(Updates with judge’s order in third paragraph.)
July 27 (Bloomberg) -- U.S. prosecutors are investigating “potential new charges” against Agility, the Kuwaiti storage and logistics provider under indictment for overcharging the U.S. military, a judge wrote.
Agility asked U.S. District Judge Thomas W. Thrash in Atlanta to reject a federal grand jury subpoena demanding the appearance of retired U.S. Army General Dan Mongeon, a member of Agility’s board, according to federal court documents. Thrash, in an order docketed today, upheld the subpoena.
“The principal purpose of questioning this witness is to investigate potential new charges,” Thrash wrote. “This is a proper use of the grand jury.”
Agility was indicted in November 2009 on allegations it overcharged the U.S. government on a multibillion-dollar contract to supply food for troops in Kuwait and Iraq.
Mongeon is also chief executive officer of an Agility unit, DGS Holdings Inc., according to court documents. Harry Frazier, an Agility spokesman in the U.S., had no immediate comment on the judge’s order and said he was contacting the company.
“The vast majority of information General Mongeon knows about the allegations at issue has been derived solely from privileged communications with company counsel,” Agility wrote in its motion to suppress the subpoena.
The U.S. government, in its court filings, wrote that “the purpose of this subpoena is not to build further evidence for trial on the existing charges but rather to investigate additional potential charges.”
The case is U.S. v. Public Warehousing Co., 09-cr-490, U.S. District Court, Northern District of Georgia (Atlanta).
--Editors: Andrew Dunn, Charles Carter
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