Two Butler County brothers have pleaded guilty to defrauding the U.S. Defense Department out of millions of dollars.
Former co-owners of Ibis Tek Thomas and John Buckner entered guilty pleas Wednesday in federal court.
Ibis Tek was contracted to produce emergency escape window kits for Humvees. The brothers admitted they created a shell company called Alloy America, which they then used to inflate the costs of the Chinese-made products and overcharge the government more than $6 million.
Also pleading guilty Wednesday was Ibis Tek’s former CFO Harry Kramer.
The men will be sentenced in October.
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Ibis Tek- which still remains in Butler County- was not charged in the scheme.
The Penn Township company released a statement when the criminal charges against the Buckner brothers were announced back in March stating the company was cleared in the related investigation which dates back to activities eight years ago.
The company continued to say that the over 250 employees of the new Ibis Tek continue forward in their mission, which is to proudly serve the warfighter and various government customers.
Ibis Tek was sold in February to new investors.
In the latest statement released Tuesday by Ibis Tek’s new president Vince Nardy regarding the company’s first 100 days under new ownership, Nardy says the company is thriving.
“Having received comfort from the DoJ and Department of Defense (DoD) to clear the company to be held harmless and continue to do business with the DoD and other government entities, the new ownership team spent the early part of its first 100 days meeting with major customers and partners to discuss the team’s deep defense industry expertise and long history of compliance,” it reads.
“The first 100 days of the new Ibis Tek, Inc. have been a flurry of activity and planning processes that will propel the company into its next phase of growth,” said Vince Nardy. “With a shared vision among our management team, Board, and 250 employees, as well as the support of The PrivateBank, Ibis Tek, Inc. is well-positioned for success.”
Photo by L. Allen Brewer
