Editing EATSCO (section)

==Collapse and Investigations==
EATSCO’s fraudulent practices led to its downfall:

	•	Investigation:
	◦	In 1982, the U.S. Justice Department began investigating EATSCO for overcharging Egypt $51 million, with $8 million in inflated invoices to the Pentagon. The probe, reported by The Washington Post and The New York Times, also examined how EATSCO secured its exclusive contract, though no Egyptian officials were accused of wrongdoing.
	◦	Egyptian officials, including Kamal Hassan Ali, were interviewed, and Egypt conducted its own investigations, concluding no impropriety. The Egyptian government privately complained about the U.S. probe, citing satisfaction with EATSCO’s performance.

	•	Guilty Plea (1983):
	◦	In July 1983, EATSCO pleaded guilty in federal court in Alexandria, Virginia, to filing false statements through inflated invoices from 1979 to 1981. The company paid a $20,000 fine, and Hussein Salem paid $3.04 million in fines and restitution.
	◦	Thomas G. Clines was implicated in the scheme but faced no charges in this case, though his later Iran-Contra involvement led to legal consequences.

	•	Wilson’s Role: The investigation tied EATSCO to [[Edwin P. Wilson]], who was convicted in 1983 for illegally selling 20 tons of C-4 explosives to Libya. Federal investigators explored Wilson’s funding of EATSCO, but Egyptian officials denied his involvement, citing his Libyan ties as a sensitive issue given Egypt-Libya tensions.

	•	FOIA Requests: A 2016 Freedom of Information Act request by Michael Best to the FBI sought records on EATSCO, revealing 6,858 pages of documents, though processing was delayed due to volume. This indicates significant classified material on the company’s activities.