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Pentagon Workers in Jackpot Over Casino, Strip Card Charges

Officials say government credit cards were misused but taxpayers didn't foot the bill.
A dancer at Scores rehearses on Monday, Aug. 26, 2013 for the strip club's opening inside the Taj Mahal Casino Resort in Atlantic City, N.J.Wayne Parry / AP

Defense Department workers ran up more than $1 million in charges at casinos and strip clubs with their government-issued credit cards in a single year, a Pentagon audit has found.

Officials told NBC News that taxpayers did not have to foot the bill because the cardholders were required to pay "personal" expenses out of their own pockets.

The DOD's Inspector General looked at transactions by civilian and military personnel between July 2013 and June 2014 and zeroed in on 4,437 transactions in which cardholders charged a total of $952,258 at casinos and an additional 900 charges totaling $96,576 at strip clubs.

The charges are against regulations on the use of government credit cards, but they did not violate any laws because they "did not result in the payment or loss of US taxpayer dollars," according to the Pentagon.

Administrative action has already been taken against 364 of the cardholders, while 79 are "pending action." Most of the offenders have undergone "counseling" on the use of the cards, but at least one military officer has been demoted one rank.

The officials could not say whether any civilians cardholders have been dismissed from their job.

Steven Senne / AP