UK contractor APTx Vehicle Systems has agreed to a one million US dollar fine after admitting wire fraud conspiracy

A British contractor has agreed to plead guilty to wire fraud conspiracy in a deal to supply vehicles to Iraqi police during US-led reconstruction efforts, US officials said.

The US Department of Justice said APTx Vehicle Systems agreed to a one million dollar (£622,000) criminal fine.

Officials say APTx was to receive 5.7 million dollars (£3.5 million) as a subcontractor in an August 2004 deal to procure 51 vehicles for the Iraqi Police Authority.

They say in 2005 the London-based company tried to draw down the letters of credit it was paid with by claiming the vehicles were ready to ship to Iraq even though they had not been built.

Massachusetts businessman and APTx representative Benjamin Kafka pleaded guilty in 2009 to concealing his knowledge of the scheme.

PA