Three executives for defense companies allegedly committed fraud in connection with an $8 billion troop supply contract, the Justice Department announced Nov. 29.

They misled the Defense Department as to their progress building warehouses in Afghanistan and violated the Iran commerce prohibition by shipping materials through that country, according to an eight-count indictment filed in the U.S. District Court for the District of Columbia.

The defendants appeared before Judge G. Michael Harvey and pleaded not guilty to the charges, which...