Friday, October 13, 2017

Company President Found Guilty of Fraud Against the Government

A jury has found the owner of Armet Armored Vehicles Inc. guilty of defrauding the U.S. Government on a contract for 32 Gurkha armored gun trucks. The company (and by extension the owner) lied about the ballistic and blast protection capabilities of their Gurkha gun trucks as well as only delivering seven of the promised 32 vehicles contracted for and delivering those seven vehicles long after the contract delivery date.

Evidence at trial demonstrated that the owner executed a scheme to defraud the United States by providing armored gun trucks that were deliberately under-armored. Although the gun trucks did not meet contractual specifications, the company and its employees represented that the trucks were adequately armored.

After the verdict, the Judge in the case took the unusual step of remanding the owner into custody pending a full bond hearing. Perhaps he was considered a flight risk. A sentencing date has not yet been scheduled.

This case began with a whistleblower suit by a company employee.

The Gurkha is an armored military and law enforcement vehicle. It is based on a Ford F550 chassis with a 6.7 liter diesel engine but is typically customized to the user's needs.

A previous civil action involving this incident was settled in favor of Armet. Read more about this case in the Justice Department press release.

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