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Former government workers in scandal

HOUSTON, March 18 (UPI) -- U.S. government and contract workers once based in Texas have fixed bids and Department of Defense contracts, the San Antonio Express-News reported.

The newspaper said federal affidavits and court records show a number of employees assigned to the U.S. Army Medical Command, or MEDCOM, steered at least $79 million in contracts to their advantage in a complex scheme.

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The contracts for computer equipment and technology for Army companies under MEDCOM's control were used to line pockets, the newspaper said.

MEDCOM, formerly based at Fort Sam Houston, Texas, reportedly abused their status as a company with disadvantaged business, using the status as a cover

to get a leg up on obtaining government work. Contracts were tweaked so government insiders would greatly benefit, the newspaper said.

Additional money received was laundered in Texas real estate, including a swingers club in San Antonio and similar investments in Panama, the report said.

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