Department of Defense pays IOTC $40 Million for Iraq War Fuel Deliveries to Coalition Forces

The $40 million payment to IOTC represents amounts due for fuel delivered and received by DLA. IOTC delivered over 332 million gallons of fuel between July 2007 and August 2009. IOTC delivered the fuel on-time and on-specification, the DLA accepted the fuel, and the fuel was used by the Coalition troops during the Iraq conflict.

IOTC received numerous accolades from DLA for its exemplary performance during the war and was a top-ten supplier of petroleum to DLA. Indeed, IOTC's quality control was so good, that DLA authorized "Alternative Release Procedures," whereby IOTC was authorized to deliver fuel without a DLA quality assurance representative onsite to inspect fuel quality. During contract performance, then DLA Contracting Officer John Walker determined that IOTC provided consistent, responsive and outstanding performance during a critical and complicated operation warranting a rating of "exceptional." According to Walker, IOTC's "operations management team [was] fully cooperative to this mission's needs, consistently yielding excellent performance…[and] providing excellent service."

The settlement also represents a total refutation of baseless and politically motivated allegations of fraud against IOTC leveled by Former U.S. Representative Henry Waxman (D-CA), among others. Following a comprehensive investigation, the Department of Defense ultimately concluded that "no fraud vulnerabilities were identified" relative to the IOTC fuel contracts.  As acknowledged in the settlement, "IOTC satisfactorily performed [the contracts and] DLA Energy will not consider the fraud allegations raised in these appeals associated with IOTC's past performance…in making future contract award decisions." Indeed, an IOTC affiliate has already begun fulfilling current DLA Energy contracts and looks forward to serving the DLA in a more robust manner moving forward.

"IOTC is pleased to have reached an amicable resolution of these issues with DLA," said Harry Sargeant III, Chief Executive Officer of IOTC. "We can now look forward to again providing exemplary service to DLA. We are also pleased to see the end of politically charged accusations which have distracted from IOTC's core commitment to our armed forces in mission critical operations."

About International Oil Trading Co.:
International Oil Trading Co. is a leader in the transportation and distribution of high-quality jet fuel, diesel fuel, gasoline, and other specialty fuel products for government, military, aviation, and other industries. Providing elite and dependable support to mission-critical enterprises around the globe, the privately-owned company was founded in 2005 and is based in Boca Raton, Florida.

About Harry Sargeant III:
Harry Sargeant III is the renowned CEO of a global energy and shipping company based in Florida, USA. A former officer and fighter pilot in the United States Marine Corps, Sargeant leads a private global enterprise consisting of aviation companies, oil refineries, oil trading operations, alternative fuels development, and oil and asphalt shipping. Upon leaving U.S. Marine Corps active duty in 1987 with the rank of Major, Sargeant joined Delta Air Lines as a pilot, and subsequently left Delta to lead a small shipping company that by 2008, he had built into a global operation. Mr. Sargeant also founded IOTC, a company that bravely supplied aviation fuel to the U.S. Military in Iraq through the country of Jordan after other contractors has been unable to accomplish this mission. Mr. Sargeant successfully undertook this difficult and complex business enterprise -- and all in the U.S. government agree that his company did an excellent job in supplying the U.S. military despite Mr. Sargeant's fuel truck convoys coming under constant attack from hostile forces. Mr. Sargeant is a respected U.S. business leader, who has also served in politics as a Republican party official in his home state of Florida, and is held is high esteem by many in the U.S. government, including many Republican officials in Congress and the Presidential White House and Cabinet, and government and business leaders in the U.S. and around the world.

CONTACT: Patrick Dorton, [email protected]; 202-549-7670

SOURCE International Oil Trading Co.