Jeff St. Clair wrote about it in his 2005 book "Grand Theft Pentagon: Tales of Corruption and Profiteering in the War on Terror." It's an explosive account of how contractors like Halliburton, Lockheed Martin, Boeing, Bechtel and the Bush family-connected Carlyle Group scam multi-billions at taxpayer expense and not a whiff of it in the mainstream. It's the reason US annual "defense" spending tops $1.1 trillion (conservatively) with all military, homeland security, veterans, NASA, debt service and other allocations included.

Case 2: Halliburton Delivers Half Full Cartons to the Pentagon's "Swing Shift"

Arrigo refers to the Pentagon's Receiving Department "swing shift" personnel. They alone are on the take so other shifts are shut out and can't report it. As a CIA insider, she checked and found damning evidence - about "the military (not) getting supplies to the troops on time." She also learned that Halliburton has its "Representative to the CIA," and one at the Pentagon as well. Both get federal salaries but neither was "hired by CIA or the military through their personnel departments. Neither had done military training or trained at (CIA's) 'Farm' as a spy." Arrigo was disturbed and with good reason when orders from the top said back off.

It got worse. Arrigo worked at CIA for over 30 years and reported directly to Tenet. But she wasn't prepared for what she found - a new section at the Agency without her knowledge. It employed 40 people, all working for Halliburton "while being paid by the US taxpayer as if they were CIA." It was secret. No files were on them. They were never interviewed, never vetted, and she concluded: "CIA had a back door in its security to let Halliburton put anyone they wanted in (its) hallways. It was an outrageous (breach) of US National Security," and in a post-9/11 "war on terrorism" climate.

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She was shocked and told Tenet. His reply: "Yes, I know." Head of CIA building security also knew. Arrigo asked what he'd do about it. His answer: "Keep my mouth shut so I can stay alive and I suggest you do the same." She asked if he, CIA or Halliburton would kill her if she talked. He didn't think so. Would national security firm CACI do it because it's affiliated with Halliburton and also has a CIA back door for its personnel at the Agency.

Arrigo dug deeper. She got inside Halliburton's area and asked questions. Why was the company shipping half the contracted for amounts and shortchanging the troops and taxpayers. It was no different for war zones. Halliburton "set up the same corrupt system of swing shift receivers (for) at least 3 continents. They received the cartons and signed (off) that the goods were all received properly. Then the shortages later were chalked up to thefts or war damage, etc."

Arrigo again informed Tenet. His answer: "This is nothing new," then added: "Have a report about it on my desk before Christmas (2001)." It got worse. Arrigo told Tenet he's responsible for "correct(ing) Halliburton's short-shipping and its invasion of the CIA." He said he couldn't because the White House tied his hands. Call Congress, Arrigo said. DCI "should be a man of courage." Tenet ignored her, so Arrigo faxed documents revealing Halliburton fraud to GAO - omitting national security secrets. One of them crowed about the scheme's profitability, and having high-level officials involved made it foolproof.

It was clever and even more devious than Arrigo imagined. Halliburton uses each shortage complaint as a new order. "In that way (it) never (loses) by having to make good for (what's) missing," and (it gets) paid double for the same merchandise.

Arrigo knew too much, took risks to learn it, and what happened next is shocking. Halliburton's "CIA Representative" confronted her, tore out her phone, ransacked her office, removed every shred of paper, and hauled her off bodily "to a prison cell" inside its basement offices. She was intimidated and threatened. Thought she might be killed. She survived, but the message was clear. She complained to Tenet. Showed him her bruises. He responded dismissively: "There, there, everything will be all right in the morning."

GAO still has Arrigo's files. It began investigating but stopped. She thinks that Congress can resume it and asked Waxman to do it. That's where things now stand.

Case 3: The White House Conspiracy to Cook the Books - Halliburton, Carlyle and CIA

In 2002, Arrigo tried a new tact - ingratiating herself with "Halliburton's Man" and using it to her advantage. She offered cooperation for access to his space and make him think she was on his side. It worked, went on for four and one-half months through late May, and it paid off - with plenty of insider knowledge "about Halliburton and how it works." Enough to fill a book, she says, but her account sticks to highlights.

First off, it's pure myth that Dick Cheney stopped running the company. "He called in orders to the man I worked for almost every day and sometimes two or more times a day. He remained (Halliburton's) functional head in all but name. No one....had the power to override his orders." Second, Cheney never divested himself of Halliburton profits. "He merely hid how (he got them) through a series of shell companies."

One of Arrigo's jobs was to liaison between Halliburton and CIA's "creative accounting departments." In other words, their co-conspiratorial treasury looting efforts, and Arrigo got insider access to it. Her advanced math and computer software training qualified her. In a few months, she became expert in how CIA and Halliburton hid their "financial illegalities."

She explained - "Computers are good ways to fool most people because (they don't) look inside of them." They can be programmed "to print out one set of books for regulators, another for Defense Contractors, another for the Pentagon, another for the taxpayer," and so forth. It's simple. Decide what you want, and machines will create it in any desired form. The trick is doing it expertly, most criminals can't, so they need professionals to do it for them. It means crimes are never secret, and many computer experts know about them.