BUTLER, Pa. (WKBN) – Two brothers from Butler County were sentenced to prison and will pay millions in fines and restitution after being found guilty of defrauding the U.S. Department of Defense.
Thomas Buckner was sentenced to 30 months in prison and John Buckner was sentenced to 24 months.
According to federal prosecutors, the brothers, who own Ibis Tek in Butler, Pa, created a shell corporation named Alloy America, LLC, to create invoices for window escape kits for Humvees. The brothers paid $20 for the kits through a manufacturer in China but made it appear on the invoices that they paid $70.
In addition, scrap aluminum from the manufacturing process, totaling about $6 million, was sold as scrap but not credited to TACOM, Inc., the company that was overseeing contracts on behalf of the U.S. Department of Defense.
The brothers also faced income tax evasion charges for not reporting the cash from the sale of the scrap aluminum.
Acting U.S. Attorney Song said, “The imposition of years of imprisonment, coupled with more than $2.7 million in restitution and fines, justly resolves the multi-year investigation into the $6 million fraudulent scheme of these defendants against the United States.”
There were three related guilty pleas entered in this investigation and each of these defendants is awaiting sentencing.
Harry H. Kramer, 52, of Wexford, Pennsylvania, pleaded guilty to one count of fraud for his role as CFO of Ibis Tek in the above described scheme against TACOM. Counts Two and Three charged him with filing false returns for Ibis Tek for 2009 and 2010.