Alexandria arms dealer sues Iraq for $25 million

An arms dealing company with offices in Alexandria has sued the Iraqi government for nearly $25 million the company claims it’s owed for refurbishing Iraqi-owned Russian tanks.

Wye Oak Technology Inc. was owned by Dale C. Stoffel and hired by Iraq in part because of Stoffel’s history in working with Russian equipment as an arms dealer in Eastern Europe. Stoffel was assassinated outside Baghdad in December 2004. He was headed to the capital to collect payment on the $25 million Wye Oak is now suing for, the lawsuit filed in Alexandria’s federal court said.

By the time of Stoffel’s slaying Wye Oak was nearly done repairing the 160 Iraqi-owned Russian tanks that paraded through Baghdad on the day of the country’s first election, the lawsuit said. For more than a year before the job was completed, Stoffel was working with the special inspector general for Iraq reconstruction, outing high-ranking Department of Defense employees for taking kickbacks from contractors who were seeking a piece of the $125 billion Iraq reconstruction effort, his brother David Stoffel confirmed to The Examiner.

David Stoffel said his brother was able to “witness a lot of activity going on between the contractors and contracting officers that disappeared as soon as an IG walked in.”

Among the targets of the investigation is retired U.S. Army Col. Anthony B. Bell, court records show. Bell was in charge of reconstruction contracting in Iraq in 2003 and 2004. He recently tried to stifle a subpoena from the investigator general’s office demanding he turn over bank statements that “may reflect that Anthony Bell deposited funds obtained illegally,” court documents said.

A federal judge in Georgia sided with the government late last month. Bell did not return calls for comment.

Stoffel said he recently turned over information he had regarding Bell to the inspector general. At one point, Stoffel was trying to obtain a contract for Wye Oak to supply the U.S. military with AK-47s, he said.

“We were on a short list,” Stoffel said. “Somehow the contract was never awarded, but the equipment was supplied.”

Wye Oak’s lawsuit demanding the $25 million was filed Monday, the day before Iraqi Prime Minister Nouri al-Maliki arrived in the United States for a weeklong visit during which he’s expected to give thanks for America’s role in rebuilding Iraq.

“It’d be great if he started by paying what he owes us,” Stoffel said.

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