National Air Cargo of Orchard Park has struck a US$28 million no-jail plea deal with the US government, after being accused of cheating the government out of millions of dollars by falsely billing the US Defense Department.
The company's head Christopher Alf and his staff are not expected to receive prison terms when the case is heard at the US District Court, after National Air Cargo agreed to pay fines and restitution totalling $28 million, reports The Buffalo News.
The company pleaded guilty in October to a single count of falsifying records to say that a military shipment arrived on time when it came late.
Such activities came to light after a former company executive told agents that National Air Cargo had repeatedly overcharged the Defense Department for military shipments within the United States from early 1999 until April 2005.
The former executive claimed the company changed delivery dates on military shipments when it sought payment. The false records showed the goods arrived on time when they actually were late.
The government claimed the company was paid more than $13.8 million based on a series of false statements during a three-year period, the report said.
After the case is brought to court, the company is expected to continue to do business with the federal government.
"NAC pled guilty to making one false statement, not a false claim," wrote lawyer Paul Cambria in his company's defence. "NAC did not admit to overcharging the government."
Mr Cambria said the false statement was made by one of the company's low-level employees. "We have no idea who it was," he wrote. "However, as a corporation NAC is responsible for employees, both good and bad, and we take responsibility for their actions surrounding this one false statement."
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