When the Bush administration took over the Pentagon's beleaguered inspector general office in 2002, officials found something startling: The director's office, at some point, had been electronically bugged. Sorting out why the listening device was inside the walls of the office, with a cord leading to another office, is just one issue that had to be addressed by Joseph E. Schmitz, President Bush's pick three years ago to be the Defense Department's top cop. A Naval Academy graduate and civil litigation lawyer, Mr. Schmitz was tapped to run the office responsible for investigating million-dollar fraud in the far-flung defense industry...
