Marine captain sentenced in military contract fraud scheme

A Riverside judge has sentenced a Marine Corps captain to six years in federal prison. The sentence is for skimming nearly $2 million from fraudulent military contracts.

Federal prosecutors say Marine captain Eric Schmidt and his former wife arranged bogus equipment orders that were tied to contracts for equipment intended for U.S. troops.

Prosecutors say the scheme netted the couple about $1.7 million. The couple hatched the plan while Schmidt worked as a representative for the Iraq First Program, and his ex-wife ran an American company that supplied military contractors.

Federal judge Virginia Phillips said the fraud endangered the lives of U.S. soldiers in Iraq because fewer first aid kits and explosive detecting devices got into the hands of troops in the field. In addition to their prison sentences, authorities seized the Schmidt’s two homes, their luxury cars and several thousand dollars in cash.