Report: Pentagon declined to investigate child-porn purchases by employees

Among those charged was Gary Douglass Grant, a captain in the Army Reserves and military prosecutor. Grant pleaded guilty last year to charges of possession of obscene matter of a minor in a sexual act in California. Another fomer NSA contractor fled the country after being indicted and is believed to be in Libya.

But the majority of individuals identified were never charged or investigated at all. The names were turned up during a 2006 investigation by Immigration and Customs Enforcement known as "Project Flickr" that identified more than 5,000 Americans who subscribed to sites that offered child pornography. DCIS cross-checked the ICE list against military databases to come up with the names of the 264 Pentagon employees and contractors identified.

A source told Yahoo! that DCIS doesn't have the resources to fully investigate all of the individuals identified. The documents show DCIS priortized individuals in senior positions and those who had been previously suspected or convicted of sex crimes or had access to children as part of their duties.

A DCIS agent eventually recommended the investigation be closed due to the lack of cooperation from ICE. Some of the 212 suspects may have eventually been investigated by other federal or law enforcement agencies. There is no indication their superiors or commanding officers were ever informed of the allegations.