Convicted War Profiteer Still Lives High Life

Charlene Corley overcharged the government by over $20M but is still free.

ByABC News
February 12, 2009, 12:11 PM

June 19, 2008 — -- Despite pleading guilty and agreeing to forfeit millions of dollars in possessions, a convicted war profiteer is still living the high life and has avoided going to prison. Charlene Corley pleaded guilty in August of last year to conspiracy charges to commit wire fraud and money laundering after she and her sister overcharged the Department of Defense by more than $20 million in excess shipping charges. Corley, however, still has her numerous homes, at least four of them ranging from $600,000 to $900,000, each and part of her collection of cars, which includes at least two Mercedes Benzes.

As owners of C & D Distributors, Corley and her twin sister Darlene Wooten took advantage of the government's need to expedite supplies to troops in Iraq and Afghanistan. Their scam involved attaching large shipping costs to small, inexpensive items including washers, specialty screws and cotter pins all purchased by the Defense Department.

In one instance, they charged the US government nearly a $1 million to ship a pair of 19-cent washers. Prosecutors say their scheme netted the sisters a windfall of $20.5 million.

Despite the nature of the crime and amount of money involved, Corley remains free for the foreseeable future. All of Corley's homes and automobiles are slated for seizure by the South Carolina U.S. Attorney's office, but have yet to be taken from Corley despite her guilty plea last summer.

"It certainly is frustrating that somebody who was caught exploiting the system continues to exploit the system to avoid punishment," said Winslow Wheeler, director of the Straus Military Reform Project.

Corley's attorney recently asked for more time to respond to the pre-sentencing report, a request that was granted. There is no sentencing hearing scheduled in the case so Corley will remain out of prison for the foreseeable future.

"We're not pleased at all with being put into this situation," lead prosecutor Debbie Barbier told ABCNews.com regarding the extension granted to Corley's attorney.