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Former colonels to be sentenced in fraud case


The Associated Press
Posted : Tuesday Oct 13, 2009 5:56:38 EDT

PENSACOLA, Fla. — Two former Air Force colonels involved in a military contract fraud case are scheduled for sentencing by a federal judge Tuesday.

Richard Schaller was convicted in July of destroying records and lying to a grand jury. The charges came after an investigation into his defense contracting company and its relationship with the research lab at Eglin Air Force Base in the Panhandle.

Mark O’Hair, a former lab supervisor, has pleaded guilty to making false statements and engaging in a conflict of interest related to his business relationship with Schaller.

The men are among those accused by federal prosecutors looking into alleged wrongdoing by defense contractors with ties to Rep. John Murtha, D-Pa., chairman of the House Appropriations Subcommittee on Defense.

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