JMNY83
October 26th, 2007, 11:54:38 AM
A local air cargo company that delivers food, medicine and military equipment to soldiers in Iraq took a guilty plea in Buffalo’s federal court on Thursday, admitting that it cheated the U.S. Defense Department out of millions of dollars.
Under the terms of its corporate plea deal, National Air Cargo of Orchard Park will pay more than $28 million in fines, restitution and forfeitures. U.S. Attorney Terrance P. Flynn called it “the largest criminal recovery, in terms of dollars, in the history of Western New York.”
But for owner Christopher J. Alf and other company officials, the good news is this: Not a single one of them will spend so much as a day in jail.
Why didn’t federal prosecutors insist on jail time?
“The focus of the investigation was improper billing and submitting false documents to the Defense Department,” Flynn said. “Our goal was to try to make the American taxpayer whole, and to put a stop to the illegal activity. We definitely feel that we’ve done that.”
Federal prosecutors and the company emphasized that the crimes uncovered involved military shipments within the continental United States. Flynn said the investigation uncovered no wrongdoing involving shipments to Iraq or Afghanistan, where National Air Cargo does much of its business.
But Flynn also conceded that the investigation focused on shipments to military bases within the United States, and did not closely examine the overseas shipments.
The company, which employs 70 people locally and 280 overseas, was investigated for more than two years by the Defense Department’s Criminal Investigative Service and the FBI. Authorities said information from a whistle-blower — a former company official — touched off the probe.
According to court papers, the company repeatedly overcharged the Defense Department for military shipments within the United States from early 1999 until April 2005.
..more.. http://www.buffalonews.com/home/story/192550.html
Under the terms of its corporate plea deal, National Air Cargo of Orchard Park will pay more than $28 million in fines, restitution and forfeitures. U.S. Attorney Terrance P. Flynn called it “the largest criminal recovery, in terms of dollars, in the history of Western New York.”
But for owner Christopher J. Alf and other company officials, the good news is this: Not a single one of them will spend so much as a day in jail.
Why didn’t federal prosecutors insist on jail time?
“The focus of the investigation was improper billing and submitting false documents to the Defense Department,” Flynn said. “Our goal was to try to make the American taxpayer whole, and to put a stop to the illegal activity. We definitely feel that we’ve done that.”
Federal prosecutors and the company emphasized that the crimes uncovered involved military shipments within the continental United States. Flynn said the investigation uncovered no wrongdoing involving shipments to Iraq or Afghanistan, where National Air Cargo does much of its business.
But Flynn also conceded that the investigation focused on shipments to military bases within the United States, and did not closely examine the overseas shipments.
The company, which employs 70 people locally and 280 overseas, was investigated for more than two years by the Defense Department’s Criminal Investigative Service and the FBI. Authorities said information from a whistle-blower — a former company official — touched off the probe.
According to court papers, the company repeatedly overcharged the Defense Department for military shipments within the United States from early 1999 until April 2005.
..more.. http://www.buffalonews.com/home/story/192550.html