PITTSBURGH (AP) — Two brothers who formerly owned a Pennsylvania defense contractor and their former chief financial officer have pleaded guilty in a $6 million scheme to overcharge the U.S. Defense Department for Humvee window kits.
The Butler-based contractor, Ibis Tek LLC, removed the former co-owners, 68-year-old Thomas Buckner and 66-year-old John Buckner, as directors of the company in January along with former CFO Harry Kramer.
The three pleaded guilty Wednesday in Pittsburgh to fraud and tax evasion charges.
The brothers agreed to repay more than $6 million to the government, and have already repaid nearly $900,000 in income tax losses.
The target of the fraud was the Warren, Michigan-based U.S. Army Tank-Automotive and Armaments Command, or TACOM.
Ibis Tek was sold in February to investors who say the new company had nothing to do with the scam.