HOW TO PROFIT FROM THE IRAQ WAR

MSNBC.com


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Iraq fuel deal sparks suit

McCain fundraiser sued by partner in lucrative contract with U.S. military

By Aram Roston
Investigative producer
NBC News
updated 6:32 a.m. ET, Wed., May. 28, 2008


A little-noticed civil lawsuit in Florida is shining a light on an unusual but hugely profitable Pentagon contract to ship millions of gallons of aviation fuel to U.S. bases in Iraq through the kingdom of Jordan.

The deal involves a cast of influential characters, including the king of Jordan's brother-in-law, who is suing Harry Sargeant III, a top Florida-based fundraiser for Sen. John McCain's presidential bid.

Sargeant is a Florida businessman and former Marine Corps pilot hailed by the McCain campaign as a "Trailblazer" for raising $100,000 or more in political donations. Through a company called International Oil Trading Co., or IOTC, Sargeant and a partner have a lucrative contract worth hundreds of millions of dollars per year to supply American military forces in Iraq with fuel, especially aviation fuel. The firm ships the fuel to Jordan and then trucks it across the border, where U.S. forces escort the convoys to air bases.

Sargeant's IOTC has experienced phenomenal growth since the Iraq war started, transforming itself from an unknown business in 2004 to a major Pentagon contractor in only a few years.