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Top McCain Bundler Allegedly Bagged Lucrative Pentagon Iraq Contract Through Jordanian Connection


Today's Washington Post has a much-discussed piece about a top McCain fundraiser named Harry Sargeant, who has "bundled" a huge amount of campaign contributions for McCain from a host of unlikely donors.

But there's another huge piece of the story that WaPo didn't report on -- one that could create complications for McCain.

Sargeant is the owner of an oil-trading company that has a lucrative Pentagon contract to supply fuel to the U.S. military in Iraq by way of Jordan -- and he's also reportedly getting sued by the brother-in-law of the King of Jordan over that contract.

In the suit, the brother-in-law, who is or was Sargeant's business partner, alleged that he used his connections in Jordan to help get wire the Pentagon contract for Sargeant only to get subsequently defrauded out of profits for it. He alleges that he persuaded Jordan to allow IOTC to deliver the fuel through Jordan -- a necessary requirement for getting the Pentagon contract.

What this means for McCain isn't really clear. But the upshot is that one of the more prolific bundlers for McCain appears to have bagged a huge contract to deliver fuel to the U.S. military in Iraq, even though he wasn't the lowest bidder for that contract, allegedly by relying partly on a connection in Jordan to deliver it.

Not only that, but the lawsuit also reportedly alleged that this chief McCain bundler tried to exclude other competitors from the contracting process in order to maximize profits off the war, though these allegations are a bit vague. The lawsuit appears to be ongoing; if it's been tossed out of court, it hasn't been reported yet.

There's even a juicy connection to Florida governor Charlie Crist, a leading McCain surrogate who is talked about as a potential McCain Veep: It turns out that Sargeant has also raised tons of money for Crist and even was his fraternity brother in college.

A few months ago, NBC News laid out the facts about the lawsuit in this piece. According to NBC, Sargeant's company, called International Oil Trading Company, has a Pentagon contract worth hundreds of millions of dollars per year to supply fuel, mostly aviation fuel, to the military, which it ships to Jordan and then across the border into Iraq. The company's latest contract is worth $913 million over two years, and the Pentagon confirmed to NBC that it wasn't the lowest bid.

Why did Sargeant's company get the contract? NBC explains, and details the suit...

The way the American military structured the deal, only a company with the blessing of the Jordanian government could win the contract. A bidder was required to have a Jordanian government "Letter of Authorization," and only IOTC received such a letter.

The lawsuit against Sargeant was filed April 10 in Florida state court by Mohammad Al-Saleh, who is married to the half sister of King Abdullah of Jordan. Al-Saleh's suit says he essentially brokered Sargeant's contract by arranging the approval and cooperation of the Jordanian government, using his "connections and influence."

The lawsuit alleges that Al-Saleh arranged for the Jordanian government "to issue a letter of authorization to IOTC." Al-Saleh's lawyer, Jonathan Frank, said, "Were it not for my client, they would not have been able to get that letter."

The lawsuit also suggests that Sargeant tried to exclude others from getting the lucrative contracts and moved to maximize profits off the war:

According to minutes of a company meeting in Amman attached to the lawsuit, Sargeant tried to exclude all rivals from the Pentagon contract and pushed for "maximizing profits by getting all the contracts and not leaving hope for the competitors."

The lawsuit further alleged that IOTC subsequently tried to defraud Al-Saleh out of profits from the contract, an allegation that IOTC flatly denies. You can read the rest about the lawsuit and about IOTC's response here.

We tried to reach Sargeant ourselves, but a person who answered the phone at his company said curtly that he wasn't available and abruptly hung up.

Bottom line: This Sargeant fellow is one of McCain's more prolific bundlers. Seems like there's a lot more here worth digging into.


57 Comments

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Great stuff - this is a great companion piece to your work on the Hess employees.

Great work Greg and Eric.

Here's some more background on this bundler and the "mechanics" and unregistered voters who gave the max to McCain:

http://strategy08.wordpress.com/2008/08/06/mccain-bundler-raises-questionable-contributions-from-mechanic-unregistered-voters/

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- Ok, I knew there was a reason I really felt hostile toward this bundling thing - it's because it's the new Repug way to raise illegal money.

They maxxed out on the Indians that Abramoff and Delay ripped off unmercifully. The relevant actors are mostly in jail.

The new improved Repug Dirty Money Raising Tool: Bundling!

Bush did it in 2004. Remember the Bush Rangers and Pioneers? Bundlers.

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I do remember that, but it didn't stand out at the time - I was seeing those categories as the kind of thing any non-profit does: gold donors, platinum donors - that bullshit.

You're right -

Damn guys, can't you just let a maverick be a maverick?

Im sure with the way politics have evolved that this isnt the first time this happened with a presidential candidate.


OMG, Photo of Edwards with Love Child, In HOTEL

Unfortunately it sounds too convoluted to ever catch on with the MSM/average voter.

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Short and sweet:

McCain has war profiteers working on his campaign.

With a little more meat:

"...during World War II, President Franklin D. Roosevelt said 'I don’t want to see a single war millionaire created in the United States as a result of this disaster,' and then-Senator Harry Truman denounced war profiteering as 'treason.' Earlier in the century, Sen. Robert LaFollette called war profiteers 'enemies of democracy in the homeland.'"
Institute for Southern Studies

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Excellent quote.

Indeed Jonze. Try and repeat that headline five-times-fast. Yowza.

http://thepajamapundit.com/

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Unfortunately it sounds too convoluted...

Yeah, I'm afraid this story really doesn't have legs.  Too much other stuff going on.  I mean, if Ron Suskind's evidence of seriously impeachable offenses can't get traction, well...

(But dear TPM EC'ers -- please don't let me discourage you from digging, and don't think for a moment that I and others here don't appreciate your work; we absolutely do.)

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O yeah, it's not like the WaPo will pick it up or anything. O, wait...

Personally, I'm stunned that there's not more reaction to the Suskind story. I realize that we've all got outrage fatigue, and these b---ards are already halfway out the door. But asking the CIA to forge and plant a letter whose only conceivable purpose is to deceive US voters . . .

To me, that's a different level of blatant illgeality.

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When did the Suskind story come out?


Yesterday. He was on NPR, Today, Olbermann, HuffPo -- everywhere.

But the netroots were like "yeah, so, they probably forged a letter to prove an Iraq-Al Qaeda link -- par for the course. I guess it's illegal to use the CIA for domestic disinformation. But, you know, with these guys you just can't go wiggy about every little transgression! Hey, btw, what was today's Gallup number for Obama?"

I think the prob is that a lot of people don't see a middle course between "impeach" and "do nothing." So, since we're prob. not going to impeach, at this point, they're just shrugging stuff off. Personally, I suspect that's why Josh is running the Dahlia Lithwick video today.

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Yesterday.


You people never cease to amaze me. The story came out 24 hours ago and y'all are already whining that it hasn't been picked up.


good lord.

Point taken. But at least in this case I'm not whining about the MSM. I'm whining about us -- and we're supposed to be a bit faster.

I think that there is another factor in play here as well...

Sadly, people are getting used to this type of story. "Corruption at the highest levels of government" has become a common theme in much of the evening news coverage (and even more so on the 'net).

I don't know about everyone else -- but when I hear that W. & co. have covered up information or deliberately misled the American people about... well... anything -- I'm not surprised anymore. I'm furious, but I almost expect this kind of bile.

http://thepajamapundit.com/

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O I am liking this.

This is more of McLame and Big Oil trying to take over and hold the government - just like Commander CooCoo Bananas and Emperor Cheney.

Keep hammering on this, Greg - I think this is very relevant and could turn into a bigger story and it could be yours! :)

Campaign Finance reform is sooooo 2000.

Good work boyz!

Nothing like a little Pay to Play action

Great job, Greg! Further proof that TPM can sniff out the stories better than WaPo reporters ever could....

I think we're going to be seeing more on bundling, bundlers, and the Hess Corporation, lot's more.

Keep it up!

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Yeah, it is pretty convoluted - hard to boil down to byte-sized chunks. We need to find an equivalent to 'Al Gore Buddhist Temple.'

Maybe a simple question is the best way to frame it until enough rocks are turned over.

'Is John McCain taking dirty campaign money?'

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Thanks for putting those (the bundling article with the lawsuit) together so quickly, guys.

Quick Q, tho: if he *only* bundled $50,600, is he really a "top" bundler - or "one of (his) more prolific" bundlers?

No, top bundlers have been raking in far more than $500,000 for McCain and his Victory Fund.

See all the bundlers here:

http://www.johnmccain.com/Informing/fundraisers.htm

You will notice that John Hess of the Hess Corp. IS one of them.

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Thanks, joseph. I had based my Q on the WaPo article, which implied that he had just raised the $100,000 for three different candidates and 1/2 of which was for McCain. I then noticed the MSNBC report indicated he was major, and I briefly looked on McCain's site, but didn't find the page you linked.

Yep, he's a "top" bundler!

Obama bundlers are found here.

http://answercenter.barackobama.com/cgi-bin/barackobama.cfg/php/enduser/std_adp.php?p_faqid=130&p_created=1176309944&p_sid=85P27s8j&p_accessibility=0&p_redirect=&p_lva=&p_sp=cF9zcmNoPSZwX3NvcnRfYnk9JnBfZ3JpZHNvcnQ9JnBfcm93X2NudD0xMjEsMTIxJnBfcHJvZHM9JnBfY2F0cz0mcF9wdj0mcF9jdj0mcF9zZWFyY2hfdHlwZT1hbnN3ZXJzLnNlYXJjaF9ubCZwX3BhZ2U9MTI*&p_li=&p_topview=1

Yes, Obama is bundling as well. Bundling IS legal, as long as the proper paperwork is filed with the FEC (if the bundler raises more than $15,000).

The larger issue is of course, the TYPE of bundlers you use. For example, energy company exec- John Hess. What is McCain going to owe him for all his hard work raising money for him?

Answer: A change in position so he is now pro-drilling.

Of course, another example is oil trading exec Sergeant above. Not the type of people I'd want to owe anything.

The second larger issue is where are these funds the donors are using coming from? For example, the Hess donor funds seem very fishy considering they are huge amounts coming from working class families with little to no interest in politics.

This is a really mucky story. It boils down to a war profiteer working to prolong the war in order to make more money. I bet this Sargeant guy has some Arab business associates who are the real war profiteers behind these strawmen donations.

I would look into the family connections of the strawmen. Are they all from Jordan by any chance? Are their families originally all from the same village in Jordan? Who is on the board of IOTC, who provides the actual trucks and Jordanian drivers for IOTC? any connections?

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The problem with this kind of stuff is that it doesn't get any traction in the right-wing corporate media. Obama is getting hammered with the celeb negative attack, the drilling lie and the tire guage bs. Dems need to come up with sound bite distortions of the republicans and their agenda. Incidentally, I knew that the german speech would be a bad thing and the republicans would get a ton of mileage out of it. Dammit. We're going to be seeing this crap until november.

Ah jeez, really. Tire gauges? You think they're killing us? It's not quite the same thing as "John Kerry doesn't deserve his medals." And now McCain is even flip-flopping on tire gauges -- as Barack points out.

You don't like "same old politics" / "same tired, failed policies"? The dig at McCain's doddering geezerness too subtle for you?

What about "McCain’s energy plan reads like an early Christmas list for oil and gas lobbyists. And it’s no wonder – because many of his top advisors are former oil and gas lobbyists."

I mean, do we actually have to lie? It seems to me as though we're hitting these idiots plenty hard while telling the literal truth.

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It doesn't have to be a blatant lie, just distort, like the republicans distort. I actually do think that the distortion about the tire guages is effective as is the gd off shore drilling. I was thinking about this everytime a surrogate talks about the off shore drilling they should call it a lie what the republicans are saying. Get aggressive with the "media." Tell them to do their jobs. Throw the king's energy department report in the journalists face pointing out no impact for 30 years and then it would be insignificant. Dems have to start getting aggressive and changing the narrative.

Why not do an ad on off shore drilling showing the clean up and horror of the valdez spill and the santa barbara spill and I am sure that there is video from the katrina spills from the rigs that got destroyed in the hurricane. Mcbush's energy policy, more oil destroying our beaches and killing our wildlife. Throw in some of the horrible spills in europe and around the world. Same old big oil politics. They have to do something to grab attention and change the dynamic of what is going on. Then they can swing into obama's future for energy. I like it. It sings.

That's a hard-hitting ad if you're targeting Marin County. But to people out here in flyover country, pictures of birds covered with oil = the whiny 1970s ecofilms we were forced to watch in grade school.

Nah, what they're doing is good. Barack looks comfortable, confident. He's both amused and scornful of Republican BS, and he keeps coming back to what he's going to do to make a difference in my wallet.

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I don't know about the criticism of the add. Alot of people in flyover country like to go to the beach and more and more americans are getting concerned about the environment in general. Add a spill along the mississippi, that's in flyover country. I think it sells.

The problem that I have with obama now is that he is always reacting. He's got to get out in front of somethings and he needs some biting soundbite adds. You and I may be paying attention to his response, but 80% of america isn't. They just see the sound bite. Why can't dems come up with good sound bites? It really is strange when you think about it. It's been an age since there was a good dem sound bite add. They always seem to be republican.

--the Hess donor funds seem very fishy considering they are huge amounts coming from working class families with little to no interest in politics.--

Actually, this piece on Sargeant is an even better example of this.

Great work, Greg! I just had to say it again!

Saw this earlier today, poor guys:

Hess shares plunge as crude prices drop on Nymex

http://www.forbes.com/feeds/ap/2008/08/04/ap5287682.html

Yeah, guys, awesome stuff!

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Semi-off topic, but it really sticks in my craw. The right-wing media always falls back on the bs line that obama is "unknown" to many americans. That really is bs. As indicated by this poll which says that nearly half of americans are "hearing too much about obama" and the election is 3 months away. Obama should be peppering the airwaves with ads defining mcbush so that the poll is reversed and people are tired of hearing how awful mcbush is and that he would be a terrible president. Come on, mcbush defining ads are the way to go. This is getting critical.

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Wow, isn't this contract story almost 2 months old? MSNBC reported this back in June. They were the only company who had the Jordanian government "Letter of Authorization". No other bid mattered.

What's the significance of this bundler raising funds from 'unlikely donors'. Most of the donors have names like Ibrahim, Abdalla and Alhawash.

The link would be that it is looking like McCain's bundlers are CROOKS!

Namely- Hess and Sergeant. Who knows what further digging will turn up.

Secondly, it looks as if these same shady bundlers are also getting REWARDED for all their fund-raising. Altruists they are not.

Reminds me how Oilbama was successful in voting for the 2005 Energy Bill, written in secret by Vice President Cheney and the energy lobby. Thomas Friedman referred to the bill as “the sum of all lobbies.” U.S. PIRG noted that the bill’s “heavy tilt toward big oil companies reflects the influence of Exxon Mobil and other oil companies on policy-makers in Washington, DC.”

The collective reduction in national consumption of energy (gas and electricity) is significant for home heating. The Act provided tangible financial incentives (tax credits) for average homeowners to make environmentally positive changes to their homes. It made improvements to home energy use more affordable for walls, doors, windows, roofs, water heaters, etc. Consumer spending, and hence the national economy, was abetted. Industry grew for manufacture of these environmentally positive improvements. These positive improvements have been near and long-term in effect.

The collective reduction in national consumption of oil is significant for automotive vehicles. The Act provided tangible financial incentives (tax credits) for operators of hybrid vehicles. It helped fuel competition among auto makers to meet rising demands for fuel-efficient vehicles. Consumer spending, and hence the national economy, was abetted. Dependence on imported oil was reduced. The national trade deficit was improved. Industry grew for manufacture of these environmentally positive improvements. These positive improvements have been near and long-term in effect.

http://en.wikipedia.org/wiki/Energy_bill_of_2005#Support

Not the best legislation, but far from the worst, and a far cry from what was once Cheney's Energy bill.

"Help get wire the Pentagon"??

If you happened to catch Bill Moyer's Journal when he interviewed the author Thomas Frank's, THE WRECKING CREW he chronicles the Abromhoff scandals and explains how Repubs finance their misdeeds with political donations, backed by taxpayer pork projects. FOLLOW THE MONEY. You’ll find a rich snake somewhere!

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Indeed.


Probably somewhere in Texas.

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Yep, there have been many a GAO study showing that surprise, surprise privatization of government is completely inefficient and more costly than if government bureaucrats did the work privatized. Sometimes the costs are two to three times greater than if the government kept the work in house. The studies really are shocking. One of the reasons why is just common sense, a profit motive. The other reason why is nobid contracts to republican campaign contributors that just flip money taken from the taxpayer into republican campaigns. It really sounds criminal to me. Of course, no press on this stuff.

I think chimpeach is on the right track reducing this down to the necessary New-York-City-tabloid-headline-style minimalism. Nailed it, in fact...not that my town's sleazy tabloids, love them though I do, would ever report this story the way it needs to be told.

Michael A - you've found your inner Mad Man. I can see those TV ads now! Throw in a few pathetic slick-greased birds being compassionately rinsed off in a post-spill veterinary rehab, and we're all set.

I like distortion.

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The thing is that I remember a ton of footage from the valdez spill that was simply horrifying and disgusting. It really would make a good add.

The company's latest contract is worth $913 million over two years, and the Pentagon confirmed to NBC that it wasn't the lowest bid.

The company has had a total of 3 contracts:

Dec 27, 2006 - $140,684,763

May 3, 2007 - $456,802,652

Feb 26, 2008 - $456,802,652

Total: $1,054,290,067

btw- IOTC or International Oil Trading Co Limited, incorporated in 2005, in Florida, claiming 3 employees and $310,000 in annual sales.

John McCain attended a fundraiser at Harry Sargeant's home, along with Crist, in early March of this year:
http://weblogs.sun-sentinel.com/news/politics/palm/blog/2008/03/mccain_and_crist_raising_money.html

Any idea how to find a photo of them together at this event?

Sargeant's name also comes up in a Boston Globe article from last April 27, "McCain campaign violates own travel policy Candidate's use of corporate planes at issue"...

Sargeant was one of the nice guys who McCain borrowed an airplane from, despite McCain's promise not to use planes belonging to companies that lobby DC...

The article is, of course, here.

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Just wanted to point out that I did a quick read through of the WaPo article on Sargeant and came away with a feeling that those donations may not have been from "straw donors" but could be worse than that.

The reluctance of some people to talk almost sounded to me at least that they may have been threatened to donate money in fear of retribution through their business, possible deportation, or threatening family members that lived overseas.

That is the feeling that I got...

It seems to me Sargeant is a very smooth operator, having read the lawsuit Sargeant along with another Jordanian Partner Abu Nabaa formed a company in Jordan with the King of Jordan's brother in law called IOTC jordan then two years later decided to go solo without him by forming another company IOTC USA ( Sargeant& Abu Nabaa) yet all letters of Authorization form the Jordanian Gov were issued to IOTC Jordan. it looks like there is fraud here

Follow the money is the only way to go. Unfortunately, bundling happens on both sides, and the influence of business and interest groups is magnified by the huge scale of campaign fund raising.

The Center for Responsive Politics estimates that each candidate needs to raise five-hundred million dollars. Gulp. That's a billion dollars total for the two candidates, a figure that does not include the others who ran during the primaries.

No doubt, a billion dollars of spending serves as a sort of limited economic stimulus package, but it does not serve democracy.

Life as Usual in Board Rooms and Back Rooms analyzes data provided on the Center for Responsive Politics web site to conclude that both Obama and McCain receive funds from substantially similar interest group categories. While there are differences of degree and kind, the fact remains that sixteen of the top-twenty donor categories are the same, and the remaining four areas provide funds to both candidates, not just at the top-twenty level.

Another source of information on campaign finance bundling practices is White House for Sale.

It's not a pretty picture, no matter who your favorite candidate might be.

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