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February 24, 2006

Custer Battles co-founder says he knew little about firm's billings

ALEXANDRIA, Va. - The co-founder of a Rhode Island-based defense contractor at the center of a federal whistleblower lawsuit testified today that he knew little about his firm's multimillion-dollar billings for its work in Iraq.

"I wasn't involved in the invoicing process ... as the owner of the company, you hire other people to do this," Michael Battles told federal jurors.

Two former employees filed a whistleblower suit accusing the company, Custer Battles LLC, of war profiteering and defrauding the government of millions of dollars.

Battles, a former Army Ranger and CIA employee who ran unsuccessfully for Congress in Rhode Island, appeared self-assured as he was asked about his company's contracts and business dealings in postwar Iraq.

"If I had to weigh in before an invoice was submitted, the company would have ground to a halt," he said.

Alan Grayson, the attorney for the two whistleblowers, alleged that Battles had "deliberate ignorance and reckless disregard" about Custer Battles' billing practices.

-- Associated Press

Battles said the Middletown, R.I.-based firm grew rapidly as it took on more work in Iraq.

"One thing I learned as lieutenant is that the secret to successful leadership is to surround yourself with people smarter than you are," he said.

-- Associated Press

Posted by Andrea Panciera  at 3:38 PM | Permalink

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