Psst! Wanna Hot Flak Jacket?

The undercover scheme had an apt name: Operation Rip-stop. Federal agents and the Naval Investigative Service last week issued 65 arrest warrants for Marines and civilians who had ripped off an estimated $500,000 worth of military supplies from Camp Pendleton, near San Diego. Authorities estimate that theft of military equipment costs the Government $200 million a year.

Posing as clerks at a bogus Oceanside, Calif., store called Golden State Surplus, authorities bought pilfered flak jackets, combat knives, .45-cal. magazines and sleeping bags from Camp Pendleton Marines for 10% to 20% of their cost. "Marines were quite literally breaking down the door trying to sell us gear," said FBI Agent John Kelso. Among the purloined goods were 9,400 blank military ID cards, which could have been used for access to mili tary bases. Most of the gear was never reported missing. Some inventories even showed an over stock, indicating that higher-ups may at least have winked at the practice.