Ex-defense contractor CEO enters fraud guilty plea
PENSACOLA, Fla. — The former chief executive of a defense contractor with ties to Rep. John Murtha pleaded guilty in federal court Tuesday to a kickback scheme and defrauding the Air Force, and promised to cooperate in an ongoing criminal investigation.
Federal prosecutors said Richard S. Ianieri solicited kickbacks from a subcontractor in Pennsylvania while he headed Coherent Systems International Corp. Ianieri also was charged with filing false purchase orders related to an Air Force contract in Florida.
Ianieri pleaded guilty to both charges during a hearing in Pensacola and is scheduled to be sentenced in September. He could face up to 15 years in prison.
A nine-page plea agreement that Ianieri signed says the government will urge a lighter prison sentence if he provides substantial assistance “in the investigation or prosecution of other persons who have committed offenses.”
Following Ianieri’s plea, Murtha spokesman Matthew Mazonkey said it is not the congressman’s job to oversee companies and that “if they broke the law, then they should be held accountable for their actions.”
Murtha, D-Pa., has directed hundreds of millions of dollars in government contracts over the years to Coherent and other defense contractors through a process called earmarking.
“This case isn’t about earmarks,” said Mazonkey. “It’s about individuals within the defense industry and the Defense Department accused of defrauding the government.”
Executives at Coherent and two other companies named in court papers in Ianieri’s Florida case have donated over $95,000 to Murtha’s re-election campaigns and his political action committee since 2002, according to Federal Election Commission records.
One of the companies is Kuchera Industries Inc. of Windber, Pa., about 10 miles from Murtha’s political home base of Johnstown.
A felony information filed in Pittsburgh states that Ianieri was given two kickbacks totaling nearly $200,000 from a company identified only as “K” for “improperly obtaining and rewarding favorable treatment” regarding a defense subcontract.
In an April 2006 news release, Murtha announced that Coherent and Kuchera Defense Systems were working “virtually as one company” on 14 contracts worth $30 million to develop high-tech military gear.
Kuchera’s offices were raided by federal agents in January. Kuchera built high-tech military components that Coherent designed.
The Florida charges concern a Coherent contract given through the Air Force Research Laboratory to deliver four Ground Mobile Gateway Systems, which are designed to help soldiers and pilots trace U.S. units and cut down on friendly fire.
The United States paid Coherent $5.9 million to build the systems. According to federal court papers, Coherent subsequently paid about $1.8 million to subcontractors for the delivery of software and materials that were not part of the contract.
Ianieri was charged with presenting purchase orders to the Air Force that he knew were “false, fictitious and fraudulent,” court records state.
Murtha also has ties to lobbyists for some of the companies under scrutiny. His brother worked from 2004 to 2006 for KSA Consulting, of Rockville, Md., which lobbied for Coherent. Another lobbying firm, PMA Group, represented two of the companies involved in the Florida investigation.
Founded by a lobbyist who has long been close to Murtha, PMA and its defense contractor clients have donated over $2 million to Murtha’s re-election campaigns and to his political action committee over the years.
Ianieri’s attorney, W. Thomas Dillard, of Knoxville, Tenn., declined to comment after the hearing. He would not address questions regarding whether Murtha had sponsored an $8.2 million earmark that included the money for Coherent. Murtha’s spokesman also has refused to say whether the congressman was the sponsor.
Dillard also refused to say whether his client could implicate Murtha or other members of Congress in allegedly illegal conduct.
Associated Press writer Pete Yost in Washington contributed to this report.
Related News
Ex-contractor at Eglin AFB sentenced to probation in fraud case tied to Congressional earmarksSeptember 22nd, 2009 Ex-AF contractor sentenced for obstructing justicePENSACOLA, Fla. — A former defense contractor for Eglin Air Force Base was sentenced to four years' probation Tuesday for obstructing justice as part of wider fraud scheme by contractors and defense lobbyists with ties to a powerful Pennsylvania congressman.
Hartford, Conn., councilwoman pleads not guilty in probe involving mayorSeptember 18th, 2009 Conn. councilwoman pleads not guiltyHARTFORD, Conn. — A city councilwoman has pleaded not guilty to a charge in the Connecticut state corruption investigation of Hartford Mayor Eddie Perez and the city's government.
Del. man who fled to Central America with 3 daughters pleads guilty to fraud, kidnappingSeptember 3rd, 2009 Del. dad pleads guilty in international kidnappingWILMINGTON, Del. — A Delaware optometrist who fled to Central America in a motor home with his three young daughters has pleaded guilty to federal kidnapping and bank fraud charges.
Calif. hedge fund manager pleads guilty to investment fraud, cheating family out of $25MAugust 25th, 2009 Calif. hedge fund manager pleads guilty to fraudLOS ANGELES — The founder and manager of two Beverly Hills hedge funds has pleaded guilty to federal fraud charges. Bradley Ruderman pleaded guilty Monday to two counts of wire fraud, two counts of investment adviser fraud and a misdemeanor count of failing to file income taxes in 2007.
Man pleads guilty to smuggling 27 million cigarettes from South Fla. to European UnionAugust 14th, 2009 Man pleads guilty to smuggling cigarettes abroadMIAMI — Authorities say an American has pleaded guilty to smuggling more than 27 million cigarettes from the U.S. into some European Union countries.
Defense contractor tied to Murtha removed from list of companies barred from government workAugust 14th, 2009 Suspension lifted for contractor tied to MurthaWASHINGTON — A defense contractor with longtime ties to Rep. John Murtha said Thursday the Navy is lifting a suspension that has kept it from getting new government work.
Former Fla. judge linked to stripper pleads guilty to bank fraud by false mortgage applicationAugust 6th, 2009 Former Fla. judge linked to stripper pleads guiltyTAMPA, Fla. — A former Florida appeals court judge who resigned amid controversy over his financial and personal relationship with a stripper has pleaded guilty to bank fraud.
Florida jury convicts ex-Air Force contractor of destroying records, lying about contractsJuly 31st, 2009 Ex-Air Force officer guilty of lying on contractsPENSACOLA, Fla. — A retired Air Force lieutenant colonel was convicted Friday of destroying records and lying to a grand jury in connection with defense contracts awarded by a military research lab in Florida.
Ex-compliance boss at Conn. securities firm pleads guilty to conspiracy to commit $131M fraudJuly 21st, 2009 Ex-compliance officer at Conn. firm pleads guiltyNEW YORK — The former chief compliance officer at a Connecticut securities company has pleaded guilty to conspiracy to commit securities fraud and wire fraud.
Ex-Air Force contractor pleads guilty, will cooperate with investigation into kickback schemeJuly 20th, 2009 Ex-Air Force contractor to work with prosecutorsPENSACOLA, Fla. — A former government employee pleaded guilty Monday and agreed to cooperate in a criminal investigation of appropriations that members of Congress steer to defense contractors.
Ex-defense contractor with ties to Pa. Congressman Murtha expected in Fla. courtJuly 14th, 2009 Ex-defense contractor with ties to Murtha in courtPENSACOLA, Fla. — The former chief executive officer of a defense contractor with ties to U.S.
Ex-defense contractor from Pa. wants to plead guilty to taking kickbacks, case moved to Fla.July 8th, 2009 Ex-defense contractor exec wants to plead guiltyPITTSBURGH — A former defense-contracting executive from Pennsylvania intends to plead guilty to a kickback scheme after his case is transferred to a federal court in northern Florida. Court documents filed late Tuesday and others unsealed Wednesday show Richard S.
Lawyer pleads guilty to role in $2.5M kickback scam involving northeastern Pa. juvenile casesJuly 1st, 2009 NE Pa. lawyer pleads guilty in $2.5M kickback scamSCRANTON, Pa. — A lawyer at the center of a $2.5 million kickback scheme involving a pair of corrupt judges and hundreds of juvenile criminal cases pleaded guilty in federal court Wednesday.
Lawyer Dreier pleads guilty to defrauding hedge funds of more $400 millionMay 12th, 2009 Lawyer pleads guilty to huge fraudNEW YORK — A Prominent Manhattan lawyer has pleaded guilty to defrauding hedge funds of more than $400 million. Fifty-eight-year-old Marc Dreier on Monday pleaded guilty to conspiracy to commit securities and wire fraud, securities fraud, wire fraud and money laundering.
Prosecutors: Tenn. financier who embezzled $11M pleads guilty in first bank bailout fraud caseApril 30th, 2009 Tenn. financier pleads guilty in bank fraud caseNASHVILLE, Tenn. — Prosecutors say a Tennessee financial adviser has pleaded guilty to criminal charges in the first fraud case related to the federal bank bailout program.
Loading ...