Zephyr Aviation LLC, located in Mineral, Virginia, and its owners, Frederick Credno Jr. and Frederick W. Credno III, have agreed to pay $3,901,000 to resolve allegations that they violated the False Claims Act by submitting inflated invoices for aviation contracts to the Department of Homeland Security.
This settlement resolves allegations pertaining to contracts with DHS under which Zephyr chartered flights to transport persons in the custody of CBP between 2022 and 2025.
In connection with these contracts, Zephyr subcontracted with various aircraft operators to fly the required flights, and Zephyr submitted invoices to CBP purportedly based on the required flight times.
The United States alleged that Zephyr and its owners routinely submitted invoices to DHS that requested payment for flight hours that exceeded the actual flight times of the aircraft operators.
“Companies that do business with the government are expected to charge the United States accurately for the goods and services they provide,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division.
Shumate said the department would continue to pursue those who knowingly overcharge the government at the expense of the American taxpayers.
With this settlement, Inspector General Joseph V. Cuffari said the DHS “are sending a clear message that committing fraud in federal contracts will be met with significant sanctions” against those defrauding the American taxpayer.
“This settlement showcases CBP OPR’s ongoing commitment to accountability and integrity,” said Acting Assistant Commissioner Robert B. Danley of the Customs and Border Protection Office of Professional Responsibility. “Today’s settlement reaffirms our duty to protect taxpayers and hold accountable those who take advantage of our government programmes.”
