Three U.S. Army Reserve officers and two civilians were indicted by a grand jury Wednesday on charges they steered more than 8.6 million U.S. dollars in Iraqi reconstruction funds to a contractor in exchange for kickbacks that included vehicles, jewelry and real estate.

The 25-count indictment, filed in U.S. District Court in New Jersey, includes conspiracy, bribery and money-laundering charges, and is the latest development in a wave of criminal charges stemming from the alleged fraudulent use of U.S. funds in Iraq, CNN reported.

The indictment alleges that bids were rigged while the U.S.-led Coalition Provisional Authority (CPA) was attempting to establish control of Iraq after Saddam Hussein was toppled.

"This indictment alleges that the defendants flagrantly enriched themselves at the expense of the Iraqi people -- the very people they were there to help," U.S. Deputy Attorney General Paul McNulty said in a news release.

The indicted Army Reserve officers are Col. Curtis Whiteford, who was the second-highest-ranking official in the office overseeing construction funds in a CPA office in Hilla, Iraq, Lt. Col. Debra Harrison and Lt. Col. Michael Wheeler. Both Debra and Wheeler worked for Whiteford.

The other two defendants are Robert Stein, a Defense Department civilian who worked for Whiteford in the contracting office, and Seymour Morris Jr., a contractor and U.S. citizen who owned a Cyprus-based financial services business. Morris resides in Romania, and the United States is seeking to have him extradited to New Jersey to face charges.

The three Army Reserve officers, who worked in the CPA office in 2003 and 2004, were responsible for helping to supervise how the CPA spent an estimated 26 billion dollars available for reconstruction projects in Iraq.

According to the indictment, the three officers directed at over 8 million dollars to a construction and services company and in return, they allegedly demanded cash, a Nissan sports car, real estate, and other costly items. Morris allegedly acted as a go- between for the military officers and the construction company.

Source: Xinhua