The wife of a Marine captain has pleaded not guilty to conspiring with her husband to skim $1.75 million from government contracts in Iraq.
Janet and Eric Schmidt are charged with conspiracy to commit wire fraud and filing a false federal tax return.
Court records show a plea agreement was filed in the case, but the documents are sealed.
Prosecutors say the Murietta couple arranged for a company to obtain government contracts while the Marine was serving in Iraq in 2008. The contracts were allegedly filled with too few or inferior products and the couple pocketed the difference.