Federal government extracts $389M penalty from contractor who admits price gouging military


Two companies are paying huge fines after admitting to inflating the cost of items sent to U.S. troops overseas.

Swiss company Supreme Foodservice and a United Arab Emirates subsidiary have agreed to pay a total of $389 million in damages criminal and civil penalties. They’re admitting to overcharging the Philadelphia-based Defense Logistics Agency for food and water supplied to troops in Afghanistan.

Assistant U.S. Attorney Bea Witzleben says they overcharged for everything from ice to non-alcoholic beer.

“Supreme’s owner, the majority owner, actually marked up the beer, his lower executives suggested a 25 percent, he raised it to a 125 percent markup.”

The company did almost $9 billion worth of business with the American government. It admitted to overcharging by about $50 million.

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