HE'S "ROTTEN TO THE CORPS" - MARINE CAPT
CHEATS HIS BUDDIES IN CONTRACTING FRAUD
IN IRAQ - WIFE ALSO CHARGED IN SCAM WHERE
MONEY SKIMMED FROM SWEETHEART DEALS
WITH FAVORED CONTRACTORS - GRUNTS WERE
SHORTCHANGED ON GYM EQUIPMENT AND OTHER
GEAR - ERIC SCHMIDT AND WIFE JANET FACE UP
TO 23 YEARS IN SLAMMER - SHE COPS PLEA DEAL
MAY GET OFF EASY - THIS MARINE OFFICER WILL
END UP IN "BEHIND BARS" BEFORE YEAR IS OUT

It pains us to report that a Marine officer would betray his buddies, and by cheating them, score up to $1.75 million dollars in illegal contract profits. But Capt. Eric Schmidt, currently assigned to the 1st Marine Division at Camp Pendleton, Calif., let greed dishonor his uniform, and turned out to be "rotten to the Corps."

So was his wife, Janet. The Feds say she aided her hubby in the fraud while he was stationed in Iraq during 2008. Her role back home was to create phony invoices for gym equipment and other gear that was meant to go to Marines. But a lot less workout equipment and exercise machines made it to the Grunts than the government had paid for.

Court papers show the captain steered such contracts to a corrupt Iraqi vendor - Al-Methwad Company - and greatly inflated costs. The overpayments were skimmed off the top. The stupid Schmidts were careless, however, in not concealing their sudden windfall of greenbacks. They bought two luxury homes in California, one in the exclusive Big Bear Resort, northeast of Los Angeles. When investigators raided the swanky residences, they seized expensive automobiles and some $40,000 in cash.

The 39 year-old Marine officer is charged with two counts of filing false income tax returns and conspiracy to commit wire fraud. He faces a maximum penalty of 23 years in prison. Schmidt is scheduled to enter a guilty plea in federal court April 2nd.

CAPTAIN'S WIFE CUTS DEAL WITH FEDS - PLEADS GUILTY TO ONE COUNT
OF FILING FALSE TAX RETURN

Meanwhile, wife Janet has already cut a deal for herself. She pleaded guilty to a felony charge of filing a false income tax return. That should save her from anywhere near the lengthy prison term her hubby is likely to get when the government gets done with him.

The woman, also 39, is slated to be sentenced in federal court in Riverside, Calif. on June 7.

MilitaryCorruption.com was unable to find out at press time, whether or not Janet Schmidt volunteered to help the government build it's case against her husband in the contracting fraud case. Exact terms of her plea bargain deal with prosecutors have not been released.