According to the Saturday edition of the New York Daily News, several female US soldiers led a mud-wrestling match in their bras and panties, while other female soldiers showed – flashed - their breasts to their male colleagues in several incidents at the Army's Camp Bucca prison in southern Iraq.
The newspaper claimed that it had received 30 leaked photos of incidents alleged on 30 October 2004 which "could have been snapped at an out-of-control frat party".
"The episode, which experts called a serious breakdown of military discipline, prompted a probe in Iraq and still is under investigation by stateside military authorities," the paper said.
It cited more serious allegations - that various sergeants had organised the party, lent their rooms to soldiers for sex and were seen "noticeably drunk" during the episode - were being investigated by military authorities in the US.
The mud-wrestling party, the paper alleged, was organised by the 160th Military Police Battalion, an Army Reserve unit from Tallahassee, Florida, to celebrate their return to the US that week.
According to the Daily News, only one soldier has been punished. Deanna Allen, 19, was demoted from specialist to private first class.
Deadly camp riot
Camp Bucca was the scene of a deadly riot last week when US guards opened fire on prisoners at a main detention facility, killing four detainees.
Six other prisoners were injured.
A US command statement said the riot occurred after a routine search for contraband in one of the camp's 10 compounds, and "resulted from both the use of force to control the situation and from violence by other detainees within the camp during the riot".
"The cause of the riot and use of lethal force is currently under investigation by the chain of command and the US army's Criminal Investigations Division, which is standard procedure whenever a detainee death occurs," the statement added.