed in major contracting fraud in Iraq (see March 18 and 15 stories below for more on Custer Battles court testimony in Alexandria, Virginia).

Battles was an unsuccessful GOP House candidate in Rhode Island in 2002. Battles was also active with the conservative Council for Emerging National Security Affairs (CENSA), a group that advocated regime change in Iran, supported the invasion and occupation of Iraq, and argued that the Vietnam war was winnable. One of its board members was Lee Wolosky, who served in the National Security Council for both the first Bush and Clinton.

The Iraq invasion offered up the possibility for windfall financial gains for Battles and his partner Custer. WMR has obtained a September 10, 2003 e-mail from Custer to Battles that identifies two of the firm’s close contacts within the Bush administration — Al Kampanen, the White House representative at the Department of Defense, and Douglas Combs, the acting Undersecretary of the Navy. Combs was the Secretary of the Navy’s Special Assistant for Business and Strategic Initiatives. These two Bush administration officials were discussing helping Custer Battles obtain contracts outside of Iraq after the firm’s dubious accounting and billing practices attracted the attention of Coalition Provisional Authority and Department of Defense investigators and auditors.

The e-mail from Custer to Battles states, "I know you can’t handle any more BD (business development) right now and I understand but we have to start planning for work outside Iraq. Al Kampanen, the White House rep at the Pentagon, who works directly for Rumsfeld, has asked me to come down and talk to him about our ability to work in Liberia and Afghanistan. He also is interested in our ability to do high risk embassy support. Doug Combs, now acting Undersecretary of the Navy, also called to see if he could ’help us grow’ outside of Iraq."

Republicans in Iraq: tales of contract fraud, money laundering, Filipino house maids and massages, close White House and Pentagon friends, and a guy "too sexy for his shirt."

Custer also informs Battles, "I would rather work the big business deals, relationships and concentrate on raising a $100 million dollar fund which will make us more money than we could ever make in govt [government] contracting with a lot less risk." According to the January 25, 2004 Providence Journal, Custer Battles received $15 million in seed money from a Dubai venture capital firm. The firm hoped to raise an additional $100 million for Custer Battles ventures in Iraq. Battles refused to disclose the name of the Dubai firm to the Journal.

The e-mail also discussed potential Custer Battles work for the US Agency for International Development (USAID). It states, "A final issue is HR [human resources]. Do we need to hire an HR person or HR shop here in the states? I have zero confidence in Tony’s ability to handle the staffing issues going forward especially if we get Basra, Mosul and/or USAID."

Custer also talk of including former Lebanese Shia Amal official Mohammed Darwish, the owner of Cyprus-based Laru, Ltd., into the Custer Battles organization and decision making process. "You are right that we need to figure out the Mohamed [Darwish] relationship. He does a lot of work that we don’t have visibility over and he would do a bad job of keeping others in the loop. I know Mohamed is frustrated by the lack of organization and clearly outlined roles and responsibility. We have to remember that we could not be in Iraq if it were not for Mohamed’s help on the first two trips. All and all it will come down to the fact that we can’t back out on our deal with him and we have to integrate him into our team in a meaningful way." In January 2004, Darwish and Michel Mukattaf, a son-in-law of former Lebanese President Amin Gemayel and owner of a Lebanese currency exchange company, and Richard Jreisati, a former Lebanese military officer, were arrested by Lebanese authorities for attempting to smuggle a cache of 164 million in 25,000 Iraqi dinar notes into Lebanon from Baghdad Airport. Custer Battles had the Iraqi Currency Exchange (ICE) contract with the Coalition Provisional Authority and a major security contract for Baghdad Airport.

Custer also tells Battles, "We actually ordered 5 Filipino house workers, one for each bedroom! I’m actually not joking, except the bedroom part. Getting very concerned about the security situation, and while I have total confidence in Mort’s staff I would not have any confidence in our new staff. We are going to bring in Flips [a pejorative term for Filipinos] to man the inside of the house, with the Sudanese and Iraqis being outside. Otherwise, we’d literally have to clear the house of boobytraps every time we left the house. Plus it will be great for parties, and Mercy can run herd." Custer concludes the e-mail, "As a reminder please send the RI [Rhode Island] water stuff and the rotation schedule so I can plan my return. Thanks again I know how hard you are working. Can I sleep in your bed while you are gone? Did you order my Pilipino masseuse?"

The e-mail continues to reveal the party atmosphere among the Custer Battles crew in Iraq. "I think we have a great brand in some young guys who just make things happen. There is no way that Fred (CAG [Civil Affairs Group] is now Project Right Said Fred for "I’m too sexy for my shirt" and shortened to Fred) would deal with Baumann [retired Brig. Gen. Charles Baumann, Custer Battles’ contract director in Iraq] like they are with us . . ."

Click here
http://www.waynemadsenreport.com/cu...for additional testimony in the Custer Battles case in US Federal Court in Alexandria, Virginia.

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March 18, 2006 — More testimony on Custer Battles fraud in Iraq involving the Iraqi Currency Exchange (ICE) project. Testimony of retired General Hugh Tant and others prove damaging to GOP-linked contracting firm. Details of Custer Battles Enron-like offshore subsidiaries revealed. A tangled web of shady firms with names like Laru, Custer Battles Levant, Relief Solutions, Blue Sky, Red Sea Cabins, Saudi Arabian Trading Company (SATCO), MT Holdings, and a relationship between Custer Battles and Bearing Point are outlined. There is even a case in which Custer Battles stole forklifts from Iraqi Airways, repainted them, and sold them to the U.S. government at a handsome profit. Things went well until a fuel leak washed away the blue paint on one forklift revealing the original Iraqi Airways colors and logo. Click here
http://www.waynemadsenreport.com/cu...for Feb. 2006 abridged testimony Custer Battles repainted stolen Iraqi Airways forklifts and sold them to the US government. Things went well until the blue re-paint job washed away revealing the Iraqi Airways logo