Nyree Pettaway, Obstruction of Money Laundering Investigation, Texas 2009

A Houston woman has pleaded guilty to her role in a conspiracy to cover up her uncle’s role in accepting more than $9 million in bribes as a contracting officer in Kuwait.

Nyree Pettaway, 37, of Houston, pleaded guilty in U.S. District Court for the Western District of Texas to one count of conspiring with her uncle, John C. Cockerham, Carolyn Blake (her aunt and Cockerham’s sister) and others, to obstruct the investigation of money laundering related to Cockerham’s receipt of bribes.

Pettaway admitted that, as Cockerham learned that he was under investigation in late 2006, he solicited her assistance to create cover stories for the millions of dollars he had received and to return $3 million in cash to co-conspirators for safekeeping.

Pettaway admitted she traveled to Kuwait, received the cash from Blake, and gave it to others to hold for Cockerham. Pettaway also admitted that she delivered fraudulent documents to contractors in Kuwait, attempting to make the bribe payments look to investigators like legitimate loans.

Pettaway faces up to five years in prison and a fine of $250,000. In addition, she agreed to pay $5 million in restitution to the United States.

Cockerham pleaded guilty in January 2008 to participating in the complex bribery and money-laundering scheme. According to court documents, he was responsible for awarding contracts for services to be delivered to troops in Iraq, including bottled water. In return for awarding illegal contracts, Cockerham admitted to receiving more than $9 million in bribe proceeds.

Carolyn Blake pleaded guilty in March 2009 to one count of money laundering conspiracy after accepting more than $3 million in bribe proceeds on behalf of John Cockerham. Blake admitted she had expected to keep 10 percent of the money she collected.

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