$6 million DOD Fraud, $1 million paid in illegal gratuities, 5 charged with tax violations

[nitpicker]

https://www.justice.gov/usao-wdpa/pr/6-million-dod-fraud-1-million-paid-illegal-gratuities-5-charged-tax-violations

Department of Justice
U.S. Attorney’s Office
Western District of Pennsylvania

FOR IMMEDIATE RELEASE
Friday, March 3, 2017

$6 million DOD Fraud, $1 million paid in illegal gratuities, 5 charged with tax violations

Anthony Shaw of U.S. Army Tank-Automotive and Armaments Command Charged with Receiving More than $1 Million in Cash and Benefits

PITTSBURGH – Acting United States Attorney Soo C. Song announced today that five Informations have been filed in federal court in Pittsburgh charging three local residents and two residents of the greater Detroit area with crimes ofmajor fraud against the U.S. Department of Defense, tax violations and illegal gratuities. Thomas G. Buckner, 65, of Gibsonia, Pennsylvania, and his brother, John P. Buckner, 67, of Lyndora, Pennsylvania, were each named in three count Informations charging them in one count with defrauding U.S. Army Tank-Automotive and Armaments Command (TACOM), and two counts of income tax evasion.

According to the Informations filed with the court, the Buckner brothers were 50/50 owners of Ibis Tek, LLC (hereinafter Ibis Tek). Ibis Tek’s main office was located at 912 Pittsburgh Street, Butler, Pennsylvania 16002, and it had an office at Ibis Tek Victory Road facility, 220 South Noah Drive, Saxonburg, PA 16056. Ibis Tek manufactured both military and commercial products but specialized in the development of transparent armor and accessory products for tactical and military combat vehicles. Ibis Tek itself was not charged with any violations.

TACOM, located in Warren, Michigan, was responsible for letting and overseeing contracts on behalf of the U.S. Department of Defense, including contracts concerning High Mobility Multipurpose Wheeled Vehicle (hereinafter Humvees). Ibis Tek had a subcontract to produce Vehicle Emergency Escape Window (VEE Window) Kits for Humvees. The Buckners inflated Ibis Tek’s costs to manufacture the VEE Window kits by creating Alloy America, LLC, (Alloy) a company that the Buckners controlled, by using Alloy to purchase the frames in China for $20 per frame, and by using false invoices from Alloy to make it appear that Ibis Tek paid $70 per frame. In addition, the Buckners sold scrap aluminum collected in the manufacturing process but failed to credit that money to TACOM. The losses to TACOM were $6,085,709.
(snip)

[Sherman A1]

1. One would be willing to bet

that if the DOD policed itself better with our tax dollars that they would have more than enough to cover that proposed $54B increase.

[bpj62]

2. American Parts

I was under the belief that all military parts had to be manufactured in the United States. The article states that the window frames were produced in China. This case is an example of why cannot trust the military industrial complex. This case is all about lining the pockets,of two brothers who were already wealthy.