3 Indicted in Texas in Army Contract Fraud Case

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SAN ANTONIO (AP) Two former soldiers and a South Texas businessman have been indicted in a $7 million Army medical equipment contract fraud and bribery investigation.

Prosecutors in San Antonio on Thursday announced the 40-count indictment names retired Army Master Sgt. Lawrence Peter Fenti of New Braunfels, ex-officer Dr. Heidi Lynn Webster of Manhattan, Kan., and John Walter Hoffman. He owns Hoffman Surgical Devices Inc. in San Antonio.

Fenti and Webster worked at Irwin Army Community Hospital at Fort Riley, Kan., and Brooke Army Medical Center in San Antonio.

All three are charged with conspiracy to commit wire fraud and wire fraud. Fenti and Webster are also charged with bribery. Hoffman also faces money laundering charges.

Attorneys for Webster and Hoffman say they'll plead not guilty. A lawyer for Fenti didn't immediately comment.